Federal Ministry of Works

Jan

2026

LATEST PRESS

UMAHI, NIGER GOVERNOR STRENGTHEN COLLABORATION TO FAST-TRACK FEDERAL ROAD PROJECTS

The Honourable Minister of Works, H.E. Sen. Engr. David Umahi, CON, FNSE, FNATE, has reiterated the Federal Government’s determination to accelerate the delivery of ongoing Federal road and bridge projects in Niger State, following a high-level meeting with the Governor of Niger State, His Excellency, Farmer Umaru Mohammed Bago.

Speaking during the meeting held at the Ministry’s headquarters, Mabushi-Abuja today, 28 January, 2026, the Minister commended Governor Bago for his untiring efforts toward infrastructure development and urban renewal across Niger State. He noted, with appreciation, that many of the state government's interventions are on Federal road corridors that directly benefit the citizens.

Engr. Umahi acknowledged the numerous challenges associated with Federal roads in the State, stressing that road infrastructure development is a shared responsibility, irrespective of jurisdiction. He praised the significant interventions in areas such as Bida, Minna, and Suleja, describing them as impactful urban renewal efforts that have enhanced mobility and boosted economic activities.

The Minister assured the Governor of the Federal Government’s strong support, particularly on key projects including the Minna–Suleja Road (71km), which has received approval from the Bureau of Public Procurement (BPP) and is awaiting consideration by the Federal Executive Council (FEC).

He disclosed that President Bola Ahmed Tinubu, GCFR, has personally directed that the project be prioritised and assured that any advance intervention funds expended by the Niger State Government would be refunded.
On the Jebba and Lambata Bridges, the Minister informed his August visitor that integrity tests and work on the expansion joints are ongoing.

Engr. Umahi stressed the urgent need to curb indiscriminate parking, trading activities, and traffic congestion on bridges, which accelerate their structural deterioration. “Bridges are not designed to carry static loads but built for the dynamic flow of traffic,” he advised. He announced plans to engage key stakeholders, including transport unions and tanker drivers, to safeguard national assets and extend the lifespan of bridges.

The Minister further disclosed that all ongoing NNPC-funded road projects, nationwide, have now been approved for takeover by the Ministry, in line with Mr. President’s directive. Funding templates are currently being finalised to ensure the seamless continuation of works on such projects. He also directed officials of the Ministry to provide comprehensive status reports on all Federal road projects in the state to enable prompt interventions, where required.

Earlier, Governor Bago expressed appreciation to the Minister and his team for their responsiveness and collaborative approach. He highlighted the strategic importance of Niger State as Nigeria’s central corridor linking the North and South, with over 100,000 trucks traversing major routes in the State on a daily basis.

The Governor raised concerns about severe traffic congestion, infrastructure degradation, and security challenges along critical corridors, such as Jebba–Lambata–Minna–Suleja. He called for urgent attention to the structural integrity of the Jebba Bridge and other heavily trafficked bridges, emphasising the need for structural testing, traffic control measures, and accelerated rehabilitation works to avert potential disasters.

Governor Bago also commended the Federal Government for the ongoing concrete pavement works on the Abuja–Kaduna Expressway and urged that similar durable solutions be applied to other major highways in the country.

Both leaders reaffirmed their commitment to sustained collaboration to fast-track federal road projects, enhance road safety, stimulate economic activities, and improve the quality of life for the people of Niger State and Nigerians at large.

Oct

2025

Ministry Officials Pay Condolence Visit to Essan Community Over Lives Lost in Tanker Explosion ~ Promise Accelerated Palliative Works The Federal Ministry of Works has extended its heartfelt condolences to the people of Essan Community in Katcha Local Government Area of Niger State following the tragic tanker explosion that claimed several lives and caused extensive damage in the area. The delegation, on behalf of the Honourable Minister of Works, Engr. David Umahi, CON, expressed deep sorrow over the unfortunate incident. The Director, Highways, North Central, delivered the Minister’s message. Salihu Kolapo Ahmed, during a visit to the community head, the Dekechi of Essan, Alhaji Muhammad Dauda Muhammad. Engr. Umahi commiserated with the bereaved families and the entire community, describing the incident as a painful and avoidable tragedy. He assured the people that the Federal Government remains committed to improving the condition of the road network in the country to prevent similar accidents in the future. > “The Federal Ministry of Works mourns with you at this difficult time. We pray for the peaceful repose of the departed souls and strength for the families they left behind,” Engr. Umahi conveyed through his representative. “This sad event underscores the urgent need to accelerate, especially, the ongoing Reconstruction of the Lambata-Lapai-Agaie-Bida Road in Niger State. We are fully committed to ensuring safer and more reliable road infrastructure to avert future occurrences of such tragedies.” Following the message, prayers were offered for the repose of the departed souls and divine comfort for the grieving families. Responding, the Dekechi of Essan, Alhaji Muhammad, expressed deep appreciation to the Honourable Minister for his compassion and prompt response. He lamented the poor condition of the road linking the area, describing it as a “death trap” that has continued to endanger the lives of road users. > “We thank the Honourable Minister for standing with us in our moment of grief. The bad state of the road has made movement extremely difficult and dangerous. We appeal to the Federal Government to give urgent attention to this route so that lives can be saved,” the community head said. He called on the management of the Federal Road Safety Corps (FRSC) to stop, forthwith, the overburdening of articulated vehicles with human beings, revealing that most of those who lost their lives in the inferno were such travelers not indigenes. The Ministry reaffirmed its resolve to prioritise the reconstruction of the road as part of ongoing efforts to enhance road safety, ease transportation challenges, and support economic development in the State and Nigeria, in general. “The Honourable Minister has directed that immediate assessments be carried out on the affected section with a view to implementing lasting engineering solutions that will improve safety and mobility,” Engr. Ahmed stressed. The visit underscores the Ministry’s human-centered approach under the leadership of Engr. David Umahi, CON, remains focused on building durable road infrastructure and responding promptly to the needs and concerns of Nigerian communities affected by road-related tragedies. Engr. Ahmed described the pace of work on the affected alignment as “too slow and unacceptable,” directing the contractor, Messrs CGC (Nig.) Ltd. to quickly deploy more resources and approach the work from more locations. “The contractor needs to mobilise more equipment to the site and let us have free movement of vehicles. Failure to do so, in the next few days, will attract decisive action,” he stated. The Project Manager, Mr. Fan Bo, assured that the company would mobilise more equipment within days to intensify work and ease the movement of people, goods, and services on the critically failed portions of the road. The Deputy Director, Construction at the Ministry of Works and Infrastructure Development, Niger State, Engr. Nasir Ahmed, disclosed that the Minister’s directive was aimed at ensuring free vehicular movement and reducing frequent accidents along the busy corridor. “This is a follow-up to the Niger State governor’s efforts. The Minister wants serious action so that there will be no more gridlocks or accidents on this road,” he added. He urged motorists, especially truck drivers, to remain patient and cooperate with the contractors during the construction period. “Their impatience causes a lot of the nuisances we see. They should be patient and follow instructions so that work can progress smoothly,” he advised. The 124.8-kilometre project, awarded several years ago, was phased into two sections by the current administration, with Phase 1 covering 92 kilometres from Lambata to Agaei, valued at N39 billion, remaining 10 kilometres to completion, and Phase 2, which covers the most critical section from Agaei to Bida, is soon to be awarded. ...

Oct

2025

FEDERAL GOVERNMENT STRENGTHENS PARTNERSHIP WITH ISLAMIC DEVELOPMENT BANK TO ACCELERATE ROAD INFRASTRUCTURE DEVELOPMENT The Honourable Minister of Works, Engr. David Nweze Umahi, CON, FNSE, FNATE, has reiterated the Federal Government's commitment to strengthening partnerships with international development institutions to fast-track the completion of major road and bridge projects across the country. Engr. Umahi said this on the 22nd October 2025, when he received a delegation from the Islamic Development Bank (IsDB) Regional Hub (RH) in Nigeria, led by its Team Leader, Operations, Mr. Ibrahim Chalive, during a courtesy visit to his office in Abuja. The discussions held, centred on deepening the collaboration between the Federal Ministries of Works, Finance, and the IsDB, to fund and implement key components of the Four (4) Renewed Hope Legacy Road Projects under the administration of His Excellency, President Bola Ahmed Tinubu, GCFR. The Honourable Minister also emphasised that infrastructure remains a major driver of economic growth, noting that the Ministry is committed to transparent, innovative, and cost-effective project delivery. He reaffirmed that President Tinubu’s Renewed Hope Agenda accords high priority to road development as a catalyst for economic emancipation, job creation, and improved mobility of goods and people nationwide. He also expressed a profound gratitude and appreciation to the Honourable Members of the National Assembly for their support towards infrastructure development, particularly in facilitating funding interventions that align with the Renewed Hope Legacy Projects. Umahi further commended the Islamic Development Bank for its sustained interest and partnership in Nigeria’s infrastructure sector, describing the visit as a constructive step toward consolidating gains already achieved and expanding the scope of cooperation. In his remarks, Mr. Chalive conveyed the Bank’s satisfaction with the Ministry’s ongoing reforms in engineering design, quality assurance, and project management. He assured that the Bank remains committed to providing both financial and technical support to strengthen Nigeria’s infrastructure base. After their discussions, both parties agreed to establish a joint technical team to identify priority areas and develop a framework for collaboration that ensures accountability, transparency, and timely project delivery. This reinforced collaboration marks another milestone in the Federal Government’s drive to modernise Nigeria’s road network and advance the vision of sustainable national development. In attendance at the meeting was the Special Assistant to the President (S.A.-P.), Stakeholders Engagement, South East, Barr. Chioma Nweze. Mohammed A. Ahmed, Director, Press and Public Relations. 22nd October 2025. ...

Oct

2025

WORKS MINISTER,SEN. UMAHI REPRIMANDS CCECC NIGERIA LIMITED OVER POOR CONSTRUCTION METHODOLOGY ON ABA BOUND OF ENUGU-PORT HARCOURT EXPRESSWAY, DESCOPES PORT HARCOURT BOUND,ISSUES 14 DAYS TERMINATION NOTICE FOR SUB-STANDARD PERFORMANCE In his avowed determination to entrench the new construction codes and regulations in the method statement of construction works under the Federal Ministry of Works, the Honourable Minister of Works, His Excellency, Sen Engr. Nweze David Umahi,CON, has reprimanded the poor construction methodology deployed by China Civil Engineering Construction Company Limited on the rehabilitation works on the Aba bound of the Rehabilitation of Enugu-Port Harcourt Expressway, contract No. 6252. The Honourable Minister, who was on a routine supervision of ongoing road projects within South South and South East on Sunday 19th October 2025, expressed displeasure over the recalcitrance of the contractor in complying with the new construction codes and regulations which are aimed at building enduring road infrastructure for the nation. Speaking during the inspection visit, the Honourable Minister decried the state of the 43-km Aba-Port Harcourt inherited ongoing project handled by CCECC, which he said was on the verge of total collapse. He directed that a 14-day notice of termination be issued to the contractor, having regard to the various warning letters issued to the contractor over their poor construction performance on the said job. He further directed that the Port Harcourt bound of the project be descoped and reawarded to a competent contractor. "If you get to Port Harcourt end, which they did about two years or thereabout, the entire road has almost totally failed. We have been writing them to maintain this road. They have refused, and so I have to take responsibility and take decision. Number one, the Port Harcourt bound is descoped, no longer going to be done by CCECC.I will direct the Ministry of Works to scout out for very qualified indigenous contractors to handle the Port Harcourt bound. *They should be the contractor that will start work immediately while we sort out for funds for them._Number two, for the site handled by CCECC, they should issue them 14 days notice of termination of the job. And I want this directive to go very wide. After 14 days, they fail to mill out the binder and replace it properly,the job will be terminated; they have to initiate it; they have to commit to doing that. Even if they are going to do it during the dry season, they have to maintain the ones that they have done and they put in writing that they're going to mill out the binder at their own cost, and then be able to put a new binder, which we have paid for. He reiterated that putting binder for a stretch of the project without putting wearing is unacceptable. On another development, the Hounourable Minister has commended the quality of work on the Rehabilitation and Reconstruction of Enugu-Port Harcourt Dual Carriageway, Section II - Umuahia Tower-Aba Rail/ Road crossing in Abia State, Contract No. 6209 handled by M/S Arab Contractors O. A. O Nigeria Limited. The 56-km inherited ongoing project was noted to have reached 85% completion. "They are one of our best, the first five. Even we want them to maintain from Aba to Umuahia, the completed section. So they're working very hard. The controller is also doing very well. I wish the controller to visit all the projects of the Federal Government in Abia State. He should be able to visit all the projects in Abia State at least once a week, so that if there is a problem of impending danger, impending of problem of cost, you let us know. The Honourable Minister noted the terrible situation of inherited road projects nationwide, which are all receiving priority intervention by the Renewed Hope administration of the President of Nigeria,His Excellency, Bola Ahmed Tinubu GCFR He thanked Mr. President for the encouragement given to the Federal Ministry of Works to turn around the road development trajectory of Nigeria. _"In Nigeria, all the roads became a priority because of the terrible situation of the roads that the President inherited. But he's doing his best. And we are also working with him to offer our best in the country. We feel so bad when our people can't move from one point to the other all over the country. I feel so sad. That is usually my lowest moment. But, I'm still encouraged with the support the president is giving on roads and bridges because that is the basis of economic activities, and I think that we are very lucky to have him because the economy is breaking now. We are the third largest growing economy in the whole world, so we will get there" Hon. Barr. Orji Uchenna Orji Special Adviser ( Media) to the Honourable Minister of Works 20th October 2025 ...

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PUBLIC ANNOUNCEMENT

Nov

2025

OTHER NEWS

Dec

2023

Farewell To a Rare Gem, Okwadike

Hon. Minister of Works, Sen. Umahi commiserates with the family, government and people of Anambra State over the death of the former Governor of Anambra State, Dr Ezeife.

I received with a deep sense of sympathy the sad news of the glorious exit of the former Governor of Anambra State and elder statesman of note ,His Excellency, late Dr Chukwuemeka Ezeife who journeyed to eternal glory on the 14th day of December,2023 at the of 85 years.

2. Late Dr Chukwuemeka Ezeife was an advocate of selfless leadership and crusader for the cause of justice and national integration. He was unequivocal on his stand for an egalitarian nation where all Nigerians shall enjoy equal, just and fair treatment notwithstanding their natural, cultural or religious inclinations. He was a prominent voice on national conversations. The loss of this dear nationalist has no doubt created a deep vacuum in the hearts of his loved ones and, indeed, all who shared in the values of his ideals. I heartily convey my deepest condolences to his family, the government and people of Anambra State for the loss of this great iconic leader and national figure who left inspiring life and times worthy of emulation. May his gentle soul rest in perfect peace, amen.

3. Please, accept the assurances of the compassionate considerations, esteemed regards and best wishes of my family, the management and staff of Federal Ministry of Works.

H.E. Sen. Engr. Nweze David Umahi, FNSE, FNATE, CON, GGCEHF
Hon. Minister of Works

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