Minister of Works and Housing, Babatunde Fashola, on Friday disclosed that the federal government is indebted to contractors to the tune of about N420.5 billion for construction of roads across the country.
The minister who appeared before the Senate Committee on Works said the outstanding payment underscores efforts of President Muhammadu Buhari’s administration.
He said the ministry is looking for other means of funding PIDF, Sukuk, Tax Credit, HDMI for highway development.
Fashola said, “The major challenge to the ministry’s efforts towards the timely completion of projects is insufficient budgetary provison and releases for projects to sustain annual cash-flow requirement levels.
“The total outstanding for payment to contractors for duly certified and approved projects as at 20th October, 2021 is N420.5 billion.
“This underscores the efforts of the Federal Government of Nigeria (FGN) under this administration, to secure several alternative sources of funding for highway development.”
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