Minister Umahi reveals that the Nigerian government needs over N19 trillion to complete inherited road projects. Learn more about the infrastructure challenge.
The Minister of Works, Engr David Umahi, stated that the pressure on the naira in the foreign exchange market and the elimination of fuel subsidies have affected earlier estimates regarding what the Federal Government would require to finish ongoing road projects across the nation.
At a press briefing on Monday, Umahi mentioned that completing these projects under President Bola Tinubu’s administration would now demand over N19 trillion.
He stated that the new cost is N3 trillion more than the N16 trillion estimated for the projects as of August 2024.
Umahi stated that as of May 2023, a funding shortfall of approximately N13 trillion existed to complete all inherited projects. He noted this amount would exceed N16 trillion once all projects are reassessed according to current market conditions. He emphasized that the rise is attributable to the elimination of fuel subsidies and the floating exchange rate for naira.
Speaking to the media, the minister clarified that these issues have continuously impacted the ministry’s ability to deliver projects.
According to Umahi, as of May 29, 2023, the President had taken on a total of 2,604 projects valued at N13 trillion. Additionally, there was an outstanding debt of N1.6 trillion owed to contractors for these projects.
Considering the fluctuations caused by the naira’s floating, an evaluation of all these projects reveals a total exceeding N19 trillion for those currently in progress.
He elaborated that the President chose to maintain all projects, aiming to secure funding from both internal and external sources, including loans, due to his concern for the well-being of Nigerians.
Umahi mentioned that the President has prioritized the Ministry of Works, recognizing that roads and bridges can significantly boost economic benefits for citizens.
He stated that the ministry would not hesitate to cancel the Abuja-Kano road contract awarded to Messrs Julius Berger if they fail to commence work at the site by the end of the 7-day ultimatum.
Peoplesmind
