… Minister of Works Refutes Claims of Discontinuing Inherited Project
In alignment with President Bola Ahmed Tinubu’s vision for a road infrastructure revolution aimed at economic recovery, Minister of Works, Sen. Engr. Nweze David Umahi, has reassured contractors that the Federal Government is open to reviewing and augmenting the costs of ongoing projects inherited from previous administrations, subject to funding availability. This assurance was given during an interactive meeting with contractors at the Ministry’s headquarters in Mabushi, Abuja, on July 12, 2024.
This announcement was detailed in a statement signed by Barr. Orji Uchenna Orji, Special Adviser (Media) to the Honourable Minister of Works.
Minister Umahi emphasized that the decision to consider cost reviews and augmentations is driven by President Tinubu’s commitment to completing all federally funded ongoing road projects across the country. “Mr. President, out of his exceptional magnanimity, has directed that all inherited projects be sustained through appropriation. He is exploring various funding avenues, even beyond budgetary provisions, through the National Assembly,” Umahi stated. He further clarified, “We are currently reviewing projects based on available funds and will make proposals to the Federal Executive Council (FEC). Projects that have reached approximately 80% completion will be prioritized for funding in subsequent appropriations.”
Umahi also addressed misleading media reports claiming that the FEC had halted inherited ongoing projects. He clarified that neither the President nor the FEC had issued any such directive. “The FEC acknowledged the disparities between the increased project costs and the available funding. The focus was not on unit costs, which we have aligned with current market realities, but on ensuring proper budgetary provisions,” he explained.
Reiterating the federal government’s commitment to innovative funding and budgeting strategies to expedite road infrastructure development, Umahi noted that the FEC has directed the Ministry of Works to collaborate with the Ministries of Finance and Budget & National Planning. This collaboration aims to secure adequate budgetary estimates for the 2025 fiscal year, particularly for projects nearing completion.
Regarding price variations (VOP), Umahi stated, “Projects awarded in 2024 will not be eligible for VOP. However, if unforeseen market changes significantly alter construction material prices, we will revisit the VOP issue without discrimination.”
For dualization projects, Umahi directed contractors to prioritize completing one carriageway for public use while maintaining the other. Permanent Secretary Yakubu Adam Kofarmata, PhD, praised the initiative and urged contractors to support the government’s efforts for the benefit of Nigerians.
