Nigeria

2022 Budget: House mulls N500 billion increase for road infrastructure

4. The House of Representatives yesterday, approved President Muhammadu Buhari’s request for ongoing external loans to the tune of $8,325,526,537 (USD) and €490,000,000 (Euros) under the 2018-2020 External Borrowing (Rolling) Plan.

Rep. Abubakar Kabir, Chairman, House of Representatives Committee on Works, has underscored the need for an upward review of the proposed allocation for the execution of various road projects across the country.

Kabir said this during the debate on the general principles of the 2022 budget estimates on Wednesday in Abuja.

This is against the backdrop of the 2022 Appropriation Bill presented by President Muhammadu Buhari before the joint session of the National Assembly.

Newsmen report that N481,964,861,868 was proposed for the Federal Ministry of Works and Housing in the 2022 budget.

The lawmaker, while expressing concern over the state of federal roads and the need for adequate funding, said there was the need to upscale the budget for the ministry of works.

According to him, the proposed budget showed that the sums of N15,050,141,513 is for personnel; N16,885,462,684 for overhead; and N450,029,257,671 is for capital expenditure.

He pointed out that the allocation to the Ministry of Works was inadequate, adding that only N280 billion was allocated in the 2022 budget.

He added that currently, the country had about N640 billion certificates owing contractors.

“So, if we apply N280 billion against N640 billion for our outstanding certificates, that means in 2022 there is nothing we can see in any road infrastructure such as bridges and construction of roads.

“Of course the President has done very well in terms of initiation of SUKUK, NSIA, HDMI, they are doing very well.
“But honestly we need more funding, at least an additional of N500 billion for massive development in road infrastructure,” he urged.

He also called for the adoption of the policy on Tax Credit Scheme, where companies would be allowed to develop road infrastructure with tax holidays to the tune of the cost of the project.

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