Minister of Works, Dave Umahi has chided the nation’s budgetary system as bad for timely completion of projects.
Speaking during a courtesy call on the governor of Oyo State, Seyi Makinde, at the governor’s office, Ibadan, on Thursday, Umahi decried an instance where the National Assembly approves the sum of N150 million for a road project that requires the sum of about N10 billion and attaches an unrealistic completion date.
Rather than an inadequate allocation of funds for a project, Umahi said he would prefer an aggregation of funds to face a particular project squarely or allocate a lump sum for a project and phase it over time.
A matter he said he would be taking up with the National Assembly, he said he had to deal with a 2023 budget where the funds approved for a budget were inadequate while the federal government had to deal with the pressure of completion of a project.
While promising a redesign of some of the projects already awarded, he held that he would prefer handling projects whose lifespan does not exceed the tenure of an administration.
He said: “Our budgetary system in the country is not very good. There is no way you will have a project of N50 billion, N60 billion and you are not facing it and allocating about N2 billion and putting a completion period that is not realistic. That is not good enough.
“By right, no road project awarded should go beyond the lifespan of that administration. Any road project going beyond four years will attract a lot of variations and fluctuations. I am taking this matter up with the National Assembly. “Before me is the 2023 budget where you have a N10 billion project and you put N150 million. I can’t award such a project. We have to sit down and discuss this because when you award it, you put a lot of pressure on the federal government; you tell your story, but the federal government is unable to tell its story. If it is N150 million you can do every year, then we aggregate it to N600 million, by the standard of the federal government, that is, less than a kilometre.
“So, we award the one kilometre and face it. If it is N10 billion, then we phase it into 10 phases so we can tell our own story at the same time.”
While restating the mid-September completion date for the Lagos-Ibadan expressway, Umahi, however, noted that there were interchanges, flyovers, drainages, and access roads that will not be ready until November.
He declared that the Lagos axis of the road, handled by Julius Berger, was about 98 per cent done while the Oyo State axis, handled by RCC, was about 88 per cent done, but assured that work was ongoing.
He noted that the Ogun State government had to deal with issues of paying compensation in some areas where it was to site the interchanges.
Umahi added: “The Lagos axis handled by Julius Berger is about 98 per cent done, what is left is Ogun state and that is the interchanges and payment of compensation at those locations by the Redemption Camp.
“We want to clear the traffic there, we will build flyovers. We need the governor of Ogun State to pay compensation but the pavement will be fully completed by mid-September and by November, the rest will be done.
“We have two sections; the first section by Julius Berger is about 98 per cent done; the second section by RCC is about 88 per cent done but the work is ongoing. Hopefully, the major highway will be done by mid-September and other little works like drainages, interchanges, and access roads are not a major issue and will be completed by November.
“The axis of Oyo State, we can say we have done about 88 per cent. Work is going on and it is done by RCC. We may have a little issue with the funding but we had a meeting yesterday with the Chief of Staff and I am just reading through the minutes on how we can go about it. We will tackle that.
“We have decided as a ministry to redesign some of the roads to be concrete. Funding remains an issue. We have over 50,000 kilometres of roads that are very cogent all through the country.
“So, it is not just possible with other contending priorities of the federal government to engage all these projects at the same time. When I finish the tour, I will assess what we have, see the funding we have and be able to report to Mr. President.”
Lamenting the challenge of funding to attend to over 50,000 kilometres of roads across the country, Umahi said the present economy of the country would not permit the state to refund states that do federal roads.
He noted that the ministry would only have a record of such road engagements and harmonise with the state governments regarding payment when the economy improves.
He held that states and the federal government alike had a responsibility to attend to roads and other issues that touch on the welfare of the people. He said:
“Let me commend you for the jobs you are doing here. When I see examples of what I am preaching, in terms of alleviating the sufferings of the people, whether federal or state roads. I have seen a number of roads and you are not saying you must have all the approvals before doing it.
“Let me make it very clear that our economy right now will not permit any commitment of the federal government to repay states that are doing federal roads. It is still one government and the aim of government and the oath of offices sworn to is to place the welfare of the people ahead of any other interest.
“So, when I see governors that are doing exactly that, like governor Seyi Makinde, I commend him very highly. But, we can all keep the records of the federal roads done by the states. When the economy starts to breathe, we can revisit that.
“If you are waiting for due process by the federal government saying it will refund, such will not be done but is the people that are suffering.
“So, I want to make it very clear that my commitment may not be to guarantee that there will be repayment but I will guarantee to take the records and when the people are smiling, both the states and federal government can revisit the matter and that is what the governor here is doing and we are excited.”
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