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Business News of Monday, 31 August 2020

Source: legit.ng

House of Reps says N155bn for Abuja-Kano road rehabilitation project is too much

Hon. Kabir Abubakar Hon. Kabir Abubakar

House of Reps has raised questions over the Abuja-Kano road rehabilitation project.

Kabir Abubakar, House committee chairman on works, said the project is overpriced.

The lawmaker said the N155 billion budgeted for the project is too much compared to the quotations of other companies.

The House of Representatives has lamented the allocation of N155 billion for the rehabilitation of the Abuja-Kano road, saying the project contract is overpriced.

Chairman of the House committee on work, Malam Abubakar Kabir Abubakar, made this known while inspecting the road on Sunday, August 30.

According to him, the N 155 billion quotations for the project is too high compared to what other companies offered.

Abubakar said other companies quoted N90 billion for the contract, adding that Julius Berger, which later got the project, earlier billed 159 billion before it was scaled down to N155 billion.

Abubakar said despite the payment of initial N70 billion by the federal government out of the overall N155 billion, the road is still not in good shape as much work has not been done by the construction firm.

“What we are saying is that the cost for this project is too high. We know of some companies that quoted N90 billion for this project, but we don’t want to mention names. We have several petitions regarding this project in the house,” he said.

“The cost was initially N159 billion before it was scaled down to N155 billion. There is nine months left on the contract and we must emphasise that it must be delivered on schedule. There will be no extension. Otherwise, we will apply the force of the constitution."

Abubakar said the way the project is being handled may lead to another setback which he claimed affected the construction of Lagos-Ibadan road.

Meanwhile, Legit.ng reported that the planned 774,000 jobs for Nigerians project is still generating disquiet as House of Representatives members who belong to the Peoples Democratic Party (PDP) rejected the scheme, saying it is politically motivated.

In a statement on Monday, August 24, the PDP lawmakers caucus led by Kingsley Chinda said the planned projects under the supervision of the Ministry of Labour and Employment is an avenue to siphon the public funds.

Chinda said the project is being carried out under the guise of job creation to carpet over N52 billion of Nigeria's scarce resources within the period of three months.