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Reps Raise Alarm over N300bn Owed Contractors

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Reps Raise Alarm over N300bn Owed Contractors
Reps Raise Alarm over N300bn Owed Contractors
EditorBy

Reps Raise Alarm over N300bn Owed Contractors

By Editor

Members of the Nigerian House of Representative  have raised alarm over more than N300bn in debts the Federal Government owes road contractors.

  The House Committee on Works said many contractors have abandoned sites or slowed down work while waiting for payment.   Committee Chairman Toby Okechukwu, speaking in Abuja, said funding remains the biggest challenge the road sector will face next year. He said government and contractors must review their roles in the projects.   “We are talking about debts on road projects in excess of N300bn. The first challenge is funding,” he said. He noted that government must assess what it owes and how contractors performed in return.   Lawmakers criticised the 2015 budget for allocating only N11bn to the road sector, calling it “paltry.” They said such an amount cannot clear outstanding debts or fund new projects.   With oil revenue dropping, Okechukwu said government can no longer fund road projects alone. He called for a review of road infrastructure laws to attract private-sector investment.   “We should take PPP seriously. It is a business investment, not a political favour. Investors won’t allow it to fail,” he said.   He noted that with less than two months to the end of the year, lawmakers still have no information on the 2016 budget. The Medium Term Expenditure Framework, expected since September, has yet to reach the National Assembly.   “This delay will affect road funding. It is tragic considering the poor state of our roads,” he warned.   Okechukwu also urged government to sell assets seized by the EFCC instead of letting them waste in custody. He said government should deposit the proceeds in banks or invest them in profitable ventures while court cases continue.         Also Read: Japan and South Korea Seek to Ease Impact of U.S. Tariffs

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