Nigeria Releases N100bn to Road Contractors

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Power, Works and Housing Minister, Babatunde Fashola

The Federal Government of Nigeria on Thursday completed the process required for the funding of the reconstruction and rehabilitation of 25 priority road projects across the six geopolitical zones.

The Federal Government raised the funds through the issuance of Sukuk bonds. Sukuk bonds are Islamic bonds, structured in such a way as to generate returns to investors without infringing Islamic law that prohibits “riba” or interest. Sukuk holders are entitled to a share in the revenues generated by the Sukuk assets.

The ministers of Power, Works and Housing, and Finance, Babtunde Fashola and Kemi Adeosun, as well as the Director-General, DMO, Patience Oniha, met with heads of about 10 construction companies in Abuja on Thursday, where Adeosun presented the N100bn cheque to Fashola for the projects.

The Minister of Power, Works and Housing, Mr Babatunde Fashola said with the release of the funds, contractors had no excuse to delay the execution and completion of projects.

The North Central has five projects which are the dualisation of Lokoja-Benin road, Abuja-Abaji-Lokoja road section one, three and section four and Construction of Oju-Loko-Oweto Bridge over River Benue. Also, the North East has four projects namely the dualisation of Kano to Maiduguri road section two, three, four and five. Similarly the North West region has four projects namely the Dualisation of Kano to Katsina road phase one, dualisation of Suleja to Minna roads in Niger state, Phase two, Construction of Kano Western bypass and the construction of Kaduna Eastern by-pass road.

Four projects would benefit from the South East namely; Rehabilitation of Enugu-Port Harcourt dual carriage way section two, Onitsha to Enugu expressway, Enugu to Port Harcourt dual carriageway section one, and three. For the South South, five projects will benefit from the fund namely; dualisation of Yenegwe to Kolo to Otuoke to Bayelsa palm road.

Other projects in the region are the rehabilitation of Enugu to Port Harcourt road section four and the dualisation of Lokoja to Benin road section two, three and four and five. Finally, three projects would be executed in the South West region namely; reconstruction and asphalt overlay of Benin to Ofosu to Ore to Ajebandele to Shagamu dual carriageway phase three and four.

Also the dualisation of Ibadan to Ilorin road section two would also be completed using the raised funds. The contractors to benefit from the funds are Arab Contractors Nigeria Limited, CCECC Nigeria Limited, CGC Nigeria Limited, Dantata and Sawoe Construction and Gitto Construction Generalli Nigeria Limited. Others are Salini Nigeria Limited, Mothercat Limited, RCC Nigeria Limited, Setraco Nigeria Limited and Eksiogulari Nigeria Limited.