It is childish to query federal government loan borrowing and last minute contract awards—Fashola

Minister of Works and Housing, Babatunde Fashola has expressed shock at the questioning of the President Muhammadu Buhari-led government awarding of contracts towards the expiration of the tenure of office.

He queried if those asking such question were not aware of the budget passed by the National Assembly for the administration to implement.

Speaking at the flag-off ceremony of Akure/Ado-Ekiti dualization and construction of the deplorable road in Akure on Thursday, Fashola described the argument as juvenile.

He said: “We have given Ondo and Ekiti states as closed to what they want possible, not only we have terminated the contract, it was not that the contractor was not competent, it was because the Sukuk funding did not pay the mobilization fees.

“The work looks so easy from outside, but one decision leads to other consequences, but we have now given you contractors who are ready to work with you.

“The main reason why I chose to come here today is for me to discuss what are the serious developmental issues.

“This road really represents the paradox about governance, roads and public debts. First of all, road does not last forever and once the road reaches the end of its life, it would begin to fall apart and there is nothing you can do again, you need to reconstruct it.
“All lies against me that I did not like Ekiti, Ondo states are absolutely nonsense. We are going to dualize this road and reconstruct which we have to do the redesigning which had taken us some times. But, now it is time to do it.

“Some people are saying that why are we still awarding contracts few days to go, but they have forgotten that tenure of this present administration ends at the midnight of 28th May, 2023 and when it is 12am, the President-elect, Bola Tinubu takes over the government and that is why we are still working.

“They forget that you the people of Nigeria through your representatives have passed a budget for us to implement.

“Some people are still saying why are they borrowing few days to their expiration, it’s because we don’t have enough money and people want infrastructure. If you don’t want borrowing, that means government will increase your taxes because that is another way to pay the deficits and that is how it is done in any part of the world.

“So this road is going to cost over N90billion, we want the road and we are saying that Buhari’s administration is borrowing money, who is now going to give us money to do it?.

“Some states are borrowing money outside the country, still they will pay it back. So this road is not funded by debt, it’s funded by a policy of Buhari’s government called ‘Tax Credit Policy’, where the private sectors invest their tax in advance and it is paid back later. So, what it means is that Federal Government has agreed to sorurce for other revenue to have a road. But that policy is working.

“I’m also here to tell you that we will be leaving behind sustainable development here whether we are still in the office or not. This road will be built because NNPC through the tax credit has committed to fund it.

“Two days ago, I signed the advance payment guarantee request for the release of the money to the contractor. Now that we have done all the processes, contractors have started moving around to talk to those that will supply them materials to use for the construction. So, we are constructing this road afresh.

“I want to appeal to the host communities, especially the state government of Ondo and Ekiti, that we cannot build a road without the right of way, so we need land, it may affect some buildings, shops, farm and others.”.

Ninety six hours to end of this regime the president is still borrowing billions of naira and dollars, awarding contracts and making last minute appointments that ordinarily would have been left in the hands of the incoming administration.