N431bn ready for road projects – FG reveals

In a significant move aimed at transforming the nation’s deteriorating road infrastructure, the Federal Ministry of Works announced a N431 billion fund earmarked for contractors working on road dualisation projects across Nigeria.

Minister of Works, David Umahi, outlined the financial plan during a meeting with contractors and zonal Directors at the Ministry’s Abuja office last Thursday.

Umahi revealed that the Nigerian National Petroleum Corporation (NNPC) would fund 50% of the total contract sum for projects slated to run until 2025. “We have N431 billion ready for disbursement, but what’s holding us back is the absence of necessary certificates from contractors,” said Umahi. He urged contractors working under Phase 1 to promptly submit their claims for review and payment.

The Minister also introduced a Performance Bond, ensuring that all new road projects will come with a 10-year guarantee. “If you’ve built roads that can’t last a decade, then you either need to cease work or rebuild them to meet our new standard,” warned Umahi.

Addressing potential bottlenecks, the Minister instructed contractors whose work has not yet reached the halfway mark to concentrate on completing one lane. Umahi emphasized that the accountability for each project extends beyond his tenure, and he would be personally responsible for every certificate he signs off on.

Umahi also touched upon the technological aspects of road construction. He advocated for the adoption of concrete technology used in countries like India and Singapore to prevent premature road failure caused by overloading. “Stories of road failures due to overloading will not be entertained. It’s time to align with global best practices,” he stated.

The Minister called on contractors and stakeholders to adhere to President Bola Tinubu’s “Renewed Hope Agenda.” He reported that the administration is overseeing the construction of 18,000 kilometers of roads with an inherited contract sum of approximately N14.1 trillion. Out of this, N4 trillion is already committed to ongoing projects. “We are scrutinizing the need for any additional works to ensure that we get a fair deal,” Umahi added.

Highlighting issues around inflated contract sums, Umahi disclosed that some contractors had increased their charges by 100%, leading to delays in payment. “We’re revisiting the original plans to gauge the necessity of additional works and to bring the costs into alignment with what is acceptable to the Nigerian Society of Engineers,” he concluded.

This robust financial plan, coupled with stringent project guidelines, could signify a turning point for Nigeria’s road infrastructure, impacting millions of citizens who rely on these routes for their daily commute and economic activities.