The Minister of Works, David Umahi, on Thursday. rendered an account of his stewardship at the ministry, stressing that there was a funding gap of about N16 trillion for over 4,000 road projects scattered all over the country.
Speaking during a briefing in Abuja to usher in his first one year in office, the minister said that he would not propose any new projects for the 2025 fiscal year, explaining that the plan was to complete all existing contracts nationwide.
He said: “We will not propose new projects for the 2025 fiscal year unless otherwise dictated by Mr President. I’m going to tell the Ministry of Finance to provide funds for us to complete ongoing projects.
“Right now, we have over 4,000 ongoing projects and a funding gap of N16 trillion, most of them were inherited by this administration. Some of these projects were awarded when the naira was exchanged for N150 to $1USD.”
Besides, Umahi stressed that there are currently over six court cases against the Lagos-Calabar Coastal highway, but assured that the federal government remained resolute on completion of the multi-trillion naira project.
Disclosing that the federal government had been paying compensation to affected owners of structures along the Right of Way (RoW), the minister alleged that a lot of those making claims wanted to rip off the Nigerian government.
“That is the beauty of democracy, and under the guise of democracy we have some fraudulent individuals who want to rip where they did not sow. We have not just one court case, we have over six, but we are equal to the task.
“We are paying compensation, we are following the gazetted right of way; we are following the corridor that is legally allowed for federal government. So, we don’t know what they are taking to court. We have the certificate on the project and the project is listed in 2023 supplementary budget,” he added.
According to him, the present administration inherited a total of 18,932 kilometres of road projects, stressing that the 2025 budget will focus on four projects per zone with a plan to complete and commission them next year.
Umahi added: “The funding gap to complete all the inherited projects is about N13 trillion as at May, 2023 and will be more than N16 trillion when all projects are reviewed in line with current market realities.”
The minister also decried the poor funding of Federal Roads Maintenance Agency (FERMA), which has been largely responsible for the poor maintenance of federal roads, noting that only N52 billion was approved for capital projects in the 2024 fiscal year.
He said: “Poor funding of highway projects, which include under-funding of FERMA for effective road maintenance. The agency was allocated N52 billion in 2024 for capital projects, which is grossly inadequate to maintain the existing 36,000km of the federal road network.”
According to the minister, where funds are available, contractors could be paid 30 per cent mobilisation and more funds approved for them under strict conditions to mitigate incessant project fluctuations as is the practice in some states of the federation.
According to him, the government was focused on maintenance and rehabilitation to ensure that the road projects nationwide are sustainable, reducing the need for costly repairs and ensuring that the benefits are long-lasting.
On the problematic Kano-Maiduguri dual carriageway, Umahi stated that President Bola Tinubu had directed that the failed sections should be completed while immediate palliatives should be effected to ensure that the People do not suffer unnecessarily.
“18,932.50km of ongoing projects with a total of 2,064 number of contracts. The total value of all the ongoing projects as at May, 2023 was N14,424,982,425,616.40
“Amount certified, 4,734,849,328,306.77. Amount paid is N3,122,628,914,427.12. Amount owed contractors for certified works was N1,612,220,413,879.65.
“The funding gap to complete all the inherited projects is about N13 trillion as at May, 2023 and will be more than N16 trillion Naira when all projects are reviewed in line with current market realities,” Umahi stated.
Due to the removal of fuel subsidy and the floating of the Naira, though a sound economic decision of the administration, and considering the fact that some of the projects havd lingered for between 5 to 18years, consequently, he said the projects were being reviewed to match with current market realities.
On the Lagos-Calabar Coastal highway, the minister said that it represents a pivotal step toward improving transportation infrastructure and fostering economic development along Nigeria’s southern coast.
Also on the Sokoto-Badagry project, he said that it demonstrates the government’s commitment to enhancing transportation infrastructure nationwide.
“It complements the Lagos-Calabar coastal highway and lays the groundwork for further road development. The 1,068- kilometre Sokoto-Badagry Coastal Highway is a significant infrastructure project in Nigeria.
“It connects the city of Sokoto in the northwest to Badagry in the southwest, traversing multiple states such as Kebbi, Niger, Kwara, Oyo, and Ogun. The project consists of two carriageway of three lanes each.
“It is constructed on 275mm thick concrete reinforced pavement and train track corridor running side by side the super highway. This ambitious infrastructure initiative holds immense significance for Nigeria’s economic growth and regional connectivity,” the minister added.
Emmanuel Addeh
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