FG Gets N16bn Tax Credit For Lagos-Badagry Expressway

The Minister of Works and Housing, Babatunde Fashola has reacted to the ultimatum issued by the Governor of Ogun State, Dapo Abiodun as regards fixing the Sango/Ota-Abeokuta.

Fashola in his reaction on Monday noted that no state can give Federal Ministry of Works and Housing an ultimatum to fix a federal road.

The minister further stated that the Federal Government had got N16bn tax credit for the construction of the Lagos-Badagry Expressway.

Fashola stated this when visited by a delegation from Punch Newspapers.

Recall that Governor Abiodun on Saturday gave the Federal Government an ultimatum of two weeks to fix the Sango/Ota-Abeokuta road.

The Ogun State warned that its administration would take over the project if the Federal Government fails to fix the road.

Abiodun gave this warning shortly after inspecting some bad portions of the 52.5km road in Ewekoro axis on Saturday.

He noted that his administration would not fold its hands while the people of Ogun State suffer for the negligence of the Federal Government.

Abiodun said, “If after two weeks, the Federal Government refuses to commence work on this road, I will take it over and reconstruct it.”

Fashola, however, in his reaction to the ultimatum said, “I don’t take ultimatums from any state. I take ultimatum from the President, my employer.”

Asked whether the ministry would allow the state to handle the project, the minister replied, “Go and read the Federal Highways Act and see what it says about the management of federal roads. Can I take over a state road?”

On concerns about the delay in the construction of the Lagos-Badagry Expressway, the minister explained that the speed of work on that road, as well as some others, were dependent on the funds available for such projects.

He, however, noted that the Federal Government had got a N16bn tax credit for the Lagos-Badagry road and that work was progressing on the expressway currently.

Fashola said, “I was there about four weeks ago. But first of all let us understand; that road is about 60km plus, so before you start validating what people said, it is important for us to understand how democracy works.

“The executive proposes the sum, parliament approves it. So if the parliamentarians decide that it is their constituency that takes preeminence over the state, so be it.

“You are complaining about debt, where do you think money is going to come from to build the Badagry road? So that is why there was no progress on it in the past.”

He added, “But the reason why there has been progress now on that road is because we got tax credit for it, I think N16bn. But the total contract price is about N20bn plus. However, with N16bn go and see what has happened there.”

On the Lagos-Ota road, Fashola said the contract was over N50bn, “but go and look in the budget and see how much is there (for the road), may be N200m.”

He added, “It is us that got Sukuk this year of N7bn and so they working as the money allows them. And if we go and borrow you will complain. That Sukuk is debt. On Second Niger Bridge we are using 19 million litres of diesel supplied by Nigerians.”