Kehinde Fajobi
The Federal Government now requires more than N19 trillion to complete ongoing road projects nationwide, following the impact of naira devaluation and the removal of fuel subsidies, according to Minister of Works, Engr. David Umahi.
In a briefing on Monday, Umahi said the current administration is facing a funding shortfall for the 2,604 projects inherited by President Bola Tinubu, with the revised cost now surpassing the earlier projection of ₦16 trillion in August 2024.
“The total cost was ₦13 trillion, that was what the President inherited,” Umahi explained, adding that contractors are currently owed ₦1.6 trillion.
He had earlier stated in a briefing in August that “the funding gap to complete all the inherited projects is about N13 trillion as of May 2023; that will be more than N16 trillion when all projects are reviewed in line with current market realities. This is due to the removal of fuel subsidy and floating of the naira”
However, during yesterday’s briefing, Umahi said these issues have continued to hamper project delivery
Umahi noted that the effects of the naira floating had driven up costs. “When you look at the variations by reason of the floating of the naira, you will find that if you review all these projects, you get over ₦19 trillion,” he stated.
The Minister stressed Tinubu’s commitment to completing the projects, stating that the President aims to secure funding from both internal and external sources.
“The President has given priority attention to the Ministry of Works, knowing fully that roads and bridges have the potential of unleashing unprecedented economic benefits for citizens,” Umahi said.
Umahi also addressed delays with the Abuja-Kano road project, warning that the government may revoke the contract with Messers Julius Berger if the contractor does not mobilise to the site by the end of a seven-day ultimatum that expires tomorrow.
“Negotiation between the ministry and the contractor went on for the better part of 17 months, and there must be an end to it,” he asserted.