The Plateau Government has earmarked N21.5 billion for the execution of various projects in the works and transport sub-sector in 2016.

The state’s Commissioner for Finance, Mrs Tamwakat Weli, said this in an interview with the New Agency of Nigeria (NAN) on Monday in Jos.

According to her, the sum represents 29.4 per cent of the N73.4 billion earmarked for capital expenditure for the 2016 fiscal year.

She explained that the money would be used for the completion of ongoing road projects and initiation of new ones.

“The sum of N21.499 billion is allocated to Works and Transport sub-sector representing 29.43 per cent of the capital estimate.

“More emphasis will be on the completion of ongoing road projects and the initiation of very critical ones.

“The sum of N705 million have been allocated to the State Road Maintenance Agency for the maintenance of state roads, with N800 million for procurement and installation of street lighting system,” she said.

The commissioner further said that the state had allocated N400 million as intervention fund for the upgrade of the Yakubu Gowon Airport.

“We call on the citizens to be patient as government would do all within its power to deliver on the dividends of democracy,’’ she said.

NAN reports that under the 2016 budget, 33 road projects were identified for construction and rehabilitation.

ViewPointNigeria Analysis

It is commendable that Governor Simon Lalong is taking the bull by the horn by seeking to complete projects initiated by the past administration and initiating new ones. Such continuity of governance/projects definitely serves to accelerate development and sustain the overall vision.

With that said, questions around how this massive sum of N21.499 billion will be raised remains a big conundrum. Especially in the light of the massive drop in federal subvention as well as meagre internally generated revenue at approx. N2 billion per quarter (i.e., N8 billion per year).

Analysis by our experts suggests that the likely manner of raising and financing these projects may be through loans and bonds – which in itself is not a bad if such monies are effectively and efficiently disburse on to the air-marked projects. However, with such high debt profile of the state, care will need to be taken with regards borrowing excessively – which can ultimately lead to a situation where the debt re-servicing and repayments cripples the state.

Additionally, with 5 months civil servant salaries outstanding (i.e., Feb – May), it is imperative that the welfare of civil servants is equally prioritised in the context of other competing priorities. Currently, civil servants bill per month stands at approx. N1.6 billion (a significant sum out of Plateau’s subvention) – as such the dilemma of Governor Lalong in meeting this commitment is fully understood. And his capacity to rise to the challenge of balancing all the competing priorities, whilst initiating and executing new projects will be key to his public perception and ultimately re-electability in 2019.

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PLSG to spend N21.5bn on works, transport