FG to Raise Bonds to Settle Billions Owed States on Rehabilitation of Federal Roads

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    Christopher Isiguzo in Enugu

    Minister of Power, Works and Housing, Mr. Babatunde Fashola, SAN has disclosed that the Federal government would raise bonds to refund billions of naira owed states which have spent their money in rehabilitating federal roads in their respective domains.

    He spoke during his courtesy call on Governor Ifeanyi Ugwuanyi at the weekend in Enugu, where the governor appealed to the federal government through him (minister) to refund over N25 billion which Enugu State government expended in rehabilitating the federal roads across the State.

    The governor, represented on the occasion at the Government House, Enugu by his deputy, Hon. Mrs. Cecilia Ezeilo, told the minister that in the face of the dilapidating federal roads infrastructure in the South-east region, the people of the area continued to suffer untold hardship.

    The minister, who was in Enugu to inspect some federal roads in the State, stated that the federal government has carefully assessed the various claims by the concerned state governments and has concluded arrangement to refund the money through the said bonds.

    Fashola shed more light on Enugu government’s intervention on federal roads, adding, “we have also been briefed about your intervention on certain roads that are our roads and I and your Commissioner have discussed about the outstanding claim from the federal government, and my message from the federal government is that we have completed the assessment of all these claims and the total amounts owed the States far exceed the total amounts as to the whole country.

    “The plan of the federal government is to issue bonds to pay those monies and then we pay the bonds back over time”, he stated.

    He urged the State government to assist the contractors handling federal roads in the State to secure the right of way, informing that they have been re-mobilised to sites.