The Minister of Works and Housing, Babajide Fashola, has disclosed that President Muhammadu Buhari’s administration chooses to borrow funds to execute projects instead of imposing heavy taxes on Nigerians.
Speaking at the flag-off of the Akure-Ado highway, Fashola revealed that the President believes that imposing excessive taxes on the already-burdened citizens would be unfair, and opting for borrowing was the better option.
He went further to emphasize that the borrowing option is in line with what is obtainable in other countries. The Minister noted that the President would continue to award contracts and borrow funds until his last day in office, despite the criticisms.
According to Fashola, the NNPC will fund the N90 billion project through the federal government’s tax credit policy, making the funds available while avoiding heavy taxations on citizens. The Minister maintained that infrastructural development can only be achieved through borrowing or taxation.
However, some have raised concerns about the country’s rising debt profile and the current administration’s approach to funding infrastructure projects. Critics have called for more sustainable means of funding developmental projects to prevent Nigeria from sinking into more debt.
Speaking on the Akure-Ado highway project, Fashola cleared the air on the delay and misinformation surrounding the project, saying the contract was awarded to Samchase Nigeria Ltd. and Kopeck Construction Company, after the previous contractor, Dantata and Sawoe Construction Firm, delayed the completion of the project.
Fashola assured the public that the project would be completed in two years, and the new contractors had a good working relationship with them.
“It is a juvenile conversation. They forgot, among other things, that the term of this administration ends at midnight on May 28. This road really represents the paradox about governance, about roads, and about public debts. This is the real story. The work looks easy from the outside, but one decision leads to other consequences. But we have now given you contractors who have worked with you,” he said.
