The entrapment of Edo State Governor, Mr Godwin Obaseki, in a flood at the RCC junction on Sapele Road, Benin, Edo State, on Sunday, July 23, 2023, has sparked a rash of conversation on the condition of federal government roads in Edo State.
The incident brought to the fore the deplorable state of roads not only in Benin metropolis but also across the state.
Interestingly, both federal and state roads are implicated in the conversation.
The conversation was a sequel to the viral video that showed the convoy of Governor Obaseki of Edo State apparently stuck in middle of the flooded road.
But there were reports that indicated Federal government’s commitment to the rehabilitation of some of its roads that traversed the state.
It is recalled that the Benin-Sapele Road rehabilitation contract was one of the road projects awarded by the Federal Government in the twilight of the President Muhammadu Buhari administration.
The others were the Benin-Okene road contracts, made up of three sections, which was first awarded over 15 years ago to three contractors, with each handling a section.
THE CONCLAVE reports that not so much progress has been made on the road project.
It was learnt that the execution of the project was hampered by inadequate funding provided in the budgets by previous administrations.
However, a source in the Ministry of Finance, Budget and National Planning said that in 2022/2023, the Federal Executive Council (FEC), consequent upon a series of discussions by the immediate past Minister of State for Budget and National Planning, Prince Clem Agba and the immediate past Minister of Works, Mr Babatunde Fasola, approved a memo presented in council wherein alternative ways for completing the road project were discussed and approved.
THE CONCLAVE reports that the alternatives became imperative when it was evident that budgetary provisions alone wouldn’t be sufficient in executing the project, in the face of growing revenue challenges.
One of the alternative ways of funding the road project, as learnt, was through Sukuk fundings, which had previously been allocated for the project before 2019.
More Sukuk funds were also, as gathered, allocated between 2019 and 2022 to increase the pace of the work.
The memo approved by the FEC in April 2023 stated that the project would be executed under the Road Infrastructure Development and Refurbishment Investment Tax Credit by the Nigerian National Petroleum Company Limited (NNPCL).
The development was applauded as stakeholders anticipated that this approach would finally address the delivery of the road project, similar to infrastructure projects executed in Phase 1 of the Nigerian National Petroleum Corporation’s (NNPC) Tax Credit Scheme.
However, the sad video of the governor’s convoy has once more depicted the current state of the Benin-Sapele road, a few months after the announcement by the previous administration.
The flood incident had also provided a linchpin for Governor Obaseki to point the finger of guilt at the federal government instead taking action in the interest of Edo people who ply the road on daily basis.
An official in the Ministry of Works confirmed to THE CONCLAVE that the road projects were circumscribed by relevant agreements that were signed between the Ministry of Finance (through the FIRS), Ministry of Works, and NNPCL for the three portions of Benin-Okene road, with each to receive N25 billion, totaling N75 billion.
According to him, sections 1 and 2 of the project (i.e. Benin to Ekpoma axis and Ekpoma to Auchi axis respectively) received additional funding allocations in the 2023 budget to the tune of N5 billion each.
Asked about the delay behind the execution of the project, the official, who pleaded anonymity, said that the implementation of the project couldn’t commence immediately as contractors (of the Benin-Okene road contract) requested a review of the terms of the contract.
“They argued that the cost of construction and implementation of the project had significantly risen over the years.“
A former ministerial aide also noted that in the twilight of the President Muhammadu Buhari administration, the Ministry of Works was in the process of reviewing and approving the augmentation of these rates, as a result of complaints by the contractors who cited inflationary pressure.
THE CONCLAVE also reports that the Benin-Sapele-Warri Road, which is a new contract awarded to three contractors and made up of three sections may have suffered a delay occasioned by the transition period from the immediate past administration to the current one.
Recall that the Benin-Sapele-Warri Road project, made up of three sections, with independent timelines (one 18 months, one 36 months, and the other four years), was approved a month or two to the end of the Buhari administration.
THE CONCLAVE further quotes a former aide of the immediate past minister of state for budget and national planning to have said that “apart from possible delays due to the transition period, everything should be in order with the Benin-Sapele-Warri Road project.”
The aide said that the immediate past minister of state for budget and national planning, Prince Clem Agba had worked and fought very hard to secure the funding of 6 of these roads (3 sections of Benin-Okene & 3 sections of Benin-Warri road) in the tax credit scheme, pointing out that “this is 6 out of the 44 roads under the tax credit scheme.”
He further stressed that as the Ministry of Finance, Budget and National Planning had fulfilled its part in providing an alternative source of funding for the project, the implementation process now lies within the responsibility of the Ministry of Works which should be executed soon.
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