By ABAH ADAH
President Bola Tinubu may have to expend N16 trillion to complete the 18,932 kilometres inherited road projects amounting to 2,064 contracts, across the country, most of which are currently under execution, including some that have lingered for up to 18 years and above.
Minister of Works, Senator David Umahi, disclosed this while presenting his scorecard during a media conference on Thursday in Abuja.
The minister noted that the funding gap in completing the inherited projects was about N13 trillion as at May, 2023, but when valued according to current market realities, it is worth N16 trillion, hence such projects are being reviewed in line with the dynamics of the economy.
He said, “Let me start this presentation by highlighting the status of the road and bridge projects being executed by the Federal Ministry of Works at the commencement of this administration in May, 2023 and report on the achievements we made up to date, pursuant to the ‘Renewed Hope’ mandate of Mr President and how it is impacting on the socio-economic development of Nigeria.
“The present administration inherited a total of 18,932.50Km of ongoing projects with a total of 2,064 number of contracts.
“The total value of all the ongoing projects as at May, 2023 was $414,424,982,425,616.40. Amount certified, N4,734,849,328,306.77. Amount paid $3,122,628,914,427.12.
Amount owed contractors for certified works was $41,612,220,413,879.65.
“The funding gap to complete all the inherited projects is about N13trillion as at May, 2023 and will be more than 16Trillion Naira when all projects are reviewed in line with current market realities.
“Due to the removal of fuel subsidy and the floating of the naira, though it is a very sound economic decision of this administration, and considering the fact that some of the projects have lingered for between 5 to 18years, consequently, the projects are being reviewed to match with current market realities.”
Speaking on the new capital projects, Umahi said N300bn was provided in the 2023 supplementary budget for some ongoing and new emergency projects.
“260 emergency projects were provided for in the 2023 supplementary Budget to address distressed sections of roads on the Federal Road Network nationwide at a total cost of N217,264,810,083.4.
“About 90 percent of the works have been executed to completion on the projects
“Over 80 percent of the funds have been released to the ministry for payment of executed works,” he said, and gave a breakdown of the 260 emergency projects zone by zone.
He said in a deliberate move to ensure that fund does not inhibit the achievement of the Renewed Hope mandate, some alternative funding models were used to include: Presidential Infrastructure Development Fund, PIDF, Sovereign SUKUK issued by Debt Management Office, DMO, Road Tax Credit Scheme, NNPCL, NLNG, Dangote, BUA, MIN, Mainstream Energy Solutions Limited GZI Industries, and use of Multi-lateral loans, Public Private Partnership, PPP,/Highway Development Management Initiative, HDMI, and the newly established Renewed Hope Infrastructure Funding model.
According to him, the ministry will not recommend new projects in the 2025 fiscal year, but focus on completing the several ongoing and abandoned projects across the country except the president directs otherwise.
