The Minister of Works and Housing, Babatunde Fashola, has stated that Nigeria needs N1.2trillion for roads and bridges but the government is only able to provide N198.9 billion.
Fashola, while appearing to defend the budget of his ministry before the House of Representatives Committee on Works on Tuesday, lamented the disparity between the cost of highways and the envelope budget provided by the government.
He stated that in some instances, FG provides N100 million for roads that cost over N20billion.
“There is the inadequacy of annual budget provisions where N100M or N200M was provided for roads costing twenty or more Billion,” Fashola said.
Fashola stated that “the actual 2023 indicative cost of execution of highway projects is N1,256,290,524,288.32, and the actual Budget Envelope of N198,964,003,907.00,” he said.
He added that the disparity has huge debt owed to road contractors. According to Fashola, the government owes contractors over N700 billion.
“The Ministry has a cumulative unpaid certificates in the sum of N765,017,139,752.92 for ongoing highway and bridge projects,” the former Lagos State governor said.
He informed the lawmakers that the government made interventions in various tertiary Institutions in the Country, completing a total of 85.46km roads.