The Minister of Works, Senator David Umahi, on Thursday, revealed that the funding gap to complete all the inherited road projects by the present administration may gulp over N16tn.
Umahi, who said the present government inherited a total of 18,932.50Km of ongoing projects with a total of 2,064 number of contracts, said the funding gap was about ₦13tn as at May, 2023.
Speaking in Abuja at a press briefing to mark his one year in office, the minister said that the total value of all the ongoing projects as at May, 2023 was ₦14.42tn
He added that the certified amount was ₦4.73tn, adding that the amount paid was N3.1tn while the sum of ₦1.61tn was owed contractors for certified works.
“The present administration inherited a total of 18,932.50Km of ongoing projects with a total of 2,064 contracts. The total value of all the ongoing projects as at May, 2023 was ₦14.42tn
“Amount certified was ₦4.7tn, while the amount paid was N3.12tn. Also, the amount owed contractors for certified works was ₦1.61tn
“The funding gap to complete all the inherited projects is about ₦13trln as at May, 2023 and will be more than N16tn when all projects are reviewed in line with current market realities.
“Due to the removal of fuel subsidy and the floating of the Naira, though it is a very sound economic decision of this administration, and considering the fact that some of the projects have lingered for between 5 to 18years, consequently, the projects are being reviewed to match with current market realities’’.
On the achievements of his ministry in the last one year, Umahi, who noted that the sum of N300bn was provided for the ministry in the 2023 Supplementary Budget, said about 90 per cent of the works have been executed to completion on the projects.
“The sum of N300bn was provided in the 2023 Supplementary Budget of the Federal Ministry of works for some on-going and new emergency projects”