The pressure on the naira in the foreign exchange market and the removal of the fuel subsidy have impacted earlier projections for completing ongoing road projects nationwide.
Minister of Works, Engr. David Umahi, revealed at a briefing yesterday that President Bola Tinubu’s administration will now need over N19 trillion to finish these projects. This new figure is an increase of N3 trillion from the N16 trillion estimated in August 2024.
Umahi had at a briefing on August 23rd said: “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 further stated that the President chose to sustain all road projects, aiming to secure funding from both internal and external sources, including loans, due to his commitment to Nigerians’ welfare. He emphasized that President Tinubu has prioritized the Ministry of Works, recognizing that roads and bridges can unlock significant economic benefits for citizens.
The minister also warned that the Abuja-Kano road contract with Messers Julius Berger would be revoked if the contractor fails to mobilize to the site by the end of the 7-day ultimatum, which expires tomorrow. He noted that negotiations with the contractor spanned 17 months, prompting the government to set a firm deadline.
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