2017 Budget: FERMA gets N800m out of N25b

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Out of the N25billion budget of the Federal Roads Maintenance Agency (FERMA), only N800million has been received, the Minister of Power, Works & Housing, Babatunde Fashola has said.

  Briefing members of the Senate Committee on Federal Roads Maintenance Agency (FERMA) on Thursday, the minister explained that the reintroduction of toll gates by the Federal Government will be consummated after completion of major highways.

  He also disclosed that the N100 billion sourced through the Sukuk Bond was yet to be released to his ministry to carry out 25 major road constructions in the six geopolitical zones of the country.

  He said arrangements have been concluded to reintroduce toll gates in 38 points across the country, Power, Works & Housing Minister Babatunde Fashola said yesterday.

  According to him, the toll gates are to be managed by the private sector, adding that  plans are underway  by the government to design software for the monitoring of vehicles passing through the roads.

 He explained that road users would be able to pay toll through their phones, explaining that the toll collected would be used for maintenance of the highways.

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Explaining further, he said:“We have concluded plans to reintroduce toll gates across the country and we have finalised the design.

“It will be managed by private sector and it will be located in the old places, 38 point across the country “We are only waiting for the completion of those roads before we introduce the toll gates.

He appealed to the Committee to revise procurement law in order to fast track contract approval by the government.

 He admitted that the worst roads are located in the Southsouth and Southeast geopolitical zones, adding that an audit of bad roads showed that some of the roads were built before the 1967-1970 civil war.

   Fashola said: “FERMA can be the largest construction company in the country. It depends on what we are willing to put into the agency. In the past, FERMA collected monies for roads they did not construct. That has to stop in this government.

“We are working with the Army Corps to see how we can develop local content. FERMA can be biggest construction firm. The unemployment challenges we have can be reduced if FERMA is busy is every state.”

In his remarks, FERMA Committee Chairman Senator Magnus Abe said: “As elected representatives of the people, if the Federal Government is doing anything in your areas, our inputs are hardly needed. We will then have to fight for relevance”.
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