Default on N94 million counterpart fund by Niger state has delayed works on the $20 million World Bank assisted Fadama III Additional Finance (AF) projects on-going in the state.
The N96 million outstanding comprises of the N56 million counterpart funding for 2015 and N40 million outstanding payment for 2014.
The Fadama project was being financed from the $200 million provided by the World Bank, to support the development of core value chain of cassava, rice, sorghum, tomato and horticulture in the country.
The four-year project which commenced in 2014 and to wind up in 2017 is being implemented in six states of Niger, Kogi, Kano, Anambra, Enugu and Lagos.
Adetunji Oredipe, Task Team Leader for the implementation of the project in the country, at a meeting with Governor Abubakar Bello of Niger in Minna noted that the less than $2million had been expended on the project due to the state government’s default in meeting its obligation towards the project.
“The FADAMA III AF project, a collaboration of the Bank and the Federal Government, is two years old in Nigeria and we are committed to investing 20 million dollars in Niger state.
“As of today, we have not expended up to 2 million dollars in the state,” he said.
While Oredipe appealed to the state government to pay its counterpart funds to enable it access the fund, he noted that failure by the state to raise its counterpart fund when required will affect the budget implementation.
“Niger state is owing counterpart funds to the tune of N56 million for 2015 because there was no contribution for the year; it also owes a balance of N40 million for 2014,’’ he said.
Oredipe noted that prompt payment of the counterpart funds would ensure the success of the project.
“Your Excellency, even if it is going to be payment on instalment basis help us to pay the counter fund for the project,’’ he said.
Oredipe commended the state Fadama III AF project for its transparency and accountability in implementing the project in the state.
Responding, Bello directed the Commissioner for Agriculture and Rural Development, Abdulahi Aliyu, to ensure that the counterpart funds were paid instalmentally toward accessing the projects.
According to the governor, counterpart funding has been a challenge not only for World Bank Fadama projects, but for other international institutions support programmes.
“We are lagging behind in terms of counterpart funding; I have noted your request for N40 million balance in 2014 and N56 million as counterpart fund for 2015.
“Once my team is able to come up with a clear plan on what the money will be utilised for, and once it meets my requirement, we shall do whatever is necessary to access the funds for the benefit of our people,” he said.
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