We’ll continue work on Lagos-Ibadan expressway, second Niger bridge ―Fashola

MINISTER of Power, Works and Housing, Babatunde Fashola on Tuesday disclosed that the Federal Government will continue work on Lagos-Ibadan expressway and Second Niger Bridge without previous agreements on the concession. 

The minister spoke when he appeared before House Committee on Works over the non-completion of the 2nd Niger Bridge and the Lagos Ibadan Express Way maintained that “nobody can ask us to stop working on the projects because you can’t ask Government to stop work but Government can ask you to keep your money”.

The committee’s two-day investigative hearing was chaired by Honourable Toby  Okechukwu.

The Minister observed that most of the partners involved in the concession of the Second Niger Bridge have pulled out, adding that those who participated did not have an adequate fund to implement the project, hence the resolve to use available budgetary allocation for the project.

While stressing the need for prioritization of critical projects of economic importance, the Minister noted that most of the investment inflows into the country during the property period were portfolio investment into oil and gas as well as the capital market.

He said that the Lagos-Ibadan expressway contract was cancelled in 2012 following the inactivity of the concessionaire, adding that the sum of N29 billion was spent on the Lagos-Ibadan expressway project.

He, however, noted that subsequent efforts made in 2017 to increase budgetary provision for the project were stalled sequel to the reduction in the proposed budget of N31 billion to N10 billion, while the Ministry had issued N15 billion certificate of completion to the contractors handling the project.

According to the Ministry, plans are underway to include Abuja-Kaduna on debt financing in the nearest future, adding that the proposed Greenfield Abuja-Lagos dualization contract has been kept in view pending the completion of major ongoing projects.

While responding to question on the utilisation of $1 billion from the Foreign Reserve, Fashola noted that the improvement of Nigeria’s foreign reserve has boosted the manufacturing sector performance from below 50 percent to 70 percent, according to the PMI for 2017 financial year.

He also reiterated commitment to ensure that efforts are intensified for the speedy signing of the relevant bills on road infrastructure to the law when the National Assembly transmit it to the Presidency.

Also while declaring open the two-day investigative hearing open the speaker represented by the Deputy Minority Leader, Honourable Chukwuka Onyema, Dogara said that the investigative hearing became critical given that the projects were constant and ugly features in the national discourse.

He said proactive steps must be taken to ensure early completion of the projects as they constitute a vital arterial network for the country’s road transport system.

According to him, “They have become media sensations and highly politicized to the extent that it now seems that we are playing games with the lives of our people.

“Past administrations have celebrated progress ostensibly made on them while achieving little or nothing in reality,’’ Dogara said.

According to the Speaker, the House observed that contracts for the construction of the projects continued to feature in annual budgets without any seeming signs of their completion or the amount required to do so.

“The Minister for Power, Works and Housing stated that funds for the projects in 2017 Appropriation Act were reduced, so they run the risk of becoming white elephant projects because they are not under concession or Public-Private Partnership (PPP) arrangement.”

He added that the manner of execution of the projects was not in accordance with defined methods for executing projects.

“The Nigerian Sovereign Investment Authority had spent about N18 billion on the Second Nigeria Bridge as the financier during their early stages.

“As a result of these observations, the House, by resolution, urged the Federal Ministry of Power, Works and Housing to provide funds in the 2018 budget for the completion of the projects,’’ the Speaker said.

Dogara said that the Lagos-Ibadan Expressway had become a subject of litigations as the government vacillates between executing it through a PPP arrangement and direct funding through appropriations.

“Unfortunately, the same affliction is seeping into the execution of the Second Nigeria Bridge.”

“If the House of Representatives, in its oversight responsibility, does not step in at this time, we run the risk of continuing this path and the rehabilitation of Lagos-Ibadan Expressway will remain a mirage and the Second Niger Bridge will never get constructed,’’ Dogara noted.