FG owes contractors N11.16 trillion- Fashola

The Federal Government has confirmed that it currently owes contractors N11.16 trillion in road construction projects and certificates of completion.

This was disclosed by Babatunde Fashola, the Minister of Works and Housing, when he appeared before the Senate to defend his ministry’s 2023 budget.

Fashola told the Senate that his Ministry has awarded 1,642 highway contracts for 1,632 projects at a total sum of N10.395tn.

“The main challenge to highways development in the country remains inadequate funding. As at date, the government is committed to highway contractors to the tune of about N10.4tn, while a total of about N765bn are unpaid certificates for executed works.

“Secondly, the shortage of younger engineers/technical officers in the ministry as a result of embargo on employment is affecting proficient project supervision at the sites. It is expected that more sources of funding of highway projects be explored as well as lifting the embargo on employment of needed engineers/technical officers at middle level to enhance supervision of projects.”

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