FG spending much on fuel subsidy; should increase VAT — Fashola

The Minister of Works and Housing, Babatunde Fashola, says the
federal government still owes contractors working on federal road
projects up to N306 billion, defending why the government should
raise VAT and borrow more.

Mr Fashola was speaking against the background of a report by
Daily Trust on Monday that Nigeria has spent about N1.5 billion on
fuel subsidy this year.

The minister said his ministry did not receive up to N1 trillion
naira from 2015 to 2018, underscoring how little the Nigerian
government is spending on infrastructural development compared with
fuel subsidy.

He spoke while hosting the Public Transport Owners of Nigeria
Association at his ministry in Abuja.

“If we had N1 trillion to spend on Nigerian roads we would be in
a much better position. As of October, we were owing contractors
N306 billion and more bills are coming in and all we got was
N73billion,” Punch quoted him as saying.

In his response to the requests of the association for the
tolling of roads and bridges in Nigeria, he said a lot of work was
in progress on federal roads nationwide.

“I heard you talk about tolling roads and bridges. Well, as you
said, the government is actually spending a lot of money on
subsidising fuel. And that is a lot of money from the government to
spend on subsidy,” he said.

The minister expressed regret that despite the very limited
resources available for infrastructure development, some persons
were kicking against an increase in Value Added Tax, as proposed by
the Federal Government.

“And this is the country where some people are of the opinion
that the government shouldn’t raise VAT.

“Some people are also of the opinion that the government should
not even borrow. So I think it is important for those of you here
to also come out and take a position,” he said.

He also disclosed that the Federal Government would introduce
tolls on roads after a clear policy on it had been finalised and
made public.

“When it is time to start; of course, we will articulate a clear
policy for the information of Nigerians. That is the much I will
say about that,” he said.

The National President, PTONA, Isaac Uhunmwagho, said the
association was strongly in support of the reintroduction of toll
gates on highways across the country.

Mr Uhunmwagho outlined the priority roads that should receive
special attention to include roads linking Lagos and Abuja, Lagos
and Port Harcourt, Port Harcourt and Abuja and Abuja and Kano.

Previously, the minister had disclosed some of these roads to be
among the 80 prioritised road projects in the 2020-2021 fiscal
year.