The Nigerian Senate has summoned the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed to appear before it to explain the funding status of three federal government legacy road projects estimated to cost N2.7 trillion.
Also summoned by the senators alongside Mrs Ahmed are the Minister of Works and Housing, Mr Babatunde Fashola; Accountant General of the Federation (AGF) Ahmed Idris and the Nigeria Sovereign Investment Authority (NSIA) Managing Director, Mr Uche Orji.
The Chairman, Senate Committee on Finance, Senator Solomon Adeola asked them to appear before the committee in two weeks time, after the panel’s interactive session with Orji, in Abuja on Tuesday.
Orji had appeared before the committee to speak about the legacy road projects, which are the Abuja-Kano road, Lagos-Ibadan expressway and the Second Niger Bridge.
He told the panel that the Nigerian government established the Presidential Infrastructure Development Fund (PIDF) in February 2018, to accelerate the execution of “certain critical, strategic infrastructure projects essential to the rapid growth and modernization of the nation’s economy.”
Noting that the PIDF is being managed by the NSIA to develop the Lagos-Ibadan Expressway, Second Niger Bridge Project, Abuja-Kaduna-Zaria-Kano road, Mambilla Hydro-Power Project and the East West Road, Orji said that the cost of the projects were estimated to be N2.7 trillion.
On the sources of funds for the projects, he said they include the Federal Government’s initial seed funding of $650 million transferred to PIDF in 2018, N90 billion transferred by the Ministry of Finance to PIDF in 2019 and $311 million recovered funds transferred to the PIDF in 2020.
He added that the NSIA was to provide $300 million, China Exim N1.423 billion, second seed funding $650 million and other sources (local and international financial institutions) $770 million.
According to Orji, the NSIA had so far expended the sum of N231.8 billion on the three projects as follows: Lagos-Ibadan (N60.9 billion), 2nd Niger Bridge (N100.6 billion) and the Abuja-Kano road (N70.1 billon).
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Further noting that the PIDF was being utilised in the construction of the Lagos-Ibadan expressway, Second Niger Bridge and the Abuja-Kano road, NSIA boss said the construction contracts were executed between the Federal Ministry of Works and Housing (FMWH) and the contractors before they were transferred to the PIDF.
“Therefore, all information and documentation relating to the projects prior to the handover should be sought from the FMWH,” he added.
Orji also said that the debts of the three legacy road projects remained the responsibility of the FMWH.
But the lawmakers, who disagreed with his explanations, wondered why Orji would claim that the projects were being managed by the NSIA but NSIA refused to inherit the assets and liabilities of the projects.
Based on this, Adeola asked that Ahmed, Fashola and Idris be summoned to appear before the Committee alongside Orji in two weeks’ time to give more clarification on the status of funding for the projects and the issue of legacy debts.
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