FEC Approves N15.7b For Ibadan-Lagere-Ilesa, Others

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  • FEC Approves N15.7b For Ibadan-Lagere-Ilesa, Others

The Federal Executive Council has approved N15.7 billion for the final work on Ibadan-Lagere-Ilesa road linking Oyo and Osun States and Suleja-Minna-Labata road in Niger State.

Mr. Babatunde Fashola, the Miniset of Works and Housing, disclosed this during State House Correspondents briefing on Council meeting presided over by President Muhammadu Buhari.

The Minister said N12.6 billion of the total approved amount was for the completion of Suleja-Minna-Labata road, while N3.1 billion was approved for the completion of Ibadan – Lagere – Ilesa bye-pass road.

Fashola said: “Two contracts were approved. The first one is the Ibadan-Lagere-Ilesa, 22 kilometers, the contract was first awarded in 2010, without budgetary funding and the rates have become obsolete so the contractor wants new rates and that has necessitated a revision of the rates by N3.165 billion and that means the old contract price of N6.7 billion has now moved to N9.8 billion.

“The same is true of the Suleja-Minna-Lambata road, covering a total of 101 kilometers, it was awarded in two phases, the first phase was awarded I believe in 2010, 40 kilometers, and then the second phase covering 61 kilometers, was awarded in March 2015 but they used the 2010 rate.

“So, the contractor is now saying he cannot continue that way because those rates are unsustainable.

“So, we recommended that the revised rates be considered and the Federal Executive Council approved that. Now it’s a revision by an addition of N12.6 billion so the contract sum now moves from N23.6 to N36.2 billion.’’

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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