FG Refunds N859.7bn to States for Constructing Federal Roads

The Nigerian Federal Government has refunded a total of N859.7bn to various state governments for expenses incurred while constructing federal roads over the past eight years.

The Presidency recently disclosed this in a fact sheet, which highlighted the achievements of the Buhari administration.

This reimbursement is aimed at improving infrastructure in the country, as state governments have been intervening in federal roads to provide necessary infrastructure for their citizens. However, there have been reports of the inflation of costs for repair works by state governments.

To curb this, the Minister of Works and Housing, Babatunde Fashola, directed states to desist from such interventions. He stated that the Federal Government would not offset such expenses, and any state that takes on federal government roads without permission would not receive any refund.

Despite this directive, the Federal Government has continued to make payments to state governments. In 2020, N148bn was given to five states for the reconstruction of some federal roads, while in 2021, N143bn was refunded to five states that constructed federal roads.

In 2022, N477bn was paid to 24 states as refunds for the construction and rehabilitation of federal roads. And already in 2023, the Federal Executive Council has approved N152.6bn to be paid to seven states for road projects executed on behalf of the federal government.

However, there is a need for transparency and accountability in the reimbursement process to prevent the inflation of costs and ensure that taxpayers’ money is judiciously utilized.

Additionally, the Federal Government should consider engaging with state governments to develop a sustainable framework for constructing and maintaining federal roads in the country.