InfrastructureLocal GovernmentNewsENHA Passes Bill Establishing Roads Fund, Allocates 29.7% To LGA Roads Maintenance

ENUGU — The Enugu State House of Assembly on Thursday considered and passed a bill for a law to repeal the Enugu State Road Maintenance Agency Law No. 23 of 2010 and enact the Enugu State Road Maintenance and Development Agency Law to Provide for the establishment of the Enugu State Road Maintenance and Development Agency and for connected purposes (HB. 2), 2022.

The passed bill cited as the Enugu State Roads Fund Law will come into effect on the date the Governor of the state, Ifeanyi Ugwuanyi assents to it.

Section 5 subsection 1 of the passed bill provides for the establishment of a fund to be known as the Enugu State Roads Funds which shall be a repository for revenues accruing from road user-related charges and other sources for financing the development, rehabilitation, and maintenance of state rural roads and for other connected matters.

The funds will be sourced from annual subvention from the State Government and Local Government for roads as provided in the relevant appropriation law.

Other sources include, “loans, donations, grants by the Federal, State or Local Government, statutory corporations in the state or any agency or institutions of any government, any international organization or private institution or any person whatsoever;

“1% internally generated revenue due to the state Government; 2% of LG allocation by the Federal Government to state and 2% of the gross contract value of any contract for the development, rehabilitation or reconstruction of a road amongst others.”

On allocation of the roads funds generated, 1% to administration, 29.7% to the roads maintenance agencies of LGA, and 69.3% to the State Government Roads Maintenance Agency.

The Speaker Edward Ubosi, speaking after the third reading and passage of the bill commended the Leader of the House, Ikechukwu Meritus Ezeugwu for sponsoring the bill and the committee on Works, Housing and Urban Development, Transport and Judiciary, Public Petition, Ethics, and Privileges under the chairmanship of Chima Obieze, member representing Ezeagu constituency for the job well done and timely presentation of the report on the passed bill.

“The establishment of the roads fund is a right step in the right direction as it will go a long way in putting roads in the state in order,” Ubosi said.

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