Umahi Reveals N19tn Needed to Complete Ongoing 2,604 Road Projects
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The Minister of Works, David Umahi, has disclosed that the funding required to complete 2,604 ongoing road projects has escalated to N19 trillion, up from an initial estimate of N13 trillion.
This increase emphasises the mounting challenges in infrastructure development amid economic pressures.
Speaking at a press briefing in Abuja on Monday, Umahi attributed the rising costs to fluctuations in the foreign exchange rate and the soaring price of bitumen.
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He emphasized that despite these hurdles, the ministry has successfully completed 85% of 330 emergency projects awarded in July 2024.
Umahi expressed frustration over comments made by Remi Oseni, Chairman of the House of Representatives Committee on Federal Roads Maintenance Agency, who suggested that the minister had mismanaged priorities regarding road conditions across the country.
He countered that the focus on price variations was essential to safeguard the limited budget available for projects.
“We inherited a total of 2,604 projects with a cost of N13 trillion as of May 29, 2023, and a debt of N1.6 trillion to contractors. The ongoing economic shifts have inflated these costs significantly,” he stated.
He elaborated on the alarming economic conditions, noting that the naira has depreciated to N1,700 per dollar, while the price of bitumen has surged from N600,000 to N1.2 million per ton.
Umahi also mentioned the government’s approval of N300 billion in the 2023 supplementary budget to address various palliatives, highlighting the successful procurement and execution of over 330 road and bridge repair projects.
Furthermore, he pointed out that about 10 long-standing projects had been terminated due to delays exceeding 15 years, stressing that the current administration prioritizes special mega road projects.
Umahi confirmed that insecurity in the North-West has delayed some projects, revealing that approximately 50 workers have been kidnapped by bandits.
He assured that the ministry is committed to addressing these issues and urged stakeholders to support ongoing infrastructure efforts.
