Home NEWS Federal Govt Agrees To Refund Over N148 Billion To Cross River, Ondo,...

Federal Govt Agrees To Refund Over N148 Billion To Cross River, Ondo, Other States

Information Minister, Alhaji Lai Mohammed

The Federal Government has agreed to refund a total sum of N148,141,987,161.25 to Cross River, Osun, Ondo, Rivers and Bayelsa States for the funds they expended on federal roads in their respective states.

While Cross River State is to be refunded N18,394,737,608.85, Ondo State will get N7,822,147,577.08, even as Osun State will be refunded N2,468,938,876.78. Bayelsa State is to get N38,040,564,783.40 and Rivers State to get N78,953,067,518.29.

A memo to that effect was presented to the third virtual Federal Executive Council (FEC) today, June 3, by the Minister of Works and Housing, Babatunde Fashola.

Briefing news men shortly after the meeting, the Minister of Information and Culture, Lai Mohammed, said that council warned that there will be no reimbursement in future should any state government venture into such projects without the nod of the government at the centre.

“You will recall that in 2016, 36 states of the federation sent a very huge bill to the federal government, asking for compensation for money that they have expended on federal roads. This prompted Mr. President to set up a committee to go and verify the claims of these 36 states, whether indeed these projects were actually constructed, were they completed, in line with the Federal Government standards.

“At the end of that exercise by an inter-ministerial committee chaired by the Minister of Works and Housing but also had ministers of Education, Transportation, Finance, Minister of State for Works, DG BPP and Permanent Secretary, Cabinet Office, as members.

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“At the end of that exercise, the committee recommended that the Federal Government should refund N550,364,297.31bn to 31 of the 36 states, after they were convinced that, yes indeed, the projects were completed and there were federal roads. But the claims of five other states Cross River, Rivers, Ondo, Bayelsa and Osun failed on the grounds that they did not do proper documentation and the committee felt they needed proper documentation.

“So the committee went back with new terms of reference to ensure that the claims of the five states were in order, which is why the BPP is on the committee. So at the end of the exercise, the committee now reported that the five states – Cross River with 20 roads and one bridge will get a refund of N18,394,737,608.85, Ondo with six roads to get a refund of N7,822,147,577.08, and Osun with two roads and one bridge to get a refund of N2,468,938,876.78.

“Others are Bayelsa with five roads and one bridge is to get a refund of N38,040,564,783.40 and Rivers with three roads and three flyovers bridges is to get a refund of N78,953,067,518.29.”

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