A whopping N19 trillion, up from an initial estimate of N13 trillion, is required to complete 2,604 ongoing road projects across the country, Mr. Dave Umahi, the Minister of Works, has disclosed.
Addressing a media briefing in Abuja on Monday, Umahi attributed the rising costs to fluctuations in the foreign exchange rate and the soaring price of bitumen.
He said in spite of the hurdles, the ministry has successfully completed 85% of the 330 emergency projects awarded in July 2024.
Umahi expressed frustration over comments made by Rep. 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, however, disagreed with the lawmaker’s position, saying the focus on price variations was essential to safeguarding 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,” Umahi said.
Harping on the economic situation in the country, the minister noted 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 recalled the federal 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.
He announced 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 also disclosed that bandits had kidnapped over 50 workers on road projects, attributing delays on some projects to insecurity in the North-West.
He restated the ministry’s commitment to addressing the challenges, urging stakeholders to support ongoing infrastructure efforts.
Author
Leave a comment