At a press briefing in Abuja, Minister of Works David Umahi announced the estimated cost to complete Nigeria’s 2,604 ongoing road projects has risen from N13 trillion to N19 trillion. This surge, attributed to currency devaluation and rising bitumen prices, underscores the Ministry of Works’ funding hurdles. Umahi noted that inflation, Unstable foreign exchange rates, and the elimination of fuel subsidies have all contributed to the cost hike since President Tinubu inherited these projects in May 2023.
Despite these financial challenges, Umahi reported that 85% of 330 emergency road and bridge repair projects have been completed under a N300 billion allocation approved in 2023. He defended the ministry’s focus on managing project costs, responding to criticism from the House Committee on Federal Roads Maintenance Agency (FERMA) Chairman, who claimed the ministry’s priorities were misaligned. Umahi countered that adjustments and project prioritization were essential to prevent budget erosion and emphasized the ministry’s commitment to accountability.
In addressing ongoing challenges, Umahi highlighted the termination of some long-standing projects and delays due to security issues, including recent kidnappings of 50 workers in the North-West. He also warned Julius Berger Plc of a potential revocation of the Abuja-Kaduna-Kano project if no progress is made. Efforts are underway to secure additional resources, with plans to publish details of the completed projects next week and seek loans to address the N1.6 trillion contractor debt and escalating project costs.
