Tag: Umahi

  • Tinubu working hard to alleviate economic hardships – Umahi

    Tinubu working hard to alleviate economic hardships – Umahi

    The Minister of Works, David Umahi has assured Nigerians that President Bola Tinubu is pursuing initiatives to ease the economic hardships faced by Nigerians.

    Acknowledging the poor economy inherited by the current administration, Umahi stated that President Tinubu is doing everything possible to change the situation for the better.

    He also called Nigerians to rally behind the President, saying the Tinubu-led All Progressive Congress (APC) administration deserves all the support and prayers of all Nigerians.

     Umahi expressed his belief that it is God’s will for Tinubu to reset Nigeria for the betterment of its citizens, describing his leadership as diligent and divinely ordained to reset the nation for the better.

    Umahi gave the assurance on Thursday in Bauchi during a courtesy visit to the state governor, Bala Mohammed.

    Nation reports that the minister was in Bauchi to extend his sympathies to the governor and the people over the recent flood disaster that claimed three lives, destroyed homes, and washed away roads across the state.

    He said: “The president has made bold and courageous decisions, though they may not be fully understood by those who are not deeply informed.

    “When someone is ill, the first step is to administer first aid, then conduct tests to diagnose the problem. The good news is that the president, being a technocrat, fully understands the country’s situation and is working diligently to alleviate the people’s suffering.”

    Read Also: FG will not compromise quality, cost-effective road projects, says Umahi

    Umahi pointed to several initiatives by the administration, such as cash transfers, student loans, and addressing the country’s energy needs through CNG, as evidence of Tinubu’s commitment to improving the lives of Nigerians.

    He pointed out the president’s efforts in security and road infrastructure, particularly in response to concerns from the North-East that they had been neglected in the past.

    “The President is determined to change the narrative,” Umahi said.

    In his remarks, Governor Bala Mohammed appealed to the federal government to extend its Legacy Roads projects to the Northeast region, connecting the sub-region to the rest of the country and unlocking its vast potential for development.

    He commended President Bola Tinubu’s administration for its numerous legacy projects across the nation while calling for the inclusion of the Northeast region in the scheme.

  • FG warns contractors over delays in Enugu-Onitsha road project

    FG warns contractors over delays in Enugu-Onitsha road project

    The federal government has issued a stern warning to contractors handling the dualization of the 107km Enugu-Onitsha road, citing dissatisfaction with the slow pace of work.

    The Minister of Works, David Umahi said the project must align with the Renewed Hope administration’s policies on infrastructure development, concerning project speed, quality, and the comfort of road users.

    Umahi gave the directive in Abuja on Thursday, August 8, during a meeting with the management of MTN Nigeria, the sponsor of road construction under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, representatives of the Enugu State Government, and the two contractors handling the project, Reynolds Construction Company (RCC) Ltd and Nigercat Ltd.

    The minister, who maintained that the delays in the project were not due to funding issues but rather a lack of execution on the part of the contractors, expressed disappointment over the current condition of the road and criticized the contractors for their lack of commitment and insensitivity to the plight of road users.

    He said: “The MTN has engaged the subcontractors, two subcontractors, RCC Ltd and Nigercat Ltd. The first time I supervised that project, I discovered that the Nigercat section where we have a binder course had failed.

    “I directed that the binder course must be sacrificed and reinstated, and I knew it was inherited. I want to believe that it has been done.

    “Let me express my disappointment over the slow pace of work on that project. It’s one of the worst roads in this country.

    “Everywhere we have diversion; diverting from the one that RCC and the Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.

    “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads”

    Umahi recounted a recent inspection of the road alongside the Governor of Enugu State, where they witnessed firsthand the severe traffic congestion and discomfort faced by road users, particularly at the Abakpa section, where RCC Ltd had blocked off part of the road to lay binder, forcing all traffic onto a poorly maintained single carriageway.

    “I have continued to say that Nigerians should not be suffering while contractors are building roads for our people. It does not happen in any other country, the way it happens in Nigeria.

    “The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on.

    “Most of the time, contractors bring very serious nuisances, hardships, and pains to the public, and they don’t care.”

    Read Also: Protest: Keep faith with Tinubu – Mba, Umahi urge southeast

    While appreciating the Enugu State Government for its interventions, which could have been avoided had the contractors adhered to the project terms, the Minister urged MTN to reconsider its contractor choices if the current ones continue to underperform.

    He commended the Enugu State Government for stepping in to fund the construction of a 20km stretch from Abakpa Junction to Akama (9th Mile) on rigid pavement, as well as a flyover bridge at Abakpa Junction, with plans for reimbursement through the MTN Tax Credit Scheme.

    He said: “Why Enugu State government is intervening because of the slow pace of work by the contractors and because of funding issues.

    “The essence of tax credit is for funds to be made available, so, I don’t see RCC going to keep to their promise to finish this project in 6 months.

    “My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best”.

    He also reiterated the Federal Government’s stance against phased handovers of projects and the discontinuation of Variation of Price (VOP) in contract administration.

    He said once a contract is reviewed under the prevailing economic indices, VOP would not be allowed until the job is done

    In addition, he said it is the responsibility of the contractor to maintain the road project until it is completed and handed over no matter how long it takes to complete it.

    “Contractors delaying jobs are on their own. You must maintain all roads handled by you until they are fully completed and handed over to the Federal Government,” he warned.

    While emphasizing that the current administration is focused on ensuring that projects are completed efficiently and to a high standard, without unnecessary delays or added costs, the Minister warned, saying, “We are not accepting phased handovers.

    “You must finish your job, and if it takes 10 years, it’s your responsibility to maintain the sections you’ve completed until the entire project is done.”

    He, however, expressed hope that MTN would proceed with the construction of the second phase of the 107km road dualization.

  • FG will not compromise quality, cost-effective road projects, says Umahi

    FG will not compromise quality, cost-effective road projects, says Umahi

    The federal government has reiterated its determination to ensure the timely and cost-effective completion of key infrastructure projects, emphasising the importance of alleviating the challenges faced by Nigerian road users.

    The minister of works, David Umahi, disclosed that the ministry is set to seek urgent reviews and reevaluations of some ongoing projects that involve presenting a certificate of no objection to the Bureau of Public Procurement (BPP) for the affected projects.

    Umahi disclosed this in Abuja on Wednesday following a meeting with the management of Julius Berger Nigeria where he highlighted discrepancies between the Ministry’s cost assessments and those presented by Julius Berger Plc and certain construction companies for some ongoing projects.

    While providing updates on some of these projects, Umahi commended the quality of work done by Julius Berger but expressed dissatisfaction with the company’s valuation of certain road projects it is handling for the government.

    He said he would seek BPP intervention by presenting the Ministry’s evaluation of the contentious projects to the agency against those of Julius Berger and other similar projects with the same issue.

    He hinted that such projects might end up being subjected to competitive bidding, allowing the government to engage the most cost-effective bid for the affected projects.

    Revealing the outcome of the meeting with Julius Berger, he said, “You are aware that we had dismembered this job and gave Berger 82 km by 2, which is 164 km, to complete on asphalt. And we gave Dangote about 38 km by 2 to complete on concrete. And the Tax Credit and the BUA about 17 km to complete the Tax Credit on concrete.

    “And we have also gone back to the site last 10 days to flag off the re-engagement of these three contractors. And work is ongoing. However, we are not very happy with the pace of work by Berger, but good quality work.

    Read Also: Protest: Keep faith with Tinubu – Mba, Umahi urge southeast

    “So we have discussed one is for Berger to stick to one carriageway within their scope and conclude. But while doing that, they should be able, within the next three days, to fill all the potholes with stone bases.

    “By Friday, they have not done that. We’ve given a directive to the Director in charge of that project to get some contractor to fill it, and then do a memo to the Permanent Secretary so that we can pay from Bill 1.

    “The lives of the people are very important, and we abhor the kidnapping going on because of these potholes. And we have also asked Berger to review what the independent consultant did, which we had already agreed.

    “A total of ₦710 billion, of which the last administration paid ₦391 billion and we are to pay about ₦320 billion or thereabout for the remainder.

    “They will come back to us today because we don’t have time to waste. We have to be very responsive to the society. We have to gauge the mood of the society. We have to do everything possible to take responsibility and discharge our duties.

    “And so they have to come back and we must conclude that. We agreed that this project, within their own corridor, will last 14 months. It will also be deployed in four sections, and we’ll be paying them ₦20 billion every month to get the job concluded”.

    The Minister also cited Section 2 of the Lagos-Ibadan expressway as another subject of contention that must be quickly resolved which might lead to other construction companies bidding for the project.

    He said: “On the Lagos-Ibadan, Section 2, they have concluded Section 1 a long time. We’ve been renegotiating with them on Lagos-Ibadan since September last year.

    “We’ve come to a crossroads where our total cost, and we’ve changed the elements of the pavement from asphalt to concrete, and the total cost we came up with based on prevailing cost is ₦153 billion.

    “But they’re offering ₦258 billion but because we’ve been on this since September, we have no choice but to determine this contract but they asked BPP for no objection for selective tendering, whereby we will be sending our own advice of ₦153 billion to BPP, and we send their own of ₦258 billion to BPP and then invite other contractors to also bid.

    “And this will conclude within the next one month so that we can get that job concluded”.

    “The two sections of the completed Second Niger Bridge were also discussed considering that the bridge has not been deployed as the construction of the two bypasses is being negotiated.

    “So the last administration awarded Section A to them, which is 17.27km by two on asphalt. We changed the elements to concrete and the cost that we came up with was ₦133 billion but they gave us twice the cost, which is ₦279 billion.

    “We have disagreed with this cost. And the time of negotiation since September, we’ve also decided to get the project back to BPP and invite more contractors to also bid because this is a public fund.

    “And so the BPP would be the determinant before FEC. So if they quote the ₦279 billion or review it downwards and submit it to BPP or to us and we submit it to BPP, that would be encouraging so that other contractors that have the same capacity will also be able to bid.

    “It is the same issue on RCC Section B, which we have offered ₦163 billion, and their own is ₦224 billion. So we are taking all of them back to BPP.

    “On Bodo Bonny, we have been on this project for the past nine months.

    “We’ve even taken the matter before the Chief of Staff to Mr. President, together with the National Security Adviser and together with the Honourable Attorney General because of the sensitive nature of this project.

    “We want the project to be completed, you know, and it’s being funded by NLNG on tax credits.

    “Finally, we agreed on an additional cost of ₦80 billion, which will bring the project to about ₦280 billion fixed and non-varying with the unit rates agreed. We have not agreed on the timing because we said 15th of December.

    “They’re coming up with 16 months, which is not acceptable to us. We believe by the time they come back this evening, we’ll be able to extend our own expected completion period, but not 16 months.

    “So we should be able to agree this evening and then close the day so that we can send it to BPP and then to FEC to enable tax credit of NLNG to fund the project.

    “We had already agreed that the price would not vary. The unit prices are complete, and we gave Berger 100% of what they asked, and we agreed that this project will not increase in cost beyond ₦280. And so this is what we’ve discussed on”

  • ‘Umahi, a testament to statesmanship’

    ‘Umahi, a testament to statesmanship’

    Media aide to Works Minister, David Umahi, Mr. Uchenna Orji, has been described his boss as a purposeful statesman with an admirable sense of responsibility in every sphere of life.

    Orji, who celebrated the former Ebonyi State governor on his 61st birthday, highlighted Umahi’s journey as a testament to statesmanship.

    The media aid said Umahi made significant impacts in all the previous offices he held before becoming a member of the Federal Executive Council (FEC).

    He listed the offices as: Ebonyi State All Progressives Congress (APC) chapter chairman; deputy governor and governor for two terms.

    Orji who served in Umahi’s administration as Information commissioner, said the tenure brought transformation to the land and emancipated the people.

    He said: “It is with profound joy that I convey my warm felicitations to a transformative leader, an innovative achiever, and a record breaker, David Umahi, the Minister of Works,  on this remarkable moment of the celebration of his 61st birthday anniversary dated 25th July 2024.

    “I thank God Almighty whom it has pleased to sanctify you as a vessel unto honour for exemplary leadership in all spheres of public trust.

    “Honesty, you radiate brilliance, statesmanship, purposefulness, and admirable sense of responsibility in every field of your endeavours.

    “You distinguished yourself as a State Party Chairman and a Deputy Governor, and as a Governor of Ebonyi State for 8 years, you brought transformation to the land of Ebonyi State and emancipation to her people.

    “You broke all developmental jinxes and brought honour and glory to a people once dejected.

    “You triumphed gloriously in your bid to empower the new generation of leaders. You triumphed gloriously in your bid to represent your people at the 10th Senate and made a historic mark in your positions as the Deputy Majority Leader of the 10th Senate and Chairman of the Integrity Group that anchored the emergence of the Leadership of the 10th Senate.

    “It is remarkable that within the shortest period in the Senate’s history, you were nominated at the singular pleasure of Mr. President to serve the nation as a minister.

    Read Also: Tinubu not opponent of protest but violence, says minister

    “Your appointment was considered a square peg in a square hole considering your performance track records and your historic emergence as the first civil engineer to be appointed minister in the history of the country’s democratic governance.

    “The policy innovations so far introduced and the achievements recorded by your office within so short a time are eloquent testimonies of your sense of purpose.

    “I am particularly thrilled by the zeal and passion with which you drive the road infrastructure development goals of the Renewed Hope Agenda (RHA) of President Bola Ahmed Tinubu, whose vision is to revolutionize the economy of the country through comprehensive infrastructural rebirth.”

    He listed the 700-km Lagos-Calabar Coastal Highway, the 1000-km Sokoto-Badagry Superhighway and the 477-km Cross River – South East – North Central – Abuja Superhighway as the Renewed Hope Legacy projects.

  • Why we redesign, re-scope inherited road projects, by Umahi

    Why we redesign, re-scope inherited road projects, by Umahi

    Minister of Works David Umahi has identified the early failure of some inherited road projects as reasons why they are redesigned and re-scoped to enhance their durability.

    According to Umahi, the President Bola Tinubu administration is implementing stronger construction measures to address pavement failures and years of neglect on the East-West Road in the South-South. He also emphasized the administration’s commitment to the Renewed Hope Agenda, which aims to provide all regions with the environment to achieve their full economic potential.

    The minister, who said the Federal Government is using reinforced concrete technology in the redesigned projects, noted that the approach is expected to end the persistent pavement failures and long-standing road neglect in the wetland areas of the Niger Delta.

    He spoke on Monday when he visited project sites on East-West Road section II: Kaiama- Ahoada in Rivers/ Bayelsa States; the construction of multiple box culverts at flood-damaged locations along the dualization of East-West Road handled by Messrs Rock Results Nigeria Ltd, and the dualization of the East-West Road, Section II (subsection II) handled by SETRACO Nigeria Ltd.

    Read Also: Umahi seeks synergy with states on federal road project delivery

    In a statement yesterday by his media aide, Uchenna Orji, the minister explained that some sections of the East-West Road, starting from Lokoja to Benin, were also re-scoped and redesigned in reinforced concrete.

    According to him, the road’s height was increased above the flood level, and the redesign factored the peculiar environment, geomorphology and soil characteristics which were responsible for the failures of flexible pavement used over the years by successive administrations.

    On ongoing work on the Kaiama-Ahoada section, the minister said: “When we came on board, the job was already awarded by the past administration. And so the only new thing in all these locations under President Tinubu is the relief culverts that these two local contractors are putting, and are proving themselves to be of a very high reputation in terms of their work.

  • Umahi seeks synergy with states on federal road project delivery

    Umahi seeks synergy with states on federal road project delivery

    The minister of works, David Umahi, has emphasised the need for synchronized strategic action plans across all government levels to address the accumulated road infrastructure challenges in Nigeria. 

    The minister, while on a project tour of some ongoing federal road projects along the Aba axis of the Enugu-Port Harcourt Expressway, said such synergy is crucial for enhancing commercial activities and catalyzing local economic growth.

    Received by Abia state governor, Alex Otti, Umahi said that the collaboration would also signify the self-actualization of the enterprising people of Abia State.

    He commended the governor for the synergy between Abia State Government and the Federal Government, which he noted has resulted in the major road infrastructure facelift in the State.

    Praising Governor Otti’s decision to prioritize road infrastructure development, Umahi noted that his focus is pivotal for enhancing commercial activities and catalyzing local economic growth in the State.

    In a statement by his Media Adviser, Uchenna Orji, on Sunday, the minister also commended the Governor for his sense of purpose and power of supervision, which has made a difference in the infrastructure development history of his State. 

    Read Also: Adeleke advocates devolution of power to address Nigeria’s challenges

    He said he was gratified that the prioritization of the development of critical infrastructure by the Governor had attracted the admiration and praise of the people of the State.

    He said, “He has, through the help of the President, got a lot of improvement in the road of infrastructure of the State, especially Port Harcourt to Enugu Road. 

    “He is always on that road, supervising and inviting me. And so we have gone around some of his projects. And I can assure you, as an engineer, that this man is God sent. With the volume of work, he is doing, with the quality of work he is doing, I can say it’s only God that brought him at a time like this. 

    “I say to him, if you had this in the past 12 years, Abia would not have been the same. But you know, the Bible says at the time of God, he makes all things beautiful.”

    The Federal road projects visited by the Honourable Minister of Works include the Rehabilitation of Enugu – Port-Harcourt Expressway Section III: Enugu – Lokpanta, Enugu State and the Rehabilitation & Reconstruction of Enugu – Port Harcourt Dual Carriageway, Section II; Umuahia Tower – Aba Township Rail/Road Crossing in Abia State. 

    The statement reads in part: “At the CCECC section of the project, the Honourable Minister directed that the section between the railway crossing and the Alaoji be modified. 

    “4 carriageways (like Arab section), instead of 2; and a roundabout to be constructed at the intersection between Port-Harcourt Rd in Aba and  Enugu – PH Expressway.

    “Speaking during the event, the Governor of Abia State thanked President Bola  Tinubu for the progress of work at the ongoing rehabilitation of the Enugu – Port Harcourt Expressway, which has reached tremendous milestone delivery since the coming on board of the Renewed Hope administration of Mr. President.  

    “He described the efforts of the  Minister of Works in supervising the work progress as a motivation driven by passion and determination to revolutionize road infrastructure development for the actualization of the Mr. President’s vision of realizing national economic growth and sustainable prosperity.”

    “I am here with the Honourable Minister of Works, Sen. David Umahi, we came for inspection. We have gone to the Express road he is building for usus.”

  • Umahi: Tinubu’s legacy projects not foreclosing inherited ones

    Umahi: Tinubu’s legacy projects not foreclosing inherited ones

    Minister for Works David Umahi has said President Bola Tinubu’s legacy projects will not foreclose the completion of inherited projects.

    The minister spoke yesterday in Abakaliki, Ebonyi State, during the unveiling of the 477-kilometre Cross River/Southeast/Northeast super highway.

    The road has a 101km spot that passes from Cross River State through Ebonyi State.

    Umahi, who said President Tinubu’s administration inherited over 2,600 projects, explained that the legacy projects are not taking the place of inherited projects. He however noted that the administration is faced with serious financial challenges which has affected its ability to carry out all the projects at the same time.

    The minister also said due to paucity of funds, the government will prioritise inherited projects that have reached advanced stage and complete them first. He noted that the projects, when completed, will have serious positive economic benefits to the people and communities.

    He added: “The road will also improve tourism in the areas and the country in general. It will lead to development of a lot of tourism sites and industries.”

    Umahi said the section one and two of the project have been procured and work is ongoing with a target to open them by May 2025.

    Read Also: Tinubu’s legacy projects not foreclosing inherited projects, says Umahi

    He further explained that procurement for section 3 and 4 has started following President Tinubu’s directive.

    On the Lagos to Sokoto section, Umahi said the road will have six lanes and will be a great economic corridor as it will have numerous dams because the president is very much interested in agriculture.

    Governor Francis Nwifuru hailed President Tinubu and Umahi for deeming it worthy to include the state in the project.

    He pledged the cooperation and support of the state and people to make the project a success.

  • Tinubu’s legacy projects not foreclosing inherited projects, says Umahi

    Tinubu’s legacy projects not foreclosing inherited projects, says Umahi

    President Bola Tinubu’s legacy projects will not foreclose the completion of inherited projects, minister for Works, David Umahi has said.

    The minister disclosed this on Wednesday, July 17, in Abakaliki, capital of Ebonyi state during the unveiling of the 477-kilometre Cross River, southeast, northeast super highway to stakeholders of the state.

    The road has a 101km spot that passes from Cross River State through Ebonyi State.

    Umahi, who revealed that President Tinubu’s administration inherited over 2600 projects, explained that the legacy projects are not taking the place of inherited projects.

    He, however, noted that the administration is faced with serious financial challenges which has affected its ability to carry out all the projects at the same time.

    He noted that due to the paucity of funds, the federal government will prioritize inherited projects that have reached the advanced stage and complete them first.

    Read Also: Outdated laws hinder smooth operation of public institutions, says Speaker Abbas

    The minister noted that the projects when completed will have serious positive economic benefits to the people and communities.

    He said: “The road will also improve tourism in the areas and the country in general it will lead to the development of a lot of tourism sites and industries.”

    He noted that it will have a lot of agricultural benefits to farmers as they will have access to roads to transport their farm produce.

    Umahi, a former governor of Ebonyi State said that sections one and two of the project have been procured and work is seriously ongoing with a target to commission the two sections by May 2025.

    He further explained that procurement for sections 3 and 4 has started following President Tinubu’s directive to that effect.

    On the Lagos to Sokoto section, Umahi said the road will have six lanes and will be a great economic corridor as it will have numerous dams because the president is very much interested in agriculture.

    Governor of the state, Francis Nwifuru commended President Tinubu and the minister for deeming it worthy to include the state in the project.

    He pledged the support and cooperation of the state government and the people of the state towards the project.

  • Umahi urges youths to shun calls for protests against Tinubu’s govt

    Umahi urges youths to shun calls for protests against Tinubu’s govt

    The minister of works, David Umahi, has urged the people of the southeast to shun calls for protests against the government of the day.

    He made the call in Abakaliki, the capital of Ebonyi State on Wednesday, July 17.

    The minister spoke during the unveiling of the legacy road projects of President Bola Tinubu to stakeholders and people of the state.

    According to him, the president is doing everything possible to ameliorate the hardship in the country.

    He noted that the president took hard some decisions for the betterment of the country.

    He said: “The president is doing everything possible to ameliorate and end the hardship. Let us support him, he is doing everything to unite Nigeria, put food on our tables, and develop the health, education and other sectors. Pray for him and support him.

    Read Also: Tinubu pays tribute to Olatunji Dare at 80

    “The governors have spoken to our people. There will be no form of demonstration against the President in Ebonyi and southeast.

    “Southeast today under President Tinubu has benefitted from numerous road construction projects ongoing to develop the southeast which has suffered many years of neglect in previous administrations. So we need to support him”.

    The Minister also noted that there has been a marked improvement in the security of the southeast since President Tinubu’s administration came on board.

    “Security has been highly improved in the southeast under President Tinubu. The little security lapses being noticed now are self-inflicted and I commend the governors of the region for what they are doing in this regard”, he said.

    He called on the Nigerians to eschew statements that may stoke crisis in the country nothing that the country needs at this point is a peaceful atmosphere to develop.

    “We should stop the fanning embers of division. We are paying for the past years of neglect and mismanagement. We failed to plan properly in the past and we have to accept our past mistakes and find ways to start correcting them and this is what the President is doing”, he said.

  • FG didn’t cancel inherited projects – Umahi

    FG didn’t cancel inherited projects – Umahi

    Minister for Works David Umahi has debunked media reports the Federal Executive Council (FEC) has stepped down inherited ongoing projects.

    Umahi, according to a statement by his Special Adviser on Media, Uchenna Orji on Friday stated this during  an interactive  meeting with contractors.

    Describing the reports as misleading, the Minister maintained that neither President Bola Tinubu nor FEC directed that inherited projects should be stepped down.

    He explained that the Federal Government is willing to engage on contract review and cost augmentation on the inherited ongoing projects in view of the geometric rise in cost of contract elements caused by the inherited challenging economy. 

    He however noted that this would be done subject to fund availability. 

    The Minister said that the decision for windows to review and augment the cost of inherited ongoing projects was borne out of Mr. President’s magnanimity and commitment to completing all inherited and funded ongoing federal government road projects nationwide. 

    He said: “It was Mr. President, out of his very exceptional magnanimity, that directed that all inherited projects should be made alive through appropriation, promising that he was going to be looking for ways to fund the projects, even outside the budgetary provisions, through the National Assembly.” 

    “What we are doing now is to review the projects in line with availability of funds and make a proposal to FEC. If such a project has attained about 80% completion, then we make a proposal to FEC that in subsequent appropriation, money should be made available, and such projects should be made a priority, so that it could be completed”

    “The Federal Executive Council noted that the review we are doing, and in some cases a few new contracts that we are seeking approval to award, that there is a very large disparity between either the increase in contract costs or the project cost, between what we are looking  for and the available funding.”

    He explained further “The subject matter in fact was not about the unit cost, because we are very satisfied as a ministry with the costs that we have offered to you, which are actually the unit cost in line with the realities of the market prices.  Some of these projects were awarded 18 years ago, some 10 years ago, 5 years ago”, he stated.

    The Minister further  reiterated  the determination  of the federal government in bringing funding  and budgeting  innovations that would fast-track road infrastructure development.

    He noted that FEC had directed the Ministry of Works to work with Ministries of Finance and Budget and National Planning to put forward proper budgetary estimates for the 2025 financial year for those projects that were not appropriately budgeted  for but have attained 80% completion so that such projects might be completed and delivered. 

    But projects with huge procurement  costs but have little appropriation and with little completion milestone would be reviewed in line with section 51 of the Special Conditions of Contracts.

    On Variation on Price (VOP) issues, he stated that all projects awarded in 2024 will not attract any VOP. 

    Read Also: Coastal Road: Tinubu, Umahi get kudos for route reversal

    “We have made it as a policy that such projects can not get any variation. However, within the course of the year and the project execution, if there are issues that do change the basic market prices of construction materials to a certain extent, we will revisit the issue of VOP. And it will not be selective”, he said.

    For projects with dualization, the Minister directed that all contractors with such projects must as a matter of policy concentrate and first complete one carriageway and turn it over for public use and must within the period maintain the other carriageway for public use. 

    The Permanent Secretary, Yakubu Adam Kofarmata commended the initiative and urged the contractors to embrace the message of the meeting for the sake of Nigerians.