FG Approves N740bn for Abuja-Kano Highway

The federal government has approved a number of high-profile road projects, including N740 billion for the Berger stretch of the Abuja-Kano highway. Minister of Works, Dave Umahi, disclosed this to reporters at State House, Abuja, on Wednesday after the Federal Executive Council (FEC) meeting, presided by President Bola Tinubu.

Umahi said the Abuja-Kano road, previously slated for a tax credit arrangement, will now be procured without such a provision, with the 162-kilometre Berger section already approved for N740 billion.

He clarified the government’s approach to managing the extensive backlog of infrastructure projects.

Among the key decisions, FEC announced that the Shagamu-Benin road was undergoing a critical rehabilitation, while procurement processes were being finalised for its full reconstruction using reinforced concrete pavement, he stated.

Umahi highlighted several other projects, including the commencement of construction on the Sokoto-Badagry road, with the Sokoto section to be flagged off imminently.

He said work on the Oyo-Ogbomosho road, a project stalled for 18 years, will resume, and the Makurdi-Katsina-Ala road will undergo significant repairs.

The minister said FEC also tackled the inherited debt profile of N1.6 trillion tied to 2,604 projects, with a total contract value of N13 trillion.

To manage the backlog, he said the Ministry of Works had initiated a phased approach to project completion based on available funding.

He said key examples included the phasing of the Biu-Kangiwa-Kamba-Kaya Niger Republic road in Kebbi State, the Yola-Hong-Mubi road in Adamawa State, and the Kachako-Dambazua road in Kano State.

FEC further approved advanced payment mechanisms to combat inflation and rising costs driven by fluctuating exchange rates and petroleum prices, he said.

Umahi said, “We presented a memo to FEC that where there is proof of funds, there is available funds, the Procurement Act allows MDAs to pay a maximum of 30 per cent advance payments. And let me emphasise that this advanced payment, when you read the law, it says may pay.

“And so when people are giving contracts and they don’t mobilise, and they said, I’ve not paid mobilisation, it is not legally binding, because the word says may pay. And so some people turn it to shall pay. So no, it’s may pay.”

He added, “Yes, the law allows us to pay in terms of materials on site. But we are asking beyond that, what is the essence of this? It is to mitigate a lot of fluctuation and inflation, because we have a lot of indices that affect the ministry of works, like the petroleum, it affects it.

“You know the dollar exchange rate also affects, so we are doing everything to manage the resources within the available funds so that we mitigate inflation.”

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed that Tinubu spoke about seeing to conversion of most filling stations across the country to CNG dispensing stations, where you could also get conversion kits.

Ekpo said Nigeria had turned to the use of the alternative fuel, adding that it is cheaper, safer and aimed at reaching all parts of the country.

He stated, “Today at the Federal Executive Council, the president has given a charge, through the Minister of Information, on CNG. We are well aware that the president set up a Presidential Committee on the CNG to drive the CNG project, as a minister who has been supervising what has been going on there, and it is left for us to inform the general public that CNG has come to stay, and we have to follow that route because CNG is safe, cheaper, and protects the environment.

“So today, the president has talked about ensuring that most of the filling stations across the country are converted into CNG stations, where you have the conversion kits, so that people can convert their vehicle to CNG.

“It is important to note that when you are using CNG, you save a lot of money. A litre of fuel that can go for N1000, with CNG, you get it at N200, which saves you N800 and I believe, with the passion of Mr. President, the push that he has given to us, we’ll try as much as possible to drive the CNG programme to reach all the nooks and crannies of this country, so that we will take advantage of the natural resources, gas, that God has endowed us.”

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