The Minister of Works, Engr David Umahi, has said the pressure on the naira in the foreign exchange market and the removal of fuel subsidy have impacted earlier projections of what the Federal Government would need to complete inherited ongoing road projects nationwide.
Umahi stated this on Monday at a press briefing, noting that President Bola Tinubu’s administration would now require over N19 trillion to complete these projects.
According to him, the new cost represents an increase of N3 trillion over the N16 trillion projected for the projects as of August 2024.
Umahi had said that the funding gap to complete all inherited projects was about N13 trillion as of May 2023, which would rise to over N16 trillion when all projects are reviewed in line with current market realities. He stressed that this increase is due to the removal of fuel subsidy and the floating of the naira.
Addressing the media, the minister explained that these issues have continued to affect the ministry’s activities regarding project delivery.
Umahi said: “The President inherited a total of 2,604 projects as of May 29, 2023. The total cost was N13 trillion, and there was a debt to contractors of N1.6 trillion.
“When you look at the variations due to the floating of the naira, reviewing all these projects gives you a total of over N19 trillion for the ongoing projects.”
He further explained that the President decided to keep all projects active, hoping to secure funding from internal and external sources, including loans, because of his concern for Nigerians’ well-being.
Umahi stated that the President has given priority attention to the Ministry of Works, fully aware that roads and bridges can unleash significant economic benefits for citizens.
He noted that the ministry would not hesitate to revoke the Abuja-Kano road contract awarded to Messrs Julius Berger should it fail to mobilize to the site by the end of the 7-day ultimatum given.
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