The Minister of Works, David Umahi, has refuted media reports alleging that the Federal Executive Council has halted inherited road projects.
During a meeting with contractors in Abuja, Umahi emphasized that such claims are misleading, clarifying that neither President Bola Tinubu nor the FEC issued such a directive.
Instead, the ministry was instructed by the president to review all national projects to prioritize them based on available funding.
Umahi stated, “Some of these projects were awarded 18 years ago, some 10 years ago, others five years ago.”
Regarding new projects, he noted, “If we have appropriation that has not been completed, at least, one kilometer, we are not going to carry out such appropriation. That is what FEC is concerned about. We can’t have N500 million on budget but procurement is supposed to be N50 billion or N100 billion and you go ahead to award such a project. We have been directed not to do so.”
The Minister reaffirmed the Federal Government’s commitment to introducing funding and budgeting innovations to accelerate road infrastructure development nationwide.
He mentioned that the FEC had instructed the Ministry of Works to collaborate with the Federal Ministries of Finance, Budget, and National Planning to establish proper budgetary estimates for the 2025 financial year. This effort targets projects that were not appropriately budgeted for but have reached around 80 percent completion, ensuring their completion and delivery.
He explained that projects with significant procurement costs but minimal appropriation and completion milestones would be reviewed according to section 51 of the Special Conditions of Contracts.
“On issues of Variation on Price (VOP), all projects we awarded in 2024 will not attract any VOP. We have made it as a policy that such projects cannot get any variation. However, within the course of the year and the project execution, if there are issues changing the basic market prices of construction materials to a certain extent, we will revisit the issue of VOP and it will not be selective,” Umahi said.
The minister assured contractors that the Federal Government is open to contract review and cost augmentation for inherited ongoing projects, acknowledging the significant rise in contract element costs due to the inherited challenging economy. However, he noted that this would depend on funds availability.
Umahi highlighted that the decision to allow for the review and augmentation of inherited ongoing projects’ costs reflects the president’s generosity and commitment to completing all inherited projects. He added, “The President promised to look 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 per cent completion, then we will 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.”
Umahi directed contractors working on dualization projects to first complete one carriageway and make it available for public use before starting work on the other lane.
