FG urged to refund N350bn to states on federal roads repairs

BY DANIEL IDONOR
ABUJA — THE National Economic Council, NEC, comprising the 36 states and the Federal Government, yesterday, rose from its first quarterly meeting of the year with a resolution that the central government refunds the over N350 billion that states expended on the repair of federal roads in their respective domain.
At the end of the meeting, the state governors successfully secured a commitment from the Federal Government to accelerate the verification and payment of claims regarding the rehabilitation of federal roads.
Addressing State House correspondents, Governors Theodore Orji (Abia), Olusegun Mimiko, (Ondo), Ibrahim Shema (Katsina) and Murtala Nyako (Adamawa) with some of his colleagues explained that the NEC mandated the Federal Ministry of Works to liaise with the state governments towards ensuring the resolution of the matter.

The meeting resolved that while the process of verification is ongoing, state governments should not relent in maintaining the affected roads if so provided for in the agreements entered into with the federal government.
Governor Orji, said “a special provision is being made by the Federal Government to raise the money for the payment which stands at over N350 billion. To ensure proper maintenance of federal roads, states are encouraged to continue with routine maintenance of such roads provided they comply with new procedures for such intervention”, he said.
There are requests that have been honoured in the past while in the last eight years have not been addressed.
The meeting also agreed on joint funding of Agricultural Transformation Initiative. Governor Mimiko said the Council adopted strategies for deeper cooperation between the federal and state governmentstowards improving agriculture, boosting production, ensuring food sufficiency and providing employment opportunities.
“Following a comprehensive presentation on Agric Productivity Enhancement Practices jointly made by Adamawa, Ondo and Plateau States, each state has been asked to submit proposals on theircomprehensive agric plans to be able to access funding from Commercial Agriculture Credit Scheme (CACS) administered by the Central Bank of Nigeria (CBN).
“The ministries of Agriculture, Water Resources and CBN are collaborating towards funding the necessary  agricultural developments in the states with available funds”, he said.
Governor Shema of Katsina said Council resolved for Federal Government to partner with states toensure completion of the on going dam and other agricultural projects and full utilisation of existing ones to boost agricultural production.
Governor Nyako of Adamawa spoke on the decentralisation of Agric Ministry, noting that the Federal Government was in the process of decentralising the ministry of agriculture by creating regional state offices in line with the ongoing reforms for effective monitoring of agricultural processes in the state. “Those offices will be on ground to work directly with farmers in implementing agricultural value chains.  Other areas of reforms being implemented include public, private sector collaboration in fertiliser procurement and distribution, setting up of marketing corporations, the establishment of agricultural investment framework and transmission of a bill on 40 per cent cassava flour content to ensure compliance”.
Accordingly, NEC decided that states should partner with the power distribution companies (Discos) in their respective domains towards providing improved electricity for the people.
Also, the present privatisation framework of 11 distribution companies should be maintained and states government and NERC, will appoint the independent valuers jointly while also 49 per cent of the total equity of these companies will be held between federal and state governments. Federal and states government will not play any role in the management of these companies.
They also that state governments and the National Electricity Regulation Commission, NERC, should appoint independent valuers to ensure that 49 per cent equity of the privatised power plants in their respective states are reserved for the federal government and states.
Shema said Council agreed that states should partner with distribution companies that are recognised by government. It also agreed that NIPP power plants in states should be privatized upon completion of construction.
It was also agreed that shareholders agreement to be signed between the government and core investors in each distribution company will be done between the states and federal government.  The state that desire to establish or build independent electricity distribution networks within the areas of its states not currently served or being served by the distribution companies, is free to do so by obtaining a franchise. This will be subjected to obtaining a license from NERC without any delay.

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