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FG Refunds N148bn To Five States

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The Federal Executive Council (FEC) has approved the refund of a total of N148,141,987,161.25 to five states to cover the amounts spent by the states on federal road projects.

The Minister of Information and Culture, Alhaji Lai Mohammed made this known to State House Correspondents after the virtual Federal Executive Council meeting held on Wednesday.

Mohammed said the five beneficiary states in the approved memo were Cross River, Ondo, Osun, Bayelsa and Rivers.

A breakdown of the refunds, per state, were as follow: Cross River N18,394,737,608.85; Ondo N7,822,147,577.08; Osun N2,468,938,876.78; Bayelsa N38,040,564,783.40 and Rivers N78,953,067,518.29.

“You will recall that in 2016, 36 states of the federation sent a very huge bill to the federal government, asking for compensation for money that they have expended on federal roads.

“This prompted Mr. President to set up a committee to go and verify the claims of these 36 states, whether indeed these projects were actually constructed, were they completed, in line with the federal government standards.

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“At the end of that exercise by an inter-ministerial committee, chaired by the Honorable Minister of Works and Housing, but also had ministers of Education, Transportation, Finance, Minister of State for Works, DG, BPP and Permanent Secretary of the Cabinet Office as members.

“At the end of that exercise, the committee recommended that the federal government should refund N550,364,297.31 billion to 31 of the 36 states, after they were convinced that, yes indeed, the projects were completed and there were federal government roads. But the claims of five other states Cross River, Rivers, Ondo, Bayelsa and Osun failed on the grounds that they did not do proper documentation and the committee felt they needed proper documentation.

“So the committee went back with a new terms of reference to ensure that the claims of the five states were in order, that is why the BPP is on the committee. So at the end of the exercise, the committee now reported that the five states – Cross River with 20 roads and one bridge will get a refund of N18,394,737,608.85, Ondo with six roads to get a refund of N7,822,147,577.08, and Osun with two roads and one bridge to get a refund of N2,468,938,876.78.

“Others are Bayelsa with five roads and one bridge is to get a refund of N38,040,564,783.40 and Rivers with three roads and three flyovers bridges is to get a refund of N78,953,067,518.29,” Mohammed explained.

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