Federal Ministry of Works

Oct

2025

LATEST PRESS

TINUBU BUILDING ROADS THAT CAN LAST 50 TO 100 YEARS — Says UMAHI

The Honourable Minister of Works, Engr. David Umahi, CON, FNSE, FNATE, has reaffirmed the Federal Government’s commitment to delivering durable road infrastructure capable of lasting between 50 and 100 years.

He made this statement during a follow-up inspection of ongoing works on the Abuja–Kaduna–Zaria–Kano Expressway, Section I (Abuja-Kaduna) on October 28, 2025.

Speaking to newsmen, Engr. Umahi explained that the Ministry is adopting modern construction methods and using materials that ensure road longevity and sustainability under varying climatic and traffic conditions.

“You cannot achieve a better California Bearing Ratio (CBR) by simply bringing laterite on the road. The existing subgrade, which has consolidated over years of traffic, has a stronger bearing capacity than a new one. That is why we are changing the approach — we are insisting on milling, stabilising, and strengthening, rather than removing old asphalt layers and replacing them with new materials,” the Minister stated.

He praised the contractor, Messrs Infiouest International Limited for the quality of work done so far, noting that the project’s design is among the most advanced in the country. He further explained the engineering method being applied to ensure lasting results.

“Wherever we have potholes within the carriageway, we don’t just patch. We treat the entire section using a stone base and, where necessary, stabilise it with cement. On the shoulders, we excavate about 10 centimeters below the existing asphalt, refill with a stone base slightly above the level, and compact properly. This ensures stability and prevents water from undermining the structure,” he revealed.

Engr. Umahi emphasised that proper milling and concrete reinforcement at critical points are key to extending the life span of Nigerian roads. “Our design now prioritises rigid pavement (concrete roads) for major highways, while flexible pavements (asphaltic roads) are being phased out gradually. Where asphalt is used, we are introducing concrete shoulders to enhance strength and prevent failure. The goal is to ensure that no section of the road fails prematurely,” he further explained.

The Minister also cautioned Engineers and Contractors against tampering with existing asphalt layers that are structurally stable. “Asphalt has a designed lifespan of about 25 years. When it is milled and recycled properly, it can serve even longer. We must adopt international best practices and stop unnecessary replacement of strong materials,” he advised.

Engr. Umahi concluded by reiterating the Federal Government’s commitment to ensuring that all ongoing projects meet the highest quality standards and deliver value to Nigerians. “We are building roads that will stand the test of time — roads that will last 50 to 100 years, save public funds, and promote economic growth, he affirmed.

The Honourable Minister of State for Works, Bello Muhammed Goronyo, Esq., has also reaffirmed that the administration of President Bola Ahmed Tinubu, GCFR, under the Renewed Hope Agenda, remains fully committed to improving the road infrastructure across the nation.

He commended the Minister of Works, Engr. David Umahi, for his dedication and hands-on approach in the field, particularly in mentoring and inspiring young Engineers to contribute, meaningfully, to national development.

The Director of Highways, Special Projects (North), Engr. Olufemi Adetunji, also commended the pace and quality of work being executed by the Contractor, noting that the Minister’s consistent inspection visits are helping to ensure timely and high-standard project delivery.

In his remarks, the Chairman of Infiouest International Limited, Mr. Joseph Aboue Jaoude, stated that the company has deployed about 300 units of equipment to the project to ensure efficient operations and the delivery of quality work within schedule.

Similarly, the Special Assistants to the President (S.A.-P) on Community Engagement, North Central and North West Zones, Dr. Abiodun and Hon. Abdullahi Tanko Yakasai appreciated the efforts of the current administration in transforming the nation’s road network, describing the progress as a true reflection of the President’s commitment to development and quality service delivery to the Nigerians.

Aug

2025

Goronyo Calls for Stronger Workplace Safety Culture as Stakeholders Rally Support Minister urges collective action, commends President Tinubu’s Renewed Hope Agenda, and is decorated as Fellow of OSHA The Honourable Minister of State for Works, Mohammed Bello Goronyo, Esq., has reiterated the Federal Government’s unwavering commitment to strengthening workplace safety standards in Nigeria, stressing that occupational health and safety must remain a national priority for sustainable development. Speaking at a national stakeholders’ workshop on Workplace Safety and Health held on 28th August 2025, at the Ministry's Hall, the Minister emphasized that workplace safety is not merely a regulatory duty but a shared responsibility that requires the active involvement of government, the private sector, labour unions, professional bodies, and society at large. “When safety measures and protocols are enforced, accidents reduce drastically, productivity improves, and the human development index records significant gains. Protecting human lives must be at the center of every workplace policy and practice,” Barr. Goronyo stated. The Minister acknowledged existing challenges such as weak enforcement, inadequate regulations, and low awareness, but called for stronger collaboration among stakeholders to adapt global best practices to Nigeria’s realities. He commended the Occupational Safety and Health Association (OSHA) for its leadership in promoting international standards, while also applauding President Bola Ahmed Tinubu’s Renewed Hope Agenda, which he said “is already yielding results across all sectors.” Highlighting Nigeria’s workforce as one of the nation’s greatest assets, Goronyo warned that the loss of lives and productivity due to unsafe work environments cannot be ignored. Research, he noted, shows that organizations prioritizing workplace safety enjoy higher employee morale, reduced injuries, and improved efficiency. The workshop also featured goodwill messages from senior stakeholders: The Permanent Secretary of the Federal Ministry of Works, Engr. Olufunsho Adebiyi (represented by the Director, Central Workshop and Equipment, Engr. Atule Isaac), stressed that workplace safety is especially critical in high-risk sectors such as construction, oil and gas, and manufacturing, as well as in the informal economy where enforcement is weak. He urged employers to treat safety as part of production costs while encouraging workers to adhere strictly to safety guidelines. He reaffirmed that the Ministry remains committed to ensuring that workplace safety is upheld across all its operations and projects. Also speaking, the President of OSHAssociation UK, Nigeria Chapter, Mr. Aderemi (JP, FIMC, CMC, MCArb, FOSHA), represented by the Chairman, Council of Fellowship (OSHAssociation), Dr. Dalhatu Mohammed, described health and safety as both a moral and economic responsibility. He urged stakeholders to embrace prevention over cure, embed a safety-first culture across workplaces, and reiterated the Association's guiding principles. Rear Admiral (Rtd.) BEE Ibe-Enwo, FOSHA, Chief Technical Officer, OSHA Nigeria, highlighted alarming statistics showing that fatalities from workplace accidents rose from 71 deaths in 1997–1999 to 238 deaths between 2014–2016, underscoring the urgency of sustained action. In recognition of his exceptional leadership and advocacy, Barr. Goronyo was formally decorated as a Fellow of the Occupational Safety and Health Association (OSHA). The prestigious honor reflects his outstanding commitment to advancing workplace safety, health standards, and the promotion of safer work environments in Nigeria. Responding to the conferment, the Minister described the fellowship as a call to greater responsibility, pledging to deepen his efforts in protecting workers’ lives, promoting safer workplaces, and ensuring that safety becomes an integral part of national development. Abdullahi Ameen Mohammed, For: Director, Press and Public Relations 28th August, 2025 ...

Aug

2025

Goronyo Commends Swift Rescue Response, Reaffirms FG’s Commitment to Waterway Safety The Federal Government has reiterated its commitment to improving safety and rescue operations across Nigeria’s waterways following a recent boat mishap in Sokoto State, which saw a quick response from rescue agencies. The Honourable Minister of State for Works, Mohammed Bello Goronyo, Esq., provided this assurance on August 25, 2025, during an interactive meeting with the Managing Director of the National Inland Waterways Authority (NIWA), Mr. Bola Oyebamji, and senior officials of the agency. The Minister praised NIWA and the National Emergency Management Agency (NEMA) for their timely intervention, noting that their coordinated rescue efforts saved several lives and ensured the prompt recovery of victims. “The rescue efforts in Sokoto demonstrate the importance of synergy between agencies. In the previous week, NIWA and NEMA were on-site even before other responders arrived, rescuing passengers and recovering victims. This level of dedication illustrates what can be achieved when we work together in unity,” Goronyo stated. The Minister also commended President Bola Ahmed Tinubu for his Renewed Hope Agenda, observing that the administration’s vision and policy direction continue to create a supportive framework for enhanced safety, infrastructure, and service delivery across critical sectors, including water transportation. In his remarks, NIWA’s Managing Director, Mr. Oyebamji, thanked the Honourable Minister for his leadership and assured that the agency would continue to strengthen its operations to protect lives and improve navigation safety on the waterways. He announced that the Federal Government is set to receive five new boats in the coming months, including one aluminum and one iron boat designated for deployment to Sokoto State. The NIWA Managing Director also revealed that immediate measures are being implemented to clear water hyacinth that obstructs free movement on the waterways in the region. Additionally, arrangements have been finalized for distributing life jackets to riverine communities in the coming weeks. Reaffirming the Government’s commitment, Minister Goronyo emphasized that such engagements should be sustained as an ongoing platform for collaboration rather than a “one-off meeting.” He underscored that the Federal Government remains fully dedicated to providing the necessary infrastructure, equipment, and policies to prevent casualties and ensure safe, efficient, and secure inland water transport across the nation. *Mohammed A. Ahmed* Director, Press and Public Relations August 26, 2025. ...

Aug

2025

FG PREPARES FOR ANTICIPATED ABUJA–LOKOJA FLOOD GORONYO DIRECTS FERMA TO REHABILITATE LOKO–OWETO–AGATU ROAD IN NASARAWA. The Honourable Minister of State for Works, Mohammed Bello Goronyo, Esq., has directed the Federal Roads Maintenance Agency (FERMA) to immediately commence the rehabilitation of the Loko–Oweto–Agatu Road in Nasarawa State, as an alternative route for commuters. in case of the envisaged Abuja–Lokoja flooding. The directive was issued during a stakeholders’ engagement with the Nigerian Association of Road Transport Owners (NARTO) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), The Minister further disclosed that the Federal Executive Council (FEC) approved several critical infrastructure initiatives, including the urgent rehabilitation of other strategic bridges such as the Carter Bridge, third Mainland Bridge, and Donga Bridge in Taraba State to strengthen Nigeria’s economic corridors and improve nationwide access for motorists. Speaking at the Minister’s Conference Room on Friday, 15th August 2025, Goronyo underscored the enormous workload of the Ministry, citing major routes such as Abuja–Lokoja, Abuja–Kaduna–Kano, Sokoto–Zaria, and many others across the North, South, East, and West. He commended President Bola Ahmed Tinubu, GCFR, describing him as “the people’s president”, and lauded his inclusive leadership and unwavering prioritisation of infrastructure as a “key enabler of growth and development” under the Renewed Hope Agenda. He highlighted ongoing interventions, particularly the Legacy Projects, including Lagos–Sokoto, Lagos–Badagry, Lagos–Calabar, Ebonyi–Nasarawa–Abuja, and the Akwanga–Jos–Bauchi–Gombe Trans-Sahara Route, stressing that no state has been left without road maintenance or construction under the current administration. He also applauded the Honourable Minister of Works, Engr. David Umahi, CON, FNSE, FANTE, for bringing engineering excellence and dedication to the Ministry’s projects. Reaffirming the Ministry’s determination to work tirelessly in delivering modern, safe, and durable infrastructure for all Nigerians, in line with the vision of President Bola Ahmed Tinubu’s Renewed Hope Agenda, Goronyo acknowledged the need for public re-orientation on road usage and enjoined the leaderships of the two associations on dedication, accountability and selfless service to the masses. “Public office is a burden, and that burden must be discharged with full accountability. There is no time for comfort zones, you must work day and night to deliver on your mandate. This is not a position for enjoyment or status, but for tireless service to Nigerians,” Goronyo stated. Speaking, the MD/CEO of FERMA, Dr. Chukwuemeka Agbasi, outlined the agency’s core focus namely; management of the road network with priority on economic corridors and addressing issues such as vandalism and overuse; and Data Collection, Updating Nigeria’s road corridor map with traffic statistics to guide maintenance planning. This, according to the Agbasi, was supported by a technical working group tasked with preparing a draft of Memorandum of Understanding (MoU). The President, NARTO, Alhaji Yusuf Lawal Othman, praised President Tinubu’s initiative on the delivery of Compressed Natural Gas (CNG) buses, 5 units of 50-seater buses, 20 units of 14-seater buses, and 50 units of 50 -seater buses, which have collectively reduced transportation costs for NARTO operations by over 30%. He also remarked the impact of the Ministry’s collaboration with the Federal Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in enforcing axle load limits, revealing that, effective from 1st October, no truck will be allowed to load more than 45,000 litres, a move expected to reduce road damage and extend infrastructure lifespan. Similarly, IPMAN President, Alhaji Abubakar Maigandi Shettima, pledged full support for the Ministry’s efforts, stating "even a blind man can see this government is doing its best to keep Nigerian roads in order. We stand fully behind your work.” Queenet Iheoma-Hart, For: Director, Press and Public Relations 15th August 2025 ...

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PUBLIC ANNOUNCEMENT

Jul

2024

OTHER NEWS

Jan

2024

New Permanent Secretary Works Yakubu Kofarmata Assures of Innovation to Achieving Renewed Hope Agenda

The newly deployed Permanent Secretary to the Ministry of Works has given assurance that subsequent new innovations in the Ministry shall be geared towards achieving Mr. President's Renewed Hope Agenda in infrastructural development, especially in road construction and rehabilitation for ease of doing business in all sector of the Nigerian Economy. He made this remark after signing and receiving the hand over notes in the Ministry. The new Permanent Secretary for the Ministry of Works Mr. Yakubu Kofarmata, was extremely glad to be back to the Ministry, haven served preiviously in the Ministry as an Asst. Director.

He was Particularly delighted seeing a good number of female leaders and architects still present, adding that it was an indication that the Ministry of works is a place that can bring the needed change in the country.

Mr YAKUBU KOFARMATA said in his words “I come here as a brother, friend and colleague and so we have to work together to help the President as well as the Honorable Minister to achieve all that they have spelt out in their agenda”.

Kofarmata further expressed optimism that his leadership would be a new beginning that would bring about innovation for the Ministry and the Country at large.

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