Funding gap for completion of inherited road projects to hit N16 trillion… FG
CHIGOZIE AMADI
The federal government yesterday put the funding gap to complete all the inherited projects to over N16 trillion, when all projects are reviewed in line with current market
realities
It informed that as at May 2023, about ₦13trillion was the value of the inherited road projects that were ongoing across the country, and will be more than 16Trillion Naira when reviewed.
The minister of works, Engr David Umahi who dropped the hint at a Ministerial Briefing of the ministry in Abuja Thursday, said “Due to the removal of fuel subsidy and the floating of the Naira, though it is a very sound economic decision of this administration, and considering the fact that some of the projects have lingered for between 5 to 18years, consequently, the projects are being reviewed to match with current market realities.
“This position excludes all the new projects under the Renewed
Hope Agenda and the Four Legacy projects”.
The minister valued the inherited ongoing projects as: “The total value of all the ongoing projects as at May, 2023 was ₦14,424,982,425,616.40, amount certified ₦4,734,849,328,306.77. Amount paid N3,122,628,914,427.12. Amount owed contractors for certified works was ₦1,612,220,413,879.65.”.
He highlighted the milestones recorded by the ministry within the period under review, the challenges being encountered and the solutions proffered as well as the prospects of the road infrastructure revolution agenda of the Renewed Hope administration of President Bola Ahmed Tinubu.
Umahi however expressed worry over the recent flood challenges that cut off some portions of Sections II and III of Kano-Maiduguri Dual Carriageway within Jigawa and Bauchi States and which most
unfortunately caused loss of lives in Jigawa State.
He sympathised with
the government and people of Jigawa State over the loss of lives due to severe flooding occasioned by climate change, while also identified with Bauchi State government on the failed portions of some of the roads.
On Jigawa, the Minister also commiserated with the government and people of Jigawa State over the loss of lives due to severe flooding occasioned by climate change.
“I also sympathise with Bauchi State government over the failed portions of some sections of the Kano – Maiduguri Dual Carriageway”, he said.
“It would be recalled that a portion of Section III (Azare Potiskum) at Boskari town in Katagum Local Government Area of Bauchi State on the said road was cut off two (2) weeks ago and I was directed by the President of the Federal Republic of Nigeria, His Excellency, Bola Ahmed Tinubu, to immediately visit the site and proffer remedial solutions to restore the failed portion of the road.
“On 15th August, 2024, I visited and inspected the Bauchi – Gombe road and Section III (Azare -Potiskum) of the Kano – Maiduguri Dual Carriageway within Bauchi State with the Governor, His Excellency, Sen. Bala Mohammed and other top government officials of both Bauchi State.
“As directed by Mr. President, these failed sections have been inspected. While the Governor of Bauchi State has provided immediate palliatives to these failed sections, the Ministry is designing a two (2)-span bridge, as a permanent solution to the menace”, he said. .
Continuing, the monster noted that: “Unfortunately, a portion of Section II (Shuwarin – Azare) at Sabon Gari town in Katagum Local Government Area of Bauchi State on the Kano – Maiduguri Dual Carriageway also collapsed on 19th August, 2024.
“From what I saw when we inspected the said failed section with the Governor of Bauchi State and the level of flooding that had built up, it is not surprising that this section also failed”, he said.
Meanwhile, the Minister has also assured Nigerians that the ongoing Lagos-Calabar Coastal Highway project will proceed as planned despite a pending court case challenging its implementation.
The Lagos-Calabar Coastal Highway, a 700-kilometer project, will run from Victoria Island, Lagos, to Calabar, Cross River State, passing through several states, including Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom.
The project is expected to be a significant infrastructural development, improving connectivity and boosting economic activities along Nigeria’s coastal region.
Speaking during a press briefing in Abuja on Thursday, Umahi emphasised that the Federal Government is committed to seeing the project through and that all necessary legal and procedural requirements have been met.
“We are paying compensation. We are following the corridor right of way. We are following the corridor that is legally allowed for the federal government,” Umahi stated, as he dismissed claims that the project lacked proper authorisation.
He expressed confusion over the basis of the court case, noting, “And so, we don’t know what they are taking to court.”
The Minister also addressed concerns regarding the project’s procurement process, highlighting that it had been approved by the Federal Executive Council under the Restrictive Procurement Act.
“My permanent secretary is a procurement expert, and I have a very good department of public procurement and good directors. But the project was approved by the Federal Executive Council under restrictive procurement,” he explained.
Umahi went on to defend the cost and scale of the project, noting that comparisons to other international projects were unfounded.
“I’ve had to run even the cost of the project at 4 billion per kilometre. And yet, people still come to say, oh, this number of lanes in Egypt is 1.8 billion. And it is 300 kilometres,” he said, criticising those questioning the project without sufficient knowledge.
The Minister also reassured stakeholders that all environmental and social impact assessments had been completed and that the project was included in the 2023 supplementary appropriation.
“We have EIA certificates on the project. That’s number one. Number two, was the project listed in the appropriation list? The project is in the 2023 supplementary appropriation,” he confirmed.
Umahi warned those attempting to halt the project through legal means, stating, “If they want to unduly benefit from the project by going to court, they are wasting their time.”
He further declared, “I fought many battles as governor of my state. And so, my name is David. And I’m not afraid of bad people.”
He announced that the Ministry will not propose any new projects for the 2025 fiscal year, aiming to minimise or eliminate the occurrence of abandoned projects.
This is as he decries N16tn funding gap on an ongoing over 4,000 projects he claimed the current administration inherited.
He made this statement during a media briefing in Abuja on Thursday, marking his first year in office,
The minister 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 N16tn, most of them were inherited by this administration.
“Some of these projects were awarded when the naira was exchanged for N150 to $1USD.”
The minister further explained that inflation has contributed significantly to the rising cost of most of these projects and it would be in the nation’s best interest.
