Thursday, 17 September 2015

FG approves N535.5b reimbursement to states for Road projects

The National Economic Council (NEC) meeting on Thursday approved the reimbursement of N535.5 billion to states for the expenses incurred on Federal roads.

Oyo State Governor, Abiola Ajimobi disclosed this to State House correspondents at the end of the meeting chaired by Vice President Yemi Osinbajo.

He was accompanied to the briefing by governors Abdullahi Ganduje (Kano), Samuel Ortom (Benue) and Ifeanyi Okowa (Delta).

Ajimobi said: “Another issue discussed is on refund of expenses incurred on repair of federal roads by states. As listed here, we have 13 states that have fully complied with the reimbursements requirements, we have eight states that have partially complied, 21 states without compliance and the total sum of claims to be reimbursed is exactly 535, 596, 386, in other words, N535.5 billion.”

He said N13 billion has been disbursed to states as at 2013 and that the challenges faced had to do with inadequate funding in the ministry.

He also disclosed that 26 state governments have applied for restructuring of their bank loans amounting to N500 billion.

While 11 of the states have concluded and submitted all relevant documents, he disclosed that 13 states are involved in the second phase that will commence soon.

He added: “The other major item that was discussed had to do with the restructuring of bank loans to state governments, and the restructuring was done into Federal Government bonds and the DG of DMO reported as follows: That 26 states applied for the loans, 11 states have concluded and submitted all relevant documents and 13 states are involved in the second phase to commence immediately. The total money involved in the restructuring stood at over N500 billion.”