The Minister of Works, Engr. David Umahi said in a briefing on Monday, 29 October that President Bola Tinubu’s administration would now require over N19 trillion to complete inherited projects
The cost update is attributed to a weakening naira, and the removal of fuel subsidies have upturned previous projections by the Federal Government of the amount that would be required to complete inherited ongoing road projects nationwide.
A situation that represents an increase of N3trillion over the N16trillion projected for the projects as of August 2024.
The minister at a 23 August briefing noted 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, while addressing the media yesterday, the minister explained that these issues had continued to have an impact on the ministry’s activities, with respect to project delivery.
Umahi said: “The President inherited a total of 2,604 projects as at May 29, 2023. The total cost was N13trillion, that was what the President inherited. And a debt to contractors of N1.6 trillion.
“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 N19trillion, the total ongoing projects.
The minister explained that the President decided to keep all the projects alive, with the hope to get funding from internal and external sources, including loans, because of his concern for the well being of Nigerians.
Adding that, 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 also explained that the ministry would not hesitate to revoke the Abuja-Kano road contract awarded to Messers Julius Berger should it fail to mobilize to site at the expiration of the 7-day ultimatum given to it.
The ultimatum expires tomorrow.According to him, negotiation between the ministry and the contractor went on for the better part of 17 months and government decided there must be an end to it.
