Babatunde Fashola, the Minister of Works and Housing, has reiterated that President Muhammadu Buhari will continue to award contracts until the official conclusion of his administration.
Fashola made this statement while attending the groundbreaking ceremony for the dualization of the dilapidated 49 kilometers Akure/Ado-Ekiti highway in Ondo State on Thursday.
The Federal Government recently faced criticism and raised eyebrows when it was revealed that contracts were still being awarded less than a week remaining before the handover. However, the government defended its actions, citing constitutional obligations that mandate the performance of duties until May 28.
Responding to the concerns and criticism, Fashola expressed his perspective on contract awards and external borrowing by the current administration. He emphasized that the federal government would continue awarding contracts until the “last hour.”
“Buhari can award contracts until the last minute. So, we will work till the last minute. Those criticizing us are ignoramus,” Fashola said.
“Some people are saying that why are we still awarding contracts with few days to go, but they have forgotten that the tenure of this present administration ends at midnight of May 28, 2023, at 11.59 pm and when it is 12 am, Bola Tinubu takes over the government and that is why we are still working.”
Addressing the issue of borrowing, Fashola explained that the government is investing borrowed funds in infrastructure to facilitate national development.
He highlighted the necessity of borrowing in order to meet the demands for infrastructure while avoiding tax increases.
“Some people are still wondering why we are borrowing a few days before our expiration. It’s because we don’t have enough money, and people want infrastructure,” Fashola clarified.
“If we avoid borrowing, it would mean increasing your taxes because that is another way to pay the deficits, and that is how it is done in any part of the world.”
Regarding the Akure/Ado-Ekiti highway project, Fashola revealed that it would cost over N90 billion. He emphasized that the project is not financed by debt but rather through a policy initiated by President Buhari known as the “tax credit policy.”
Under this policy, the private sector invests its tax in advance, and the funds are reimbursed later.
Fashola assured the public that sustainable development would be achieved, whether or not the administration remained in office. He mentioned that the Nigerian National Petroleum Corporation (NNPC), through the tax credit mechanism, had committed to funding the project.
In his remarks, Governor Rotimi Akeredolu of Ondo State, represented by the Commissioner for Lands and Infrastructure, commended Minister Fashola for initiating the project and appealed to the residents of both states to cooperate with the contractors.
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