Federal Ministry of Works

BREAKING NEWS

Apr

2024

Those Criticizing the Ongoing Lagos- Calabar Coastal Highway Project Being Done by The Renewed Hope Administration Of President Asiwaju Bola Ahmed Tinubu Either Have Little Knowledge of the Concept of EPC+F On Project Financing Or Are Deliberately Sacrificing The Cause Of Development At The Altar Of Politics

The trending posts of criticisms by some notable politicians on the propriety and priority of the Lagos-Calabar coastal highway project being executed by the Renewed Hope administration of His Excellency President Asiwaju Bola Ahmed Tinubu GCFR are no doubt baseless thoughts of critics who are either bereft of the knowledge of the workings of the project initiative or they deliberately want to sacrifice the modest developmental efforts of Mr. President at the altar of their political ambitions. It is unthinkable that such highly placed people fail to understand the various elucidations provided by the Honourable Minister of Works, His Excellency, Sen Engr Nweze David Umahi CON on when the project was conceptualized, the various administrations that attempted but failed to carry out the project, the economic and technical considerations that gave rise to the commencement of the project under the Renewed Hope administration, the funding and procurement details and indeed the dimensions, importance, priority and propriety of the projects in the national developmental trajectory.

For the avoidance of doubt, the Lagos- Calabar coastal highway project is being done under EPC +F. What does this type of funding entail? This is a project financing mechanism in which EPC+F contractors also arrange financing for the project. EPC+F is Engineering, Procurement and Construction plus Financing. Engineering here includes design and specification. This initiative provides a fixed price, fixed date, and transfers risks to the contractor. This type of funding requires only a counter- part funding from the Federal Government. Such funds are sourced by contractors where they have confidence in the economic policies of government, which essentially entails allowing the participation of the private sector in the road infrastructure development through PPP or EPC+F.

In the recent Inauguration of the Committee on Compensation of owners of properties that will be affected by section 1 of the Lagos- Calabar Coastal Highway, the Honourable Minister emphasized the nature of the project funding and the workings of EPC + F when he said, "And graciously, Mr. President had approved that this section three will start from Calabar, which is the end point of the project, and start running towards Akwa Ibom. So, the 700 km is procured under phase one, in phases, and it's EPC +F. EPC+F is engineering, procurement, construction, and finance. And so, under this kind of arrangement, the contractor is expected to bring in a certain amount of money, and Federal Government is expected to pay certain counterpart funding."

No patriotic Nigerian should discourage this kind of project where funding is substantially from the contractor. There is no doubt that Mr. President is aggressively tackling the backlogs of uncompleted road projects. In the 2023 Supplementary Budget, Mr. President approved funds for intervention on the over 260 dilapidated roads nationwide. The 2024 appropriation made provision for capital investment on our critical roads across the 6 Geo- political zones of Nigeria. The Honourable Minister has already made a great difference in the road infrastructure development roadmap of this administration through his new innovations on road construction and rehabilitation, his power of supervision, and his contract negotiation power which is second to none in the history of the Federal Ministry of Works. He has been touring around and supervising the various ongoing projects of the federal government, and the difference is already there. The people are testifying of the quality and speed of road projects being executed by the Renewed Hope administration. He has proven track records on road infrastructure development. He is not into rhetorics like many politicians who talk high but can do only less. The administration of President Tinubu is doing roads that will stand the test of time. The roads he is fixing will facilitate economic recovery. The patriotic Nigerians are already applauding the good efforts of Mr. Presidentt, but professional politicians are busy criticizing a landmark project that will launch Nigeria into the league of the best economies of the continent.

On the importance of the Lagos-Calabar coastal highway project to the economy of the nation, it is clear that the coastal highway, when completed, will foster national economic growth. Notably,
all roads in the country are important as reflected by the interventions of this administration on road rehabilitation across the nation, but the coastal highway offers much more economic benefits to the nation because of its connectivity to the North and South through the existing spurs. The road, when completed, has the potential to increase Nigeria’s GDP and trigger industrialisation, create trade, enhance the transportation of goods and services, and safety of road users.The road is going to be the biggest super highway in Africa in terms of the structure and solidity as we all as utility value, having ten lanes with a rail track designed for concrete technology, covering 700 kilometers. It is going to attract foreign direct investment to Nigeria, and it is going to trigger economic development. It is going to develop the potential of our coastal businesses, especially at the local economic corridors, and boost tourism and marine businesses.

LATEST PRESS

Apr

2024

Lagos- Calabar Coastal Highway: A Renowned Policy Analyst Describes Cost of Project as One of The Most Effective Project Figures in The World, Says Sen. Umahi's Negotiation Power is Second to None Blueprint Newspaper Written By Bode Olagoke A think tank body of policy analysts on the platform of the Independent Media and Policy Initiative (IMPI) Wednesday justified the N2.8trn to be expended on the construction of the Lagos-Calabar coastal highway. The group said the cost of construction of the highway "is appropriate." It also faulted former Vice President Atiku Abubakar's criticism of the project, saying there is enough proof to support the cost of the mega project. IMPI in a statement by its chairman, Niyi Akinsiju, in Abuja Wednesday said its study of the situation shows that all the claims by the Peoples Democratic Party (PDP) presidential candidate were off the mark and targeted at discrediting the project. The think tank group acknowledged the track record of the project handling firm in constructing coastal highways with reinforced concrete in many countries, citing the successful handling of the Bar Beach Shoreline protection. On Atiku's criticism of the cost of the project, the policy group insisted that a cost analysis of road projects similar to the Lagos-Calabar highway in some parts of the world show that the cost of the project was appropriate. The statement reads: "We note that there is no unified standard pricing template for the cost of building a kilometre of road anywhere in the world. The realities of road building have much to do with several variables: location, train, type of construction, number of terrain, lanes, lane width, surface durability, and the number of bridges, to name a few. "Yet, for engagement, we reviewed some cost estimates in some other countries to establish the context of fraud or otherwise that Waziri Abubakar is trying to throw up. "To build a 2-lane road of 12 metres wide of each lane with no bridges in states of North Eastern United States of America is $3.34m per km (when converted to Naira using the N1200/$ adopted by Umahi, it comes to N4.08bn per km) while the same 2-lane road in South Eastern USA with no bridges is $ 3.78m per km (N4.53bn per km) "According to the Texas Department of Transportation, the average cost of building a concrete road in rural areas is around $2.5m per mile, while in urban areas, it can costs upwards of $5m per mile. "In California, the estimated cost of building a concrete road ranges from $3 million to $6 million per mile, depending on the location and other factors. In Australia, average road project costs were around $5.1m (N6.12bn) per lane kilometre in 2017. "But in Bangladesh, according to the World Bank, the estimated cost of construction is $6.6m (N7.92bn) per kilometre for the Rangpur-Hatikumrul highway, $7m (N8.4bn) per kilometre for Dhaka-Sylhet highway, $11.9 million (N14.28 billion) per kilometre for Dhaka-Mawa highway. This underscores cost differentials in road construction because of peculiarities in terrains." ...

Apr

2024

Honourable Minister of Works Inaugurates Lagos-Calabar Coastal Highway Section 1 Compensation Committee, Gives 10 Days Deadline For Completion Of Assignment 1. In keeping with the established rules on compensation and the ideals of transparency of the Renewed Hope administration of His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR, the Honourable Minister of Works, His Excellency Sen Engr Nweze David Umahi CON has constituted a committee to review the report on the Environmental and Social Impact Assessment in respect of compensation for section 1, Lagos- Calabar Coastal Highway project. The committee made up of 19 members is required to interface with stakeholders and property owners that will be affected by the project with a view to recommending those who are entitled to receive compensation from Federal Government as required by law. The Honourable Minister directed that the commitee should work strictly with the terms of reference, which is to verify and authenticate the list of those to be compensated and submit a report within 10 days effective 18th April 2024. He said, "We are setting up a review committee to look at the work done by the Environmental and Social Impact Assessment (ESIA,) and the works to be reviewed by this committee is very simple, and it's just to interact with the property owners that are going to be affected, and then in their presence, in the presence of the committee and the ESIA Consultant and the contractor, look at the compensation as enumerated to be paid, and where possible, you visit the site. We are using the federal rates to do our enumeration. I know very well that there is nobody that is ever enumerated that is ever satisfied with how much is to be paid, but we are bound by the law, and so we are using federal rates." 2. The Honourable Minister promised to ensure a seemless and timely payment of compensation on the Lagos- Calabar Coastal Highway project but warned that only those legally entitled to compensation would be shortlisted. He said, "The moment the property owner signs, and then we have a form that we give to them to fill, and indicate the bank account; the moment that is done, within 72 hours, we authorize payment. The contractor is going to be paying directly to all those who are affected, and this we are committed to doing. This verification will start Wednesday in Lagos, and of course, we have to make it very clear that 250 meters legally belong to the Federal Government. So if you have a title within these 250 meters and it's not a title from Federal Government, then it is encumbrance, and only Mr. President can give a waiver if he feels so for the person to be paid." 3. The meeting which was held via zoom in the Honourable Minister's conference hall Mabushi-Abuja with the affected property owners and other stakeholders, was in furtherance of the resolutions earlier reached in the stakeholders engagement meeting held by the Honourable Minister of Works in Lagos on 11th April 2024 whereof opinions were ventilated from different groups of stakeholders and decisions were reached on the need for a review of the report on the enumeration by the Consultant on the Environmental and Social Impact Assessment of the affected areas. The committee members were constituted to reflect the different groups of stakeholders, including Lagos State Government, affected Local Government Areas Traditional Rulers, estate developers and residents, as well as professional bodies. 4. The committee members are as follows: 1. Engr (Mrs) Olukorede Kesha (FCW, Lagos State) - Chairman 2. Rep. of Director, Bridges and Design. - Engr Oladele Sola 3. Rep of Honourable Minister of Works. - Barrister Joseph Ekumankama 4. Engr Olufemi Dare. - FMW, Lagos 5. ESIA Consultant. - Dr. Eugene Itua 6. Rep 1 ESIA. - Suv. Popoola Lateef 7. Rep 2 ESIA. - Emmanuel Eneh 8. Rep. of Oba Oniru. - Mr. Yemi Stephen. 9. Rep. of Oba Elegushi. - Mrs. Peju Omotayo 10. Rep. of Oba Ojomu of Ajiran land. - Hon. Jide Akintoye 11. Rep of Oba Onibeju of Ibeju - Mr Agbaje Adesegun 12. Rep. of Eti Osa Local Government. - Adeola Adetoro 13. Rep. of Ibeju Lekki Local Government. - Hon. Moruf Isah 14. Olawale Ojikutu (Min of Lands, LASG) - Secretary 15. Rep. Of LASG Surveyor General. - Moyosore Faji 16. Rep. Min of Physical Planning LASG. - Kunle Bello 17. Rep 1 Hitech. - Mr. Willie 18. Rep 2 Hitech. - Mr. Ashton 19. Rep DLS. - Mrs Igboko ...

Apr

2024

ARMED FORCES FULLY BACKING THE RENEWED HOPE ROAD INFRASTRUCTURE INITIATIVES, DESCRIBE ROAD AS CRITICAL TO NATIONAL SECURITY AND AS A CATALYST FOR SUCCESSFUL MILITARY OPERATIONS AGAINST BANDITRY The Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi CON has been assured of the full backing of the Nigerian military in his efforts towards realizing the lofty road infrastructure objectives of the Renewed Hope administration of the President and Commander-in-Chief of the Armed Forces of Nigeria, His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR. This assurance was conveyed by the Chief of Defence Staff, Federal Republic of Nigeria, General Christopher Gwabin Musa, OFR during a courtesy call to the Honourable Minister of Works, held at the Ministry's conference hall, Mabushi-Abuja on 16th April 2024. Speaking during the courtesy call the Defence Chief commended the glaring determination of the Honourable Minister of Works to return Nigeria's road infrastructure to the part of glory knowing the importance of road to the socio-economic transformation of the nation. He placed on record the strategic importance of road to national security and its place in achieving successful military operations against acts of banditry. He said, "We are following your activities on the internet, and we know you're almost everywhere. I want to commend you for the efforts you are putting in. We know how determined you are to ensure that our roads are back. We all know that without roads, there can be no peace. That's true for rural areas and urban areas. Roads are significant and very important to the growth of any nation. Despite all the challenges, we’ve seen how comments have been made, both professionally and unprofessionally, to your person, but you’ve been strong. I want to encourage you, sir that the Armed Forces of Nigeria is solidly behind you. We will continue to provide every necessary support that you require. We are just a phone call away. Whatever there is, that you would want us to do for you, be rest assured, we will be there, because we know the relevance and importance of having good roads in any society." The Chief of Defence Staff also appealed to the Honourable Minister to take into consideration the need for interventions on the deplorable condition of some roads in the North East where bandits are taking advantage of the poor conditions of roads in the area to defy and relegate security operations. He noted that the areas where the military were recording high casualties of both manpower and equipment, especially in Maiduguri, were the areas the bandits use Improvised Explosive Devices (IEDs) in their attacks knowing fully well the deplorable conditions of the roads in those areas. He said, "So for us, roads are critical to our success in our operations. I want to appeal to you, whatever it is, whatever it takes, if we can fix most of these roads that we have, it will greatly assist us in carrying out our operations. Once we have good roads, the funny thing about North East, especially Borno State, will be resolutely tackled. Most of the distances are not that long." In his response, the Honourable Minister of Works thanked the Defence Chief for the wonderful work the Armed Forces are doing to rejig the security architecture and rid the nation of banditry. He particularly thanked Mr. President who is the Commander-in-Chief of the Armed Forces for the successes he has recorded in the fight against banditry in Nigeria. He said that the military deserves the cooperation, support, and solidarity of all Nigerians in their efforts and sacrifices to secure the citizenry. He decried the recent brutal killing of the military personnel in Okuama Delta State and thanked the military for their sense of maturity in the face of the needless provocation. "Let me offer my deepest condolences to you for your personnel that were brutally murdered at Okuama in Delta State while doing everything to ensure peace and security in the area. It's quite very unfortunate. Let me thank Mr. President for the maturity and thank the military led by you for the maturity. Those personnel who were killed are children of parents. They have children, and they have wives. Our hearts go out to you and their families, and we condemn that very terrible and barbaric act. We caution those who are making very unhealthy statements on the matter, as if the lives that were lost were the lives of animals" The Honourable Minister assured the Defence Chief of the preparedness of the Ministry in addressing the concerns of the military on the conditions of roads, especially in the areas of their operations in the North East. He said, "Let me appreciate your concerns over our roads, especially as it affects your programmes in North East. And let me assure you that when we get those routes and your major concerns, we are going to analyze them to know the ongoing projects among them, and then know why the projects are slow in their execution. It could be for the reason of funding. Everything has become a priority in our road sector development. We would like to analyze it and together we will take it to Mr. President, who has put the security of life and property ahead of any other thing." He further said, "I'm very sure that Mr. President, as usual, will give it the desired attention. It's not his will that any person will die for the reason of a bad road. So I'm reassured by the character and the content of Mr. President that something will be done. We have to get our designs and figures right, and together, we can do that." ...

PUBLIC ANNOUNCEMENT

Apr

2024

OTHER NEWS

Feb

2024

Meeting of Cement Manufacturers – Dangote Cement Plc, BUA Cement Plc, Larfarge Africa Plc & Cement Producers Association with the Honourable Minister of Industry, Trade & Investment, Dr. Doris Uzoka-Anite and the Honourable Minister of Works, Sen. Engr. Nweze David Umahi, CON held at the Office of the Honourable Minister of Works, Mabushi, Abuja on Monday, 19th February, 2024

1. The meeting noted the challenges of the manufacturers like:
   a.   Cost of gas;
   b.   High import duty on spare parts;
   c.   Bad road network;
   d.   High foreign exchange; and
   e.   Smuggling of cement to neighbouring nations.

2. The government noted the challenges and reacted as follows:
a. Federal Ministry of Industry, Trade and Investment to seek some remedies from Mr. President on cost of gas and import duties.

b. Federal Ministry of Works to give more attention to fixing of the roads, especially around the locations of the manufacturers.

c. On the issue of smuggling cement, the Federal Ministry of Industry, Trade and Investment to deepen the already started engagement with the National Security Adviser on how to stop the smuggling.

3. The cement manufacturers and the Government noted that the current high price of cement is abnormal in some locations nationwide. Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement. Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on the location.

4. Going forward, Government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her distributors or retailers found wanting.

5. Government expects the agreed price to drop after securing government's interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.

6. The meeting agreed to reconvene in 30 days to review progress made.

SPEECHES

Dec

2023

Brief by the Honourable Minister of Works, Senator. (Engr) Nweze David Umahi CON, FNSE, FNATE on the Occasion of the Presentation and Defence of the Ministry’s 2024 Budget io the Joint Committee on Works

The Chairman,
Senate Committee on Works,
Distinguished Senators,
The Chairman,
House Committee on Works
Honourable Members

1.0 INTRODUCTORY REMARKS
I wish to express the appreciation of the Ministry to the Joint National Assembly Committee on Works for this opportunity to present and defend the Ministry’s 2023 Budget Performance and 2024 Budget Proposal. The Ministry received the letter Ref. No. NASS/S&H/COW/01/10/1 dated 30th November, 2023 from the Joint Committee on Works requesting for details and submissions on issues pertaining to the performance of the 2023 Appropriation and 2024 Budget proposal. These documents have also been earlier submitted in response to the said letter. I will also like to explain and highlight some aspects of the submissions in the course of this budget defense.

2.0 OVERVIEW OF THE 2023 APPROPRIATION
The sum of N534, 455,695,989.00 was appropriated to the Ministry of Works and Housing and its Parastatals in the 2023 fiscal year. From this amount, Works and Housing Sectors of the then Ministry was allocated a total Capital of N453,255,980,966.00. Following the demerger of the Ministry, Federal Ministry of Works was allocated the sum of N383, 351,656,449.00 as Capital, Overhead was in the Sum of N525,362,343.96 and Personnel was in the Sum of N6,916,751,203.00. The details of the Appropriation are as follows:

(a)    Capital Allocation:
i. Main Ministry of Works:               N383,351,656,449.00
ii. Parastatals:                                 N 46,215,578,221.00
Total                                             N429,567, 234, 670.00

(b)   Overhead Cost:
i. Main Ministry:                    N535,362,344.40
ii. Parastatals:
a. Office of the Survey-General of the Federation (OSGOF)         N239, 664,804.00
b. Federal School of Surveys (FSS), Oyo          N50, 523,550.00
c. Federal Roads Maintenance Agency (FERMA)      N17, 525,286,292.00
d. Council for the Regulation of Engineering in Nigeria (COREN) N9, 691,801.00
e. Surveyors’ Registration Council of Nigeria (SURCON)             N14, 971,301.00
    Total                                                                                  N18,375,500,092.4

(c)   PERSONNEL COST
i.    Main Ministry                            N6,916,751,203.00
ii.   Parastatals                               N5,234,644,736.00

Total N12,151,395,939.0

3.0 2023 BUDGET RELEASES/PERFORMANCE

As earlier said, the Capital Allocation to the Ministry was N383, 351,656,449.00 after the demerger of Federal Ministry of Works and Housing. The releases so far to the Ministry was in the sum of N184,165,147,332.29, which represents 48.01% of the Capital Allocation in the 2023 Appropriation. This leaves a balance of N199, 405,010,166.71 to be released by the Federal Ministry of Finance (FMF).

3.10. Capital Projects

The sum of N184,165,147,332.29 released up to date to the Ministry from the 2023 Budget Appropriation had been utilized for payments of some certified Certificates for executed works on roads and bridges by Highway, projects of Engineering Services and Common Services Departments. It is to be noted that as at the end of November 2023 the Ministry had a cumulative unpaid certificate in the sum of N1,507,873,365,516.02 (One Trillion, Five Hundred and Seven Billion, Eight Hundred and Seventy-three Million, Three Hundred and Sixty-five Thousand, Five Hundred and Sixteen Naira, Two Kobo) only for all inherited on-going highway and bridge projects. Apart from the pressure on the resources to pay, there is the inadequacy of annual budgetary provisions where in most cases N100m or N200m and even less was provided for projects estimated to cost above twenty- fifty billion Naira or even more. Awarding such projects even though appropriated is difficult on its own because the provision is inadequate to even pay 10% for mobilization whereas the Procurement Act prescribes 30% mobilization. The details of all the 2023 Budget Performance for Highways Capital Projects are provided in the document attached as Annexure I.

3.20 Overhead

Out of the Total Approved Overhead of N535,362,344.40 the sum of N312,294,700.90 was released to the Ministry for overhead costs for the period January - July, 2023, which represents 58.33% of the budgetary provision with an outstanding sum of N 223,067,643.50.

3.30 Personnel Cost

The Personnel Cost of N12,598,351,319.00 for the Ministry is being implemented through the Integrated Payroll and Personnel Information System (IPPIS) programme in the Office of the Accountant-General of the Federation.

4.0 REVENUE GENERATED

The sum of N723,063,678.62 was generated as revenue from January to November, 2023 and all the revenue realized have been remitted to the consolidated Revenue Account (evidence of IGR remittance enclosed).

5.0 2024 BUDGET PROPOSAL
The total sum of N 657,228,251,596 was proposed for the Federal Ministry of Works and its Parastatals for Capital, Personnel and Overhead estimates in the 2024 Appropriation Bill. The breakdown of the proposals is as follows:

5.10   Capital Budget Proposal
a). Main Ministry of Works                                       N 566,466,977,361
b). Parastatals
i. Federal Road Maintenance Agency(FERMA).         N 51, 282,456,911
ii. African Regional Institute for Geo-Spacial Information Science and Technology AFRIGIST (RECTAS) N 104,039,920
Grand Total                                                           N 617,853,474,192

5.20 Overhead Budget Proposal
a). Main Ministry of Works                           N 668,116,856.00
b). Parastatals:
i. FERMA                                                   N 22,027,209,696.
ii. RECTAS/AFRIGIST                                 NIL
          Grand Total                                      N 22,695,326,552

5.30 Personnel Cost Proposal
i. Main Ministry of Works                          N 12,598,351,319
ii. Parastatals                            N 4,081,099,533
             Grand Total                                N 16,679,450,852

Please note that without any presidential pronouncement, the following Parastatals which have been under the Ministry of Works have been provided for in the Budget Proposal for the Ministry of Housing and Urban Development as follows:
i.   Office of the Surveyor-General of the Federation (OSGoF);
ii.   Federal School of Surveying, Oyo (FSS);
iii.   Council for the Regulation of Engineering in Nigeria (COREN); and
iv.   Surveyors’ Council of Nigeria (SURCON)
It will be good that these Committees do get these Parastatals back to the Federal Ministry of Works.

6.0 CATEGORIZATION OF ONGOING HIGHWAY PROJECTS UP TO 2023

The Ministry undertook a total of 2,097of on-going/inherited projects at a total Contract Sum of N13,835,640,624,786. The total amount certified to date stood at N4,772,770,148,140.41, while the total amount paid was in the sum of N3,140,569,453,163,82 as at November, 2023. 3 details are shown in Annex I.

Some of the projects are categorized according to special funding mechanism as follows:

6.10   Highway Project Financed with Presidential Infrastructure Development FUND (PIDF).
A total of Four selected critical projects are being funded under the Presidential Infrastructure Development Fund (PIDF) Project which is managed by the Nigerian Sovereign Investment Authority (NSIA). The projects are:
a.   Expansion and upgrading of Lagos-Ibadan Expressway Section I (Lagos-Shagamu);
b.   Expansion and upgrading of Lagos-Ibadan Expressway Section II (Shagamu-Ibadan);
c.   Reconstruction/Rehabilitation of Abuja-Kaduna-Kano Road; and
d.   Construction of 2nd Niger Bridge and two Bypasses at Asaba and Onitsha.

As at date, the total sum of N846, 365,489,635.12 has been certified out of the initial projects cost N1,535,375,595,518.43. This translates to a performance of 55.12%. The Lagos-Ibadan Expressway has been substantially completed to about 90% but we still lack fund to complete the project. The Abuja-Kaduna-Kano Road is in three sections with about 127km uncompleted in section I (Abuja-Kaduna). Section II which is Kaduna-Zaria is fully completed and section III which is Zaria-Kano is on-going with 20km left uncompleted. The total cost of the three sections is about N655billion. The contractor is seeking for a review of contract to about N1.37trillion to complete the project. We are reviewing the request. However, even though the project will not get up to N1trillion when fairly reviewed, we believe that the unit rates ought to be reviewed. For example, the subsisting unit rate of Asphalt on the project is about N11,000 per square meter, whereas the real cost now is not less than N20,000 per square meter. We have requested the contractor to execute the first 40km of section I on concrete. It is important to note that we do not have fund to continue the project by February 2024 if no funding is injected into the project.

The 2nd Niger Bridge has been completed and was recently handed over to the Ministry. Additionally, there remains the construction of the Approach roads 2A and 2B which were awarded by FEC but have funding challenges to take-off. The remaining two Bypasses in Asaba (2A) and Onitsha (2B) awarded to Julius Berger Nigeria Plc and Reynods Construction Company Nigeria Limited respectively, during the last Administration was initially estimated at about N200billion but now with inflation, the cost may be up to N260billion. There is no funding for these projects and the projects have not taken off. Let me note that without these Bypasses, the completed 2nd Niger Bridge will be almost inoperative. The details of these projects are as shown in Annexure II.

6.20 Highway Projects Financed with the Sovereign SUKUK Fund
The Federal Government through the Debt Management Office (DMO) initiated Sukuk Funding Programme for financing road infrastructure in 2017. The total sum of N683.122bn was raised to fund 25, 28, 44, 71 and 63 number projects in years 2017, 2018, 2020, 2021 and 2022 respectively. All the works milestones for the Sukuk in year 2017, 2018, 2020 and 2021 were completely drawn down while the 2022 Sukuk, issued in the sum of N110,000,000,000.00 is on-going. A total of 63 selected critical projects are being funded under the 2022 Sovereign Sukuk Issuance. As at end of November 2023, the total sum of N50,537,288,079.45 was drawn down translating to a performance of 46%. The details of execution of the projects and drawdown of the 2022 Sukuk Bond is as shown on Annex III;

6.30 The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase I
The NNPC joined the Road Infrastructure Development & Refurbishment Tax Credit Scheme programme by undertaking to finance 21 roads in the sum of N621bn with total length of roads of about 1,804.6km under the NNPC Phase I. These roads were identified by key stakeholders such as the NNPC, Petroleum Tanker Drivers Association (PTD) and the Ministry etc. as being crucial for the efficient distribution of petroleum products across the nation. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N247,729,252,899.54 out of the Federal Executive Council (FEC) approved sum of N621,237,164,794.59 representing 39.88% performance. The funding gap here due to inflation is estimated at over 250bn. The details of NNPC Phase I Funded Projects are attached as Annex IVA;

6.40 The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase II
The NNPC Phase II Funded Projects were approved by the Federal Executive Council in the sum of N1,969,700,168,910.78 for the execution of 44 No. roads with total length of 4,554.19km while the initial Contract Sum was about N3.969trillion. This leaves a funding gap of over N2trillion at the time of starting the projects. Presently, with inflation, the funding gap to have the NNPC Phases I & II completed shall stand at about N3.56trillion (Inflation about N1.5trillion) for two years from now. This funding gap is neither appropriated for nor has any source of funding. This means that without the kind intervention of this Distinguished and Honourable Joint Committees of Works, these projects will not go on mostly from March 2024 when the NNPC funding would have been exhausted. Your kind intervention and advice are highly, highly and urgently solicited. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N752,093,618,603.51 representing 38.18% performance. The level of drawdown seems low because most of the projects needed to be reviewed due to the inflation, The details of NNPC Phase II Funded Projects are attached as Annex IVB.

6.50 Other projects funded under Road Infrastructure Development & Refurbishment Tax Credit Scheme.
Several Companies have leveraged on the Executive Order No.7 of 2019 to commit investments in the construction/rehabilitation of roads and obtain Tax credit. Companies like NLNG Limited, Dangote Industries Limited, BUA International Limited, MTN Nigeria Communications Plc, Mainstream Energy Solutions Limited and GZI Industries projects have embraced the Road Infrastructure Development & Refurbishment Tax Credit Scheme program. Twenty-one projects at a total cost of N1.338trillion outside of those being funded by the NNPCL are being executed under this Scheme. The details are attached as Annex IVC; and
a) Projects funded from Multi – Lateral Loans.
4Nos. major highway and bridge projects are being funded through Multilateral Loans and grants from the African Development Bank (AfDB) and the China Exim Bank. The details of these projects are attached as Annex V.

7.0 2023 APPROPRIATION OF ALL ONGOING EMERGENCY/SPECIAL REPAIRS AND LIMITED REHABILITATION PROJECTS

These are projects being executed under emergency repairs works along the Federal Highway network. The projects under this category have a total contract cost of N419,841,989,869.00, with a total amount certified in the sum of N307,486,496,856.58, while the total amount paid is in the sum of N 123,213,264,774.77, the Ministry is indebted to Contractors to the tune of N 184,273,232,081.81. The details of these projects are included in Annex I.

8.0 INTERVENTION ON TERTIARY INSTITUTIONS PROJECTS
These are projects being executed under the intervention in Federal Government Tertiary Institutions. Out of 108 projects under this category at a total contract cost of N15,641,954,804.16, 61 projects have been completed and handed over at a total cost of N10,790,866,435.35 as at end of November 2023. Twenty-one projects at a total cost of N3,874,482,841.53 have been completed awaiting handover, while the remaining 26 at a total cost of N3,491,998,752.77 are on-going. The details of these projects are attached as Annex VII.

9.0 OVERGROWN VEGETATION CONTROL PROJECTS
These are projects being executed under the intervention on Federal Government Tertiary Institutions. The projects under this category have a total contract cost of N2,333,448,750.00, with a total amount certified in the sum of N1,795,927,968.71, while the total amount paid is in the sum of N62,060,468.75, the Ministry is indebted to Contractors to the tune of N1,733,867,499.96. The details of these projects are included in Annex I.

10.0 PROJECTS PRIORITIZED FOR COMPLETION 2022-2024
In spite of all odds, 21 major road and bridge projects have been completed and some were commissioned, while others are ready for commissioning. The total cost of the completed major road and bridge projects is in the sum of N498,802,362,642.46 with a total length of 489. 97km. Also, to be completed in 2024 is the 260 Emergency Repair works in the 2023 Supplementary Appropriation at a total cost of about N260bn. The detail of completed projects is attached as Annex VI.

11.0 BRIDGE CONSTRUCTION/ REHABILITION PROJECTS
Under the 2023 budget, the Ministry undertook massive rehabilitation of bridge projects, some of which have never been maintained since they were constructed over 50 years ago. Human activities on these bridges (i.e. vandalization, fire incidents) have left these bridges in deplorable state and unserviceable conditions. The Ministry is trying to sustain these critical works in the 2024 budget as well as undertake the construction of new bridges where there was none in order to reduce travel time as well as the reconstruction of bridges to replace collapsed ones.

These projects are:
a).   Comprehensive Repairs of the damaged elements of the Third Mainland bridge superstructure: This was procured this year and works are currently ongoing and is satisfactory so far. The second Phase which involves the substructure repairs is being processed for award.
b).   Comprehensive emergency repairs of Eko and Marine bridges in Lagos State: Works are ongoing on these bridges. The Contractor has attained appreciable progress and is being supported financially to enable expeditious completion due to the emergency nature of the works.
c).   Proposed Rehabilitation of Carter, Iddo, Liverpool and Iganmu bridges in Lagos State: The present condition of the above bridges calls for urgent rehabilitation works to restore the bridge integrity and forestall further deterioration that may be detrimental to road users. In this regard, the procurement process is already ongoing within the Ministry for the emergency award of contract for the repairs/rehabilitation of these bridges.
d).   The Rehabilitation of Jimeta bridge in Adamawa State and Murtala Mohammed bridge at Koton Karfe along Lokoja – Abuja Road; Works on these bridges are ongoing and will soon be completed.
e).   Proposed construction of Shendam bridge in Plateau State, Reconstruction of failed bridges in Enugu State and the Construction of Buruku bridge in Benue State; and
f). Reconstruction of three failed Bridges on East/West Road

These are new bridges that are required to ameliorate the sufferings of the host communities as well as other commuters. Procurement of contract for the construction of these bridges are already at an advanced stage and will soon be completed. Funds will be needed to bring them into reality.

12.0 NEW PROJECTS IN 2024 BUDGET
There are new projects captured under the 2024 Budget at a total cost of N102,956,624,538.00. See Annexure 13

13.0 PROSPECTS AND PROSPECTS OF THE 2024 BUDGET FOR HIGHWAY PROJECTS

The policy thrust regarding the 2024 budget for highway projects is to ensure completion of some critical on-going projects which have attained significant levels of completion while keeping the rest alive through minimal appropriation. 693 new projects have been proposed in the 2024 budget, which are critical to improving road network connectivity and thus enhancing traffic circulation on the Federal Road network, necessary for boosting socio-economic activities in the country. The primary objective is enabling the Ministry achieve its mandate in providing a quality Federal Road network that serves as an environment to aid socio-economic growth of the country.

The main challenge to highways development in the Country remains inadequate funding. As at date, Government is committed to highway contractors to the tune of about N13.835 trillion with a total of about N1,507,873,365,516.02 unpaid certificates for executed works. Secondly, the dearth of younger Engineers/Technical Officers in the Ministry as a result of embargo on employment is affecting effective project supervision at the sites. It is expected that more sources of funding of highway projects be explored as well as lifting the embargo on employment of needed Engineers/Technical officers at middle level to enhance supervision of projects. Our Ministry has set up six committees to review all debts, approved and unapproved variations on prices of basic rates, and all augmentations that occurred before May 29th 2023 and from May 30th 2023 till date.

14.0   RECOMMENDATIONS
14.10 From the fore-going, I would like to recommend as follows:
a)   The provision of an Emergency Fund of about 30% of the Budget Provision to cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons;
b)   An increase of the Ministry’s present budgetary allocation to about N1.5tr to complete at least 10 selected critical roads and bridges in each of the six geo-political zones of the country;
c)   Urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
d)   Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the projects unit rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while unit rates regime will take effect on contractors in line with the current realities of the construction industry.
e)   More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges;
f)   Raising of Bonds from the Capital Market to finance road development in the country;
g)   Creation of an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) can be effective; and
h)   That appropriations for projects be such that no projects when started should last for more than four years.

14.20 ISSUE OF ASPHALT (FLEXIBLE) VERSUS CONCRETE (RIGID) PAVEMENT
It would be my great pleasure to clarify the misunderstanding of the Ministry’s new policy direction regarding the use of Rigid pavement on her projects. I have to state categorically that no Contractor is prevented from executing the scope works originally signed with the client once certain conditions are observed, which are provision of a 15year shelf-life Insurance Guarantee for the works and a maximum of 5% of Variation of Price (VoP) in the Contract. The Ministry’s new policy is to prevent excessive augmentation of contracts considering the scarcity of Forex and weakening of the Naira against the Dollar which makes the cost of bitumen (which is fully imported) increase in geometric progression against the arithmetic progression rise in cement prices in concrete road pavements. In these times of rising inflation and scarce resources, the Country needs to look inwards to conserve foreign exchange.

15.0 COMMENDATIONS
We thank the President and Commander-in-Chief of the Federal Republic of Nigeria, His Excellency, Senator Asiwaju Bola Ahmed Tinubu, GCFR for the intervention of his Renewed Hope administration in the Works sub-sector and approval of an enhanced budget envelop for the Federal Ministry of Works. We also thank the leadership of National Assembly, the Chairmen and members of the Works Committees and indeed members of the National Assembly for their painstakingness in ensuring the speedy passage of the 2024 Appropriation Bill.

Nweze David Umahi
Federal Ministry of Works
December, 2023

Highways Code & Manual

Volume VII Environmental Management Published Version (i)

Volume V Structural Design Published Version (i)

Volume IV Drainage Design Published Version (i)

Volume II Secondary Design Published Version (i)

Volume I Geometrics Published Version (i)

Volume VI Road Signs & Markings Published Version (i)

Volume III Pavement & Materials Design Published Version (i)

Services

Requirements for Goods & Services in RSDT - FRDP

Services Rendered In LHD

HPD Services, Permit Approval, Duration and Cost

Requirements for Obtaining Products & Services Public Procurement Depart.

Engineering Services Department

Guidlines for Grant of Access, Right of Way Information

Participation in Public Private Partnership

Ongoing Projects

List Of Ongoing Federal Highway Projects

List of On“Going Federal Highway Projects in South East Zone 2018

PHOTO NEWS

Mar

2024

HONOURABLE MINISTER OF WORKS, HIS EXCELLENCY SEN. ENGR. NWEZE DAVID UMAHI, CON, WITH OTHER DIGNITARIES DURING THE OFFICIAL HANDOVER OF THE FIRST PHASE OF THE PROJECT, MADE UP OF 47.47 KILOMETERS DUAL CARRIAGEWAY, TO HITECH CONSTRUCTION COMPANY LTD

Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi, CON, with other dignitaries during the official handover of the first phase of the project, made up of 47.47 kilometers dual carriageway, to Hitech Construction Company Ltd

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PHOTO NEWS

Mar

2024

HON. MINISTER OF WORKS, HIS EXCELLENCY SEN. ENGR NWEZE DAVID UMAHI CON (RIGHT) WITH THE DIRECTOR, INFRASTRUCTURE AND URBAN DEVELOPMENT, MIKE SALAWOU HELD AT THE OFFICE OF THE HONOURABLE MINISTER FEDERAL MINISTRY OF WORKS, THIS 5TH MARCH 2024.

Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi CON (Right) with the Director, Infrastructure and Urban Development, Mike Salawou held at the office of the Honourable Minister Federal Ministry of Works, this 5th March 2024.

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Downloads

REPORT ON MONITORING & EVALUATION OF THE CONSTITUENCY PROJECTS AWARDED IN THE YEAR 2021

FEDERAL MINISTRY OF WORKS POLICY ON AUGMENTATION, PRICE VARIATION, RAISING OF FINAL OR INTERIM CERTIFICATE AND INCREASE OR DECREASE ON WORK SCOPE

TOUR OF DUTY AS HONOURABLE MINISTER OF WORKS & HOUSING OF THE FEDERAL REPUBLIC OF NIGERIA (2015 - 2023)

REPORT ON MONITORING & EVALUATION OF THE CONSTITUENCY PROJECTS AWARDED IN THE YEAR 2020