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FG To Spend N7.4trn On 854 Highway Projects Across Six Geo-political Zones – Fashola

FG Financing 44 Road Projects With Sukuk Funds, Says Fashola

The Federal Government has stated that it will be spending the sum of N7.43 trillion on 854 highway projects across the six geo-political zones in the country.

Minister of Works and Housing, Babatunde Fashola, stated this on Wednesday during his defense of the ministry’s budget before the house of representatives committee on works.

He noted that the projects were expected to be funded through the Presidential Infrastructure Fund, Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme (RIDRITCS), the sovereign Sukuk fund, and multilateral loans.

He stated that the target of the 2022 budget was on the completion of some priority road projects, especially those on route A1-A9.

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Route A1-A9 are roads and bridges that lead to the ports and major agricultural hubs attracting vehicles carrying heavy goods in the zones.

“In view of the wide disparity between the actual 2022 indicative cost of execution of highway projects of N1,384,622,535,379.62 and the actual budget envelope of N282,636,433,510.69, the prioritization of funding in the 2022 budget becomes imperative in order to make an appreciable impact,” Fashola said.

“Accordingly, the focus of the 2022 Budget proposals of the Ministry is on completion of some priority road projects, especially those on Route A1-A9.

“Secondly, the Ministry has identified some strategic road projects that have already attained some appreciable percentage completion and slated them for completion within the period 2021-2023.”

Fashola while presenting the ministry’s N450 billion 2022 budget proposal, stated that from the total amount, N382 billion was for capital expenditure; N627 billion was for overhead and N10 billion was for personnel cost.

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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