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Feb
23
2024

LATEST PRESS

Federal Ministry of Works Finalizes Discussion with Janson Bridging International, Netherland on a €25-Million Grant for Construction of 28 Priority Bridges in Nigeria, Set to Fine-Tune Processes and Documentations with Federal Ministry of Finance to Realize the Project


1. In keeping with the initiative to think outside the box in rejiggling the nation's economy by the Renewed Hope administration of the President of Nigeria, His Excellency President Asiwaju Bola Ahmed Tinubu GCFR, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi CON has finalized discussions with investors from Netherland to attract a grant of 25 million Euros for the construction of priority bridges in Nigeria.

 

2. This was disclosed after a meeting of the Honourable Minister of Works with a team of investors from Netherland led by the Nigerian Ambassador to Netherland, His Excellency Oluremi Oliyide. The Honourable Minister assured the team of the positive disposition of the Federal Government towards accessing international interventions from donor agencies and other development partners to address the infrastructural deficits inhibiting economic development in Nigeria. He said that an increase in partnerships and collaborations was necessary to support the funding of the critical sector of the economy for the promotion of robust and equitable economic growth. He assured the investors that once due diligence was carried out, he would present the proposal to Mr. President for approval. He said" We have a number of projects that we can do together. But I think the best thing to do is to conclude this one, which is a grant, then get the process started, and at the point of agreement and project selection, we shall refer to Mr. President for his approval".

 

3. In his earlier remarks, the Nigerian Ambassador to Netherland said the team was in his office to discuss the offer of a grant of 25 million Euros by Janson Bridging International for investment in road infrastructure in Nigeria. According to him, "Janson Bridging is the largest modular bridge manufacturing and bridging company in continental Europe and the largest bridge rental company in the world. " He promised to assist in fast tracking the agreement implementation process on the side of the company as soon as all formalizations were concluded.

 

4. On his own part, a member of the team and International Business Consultant, Eric Okunde, said the investors were ready  with the proposal  and that they  were technically  prepared  to work  with the Federal Ministry of Works in the mapping  and design  of the projects as well as the formulation of the template for the execution of the project.

Feb
22
2024

Works Minister, Senate Committee on Finance Re-Affirm Commitment Towards Implementation of Tax Credit Scheme   The Honourable Minister of Works, Sen. Engr. Nweze David Umahi, CON and the Senate Committee on Finance have re-affirmed their commitment to continue with the implementation of the tax credit scheme as contained in Executive Order 07 issued by the administration of President Muhammadu Buhari in 2019.   This was the position taken this Thursday at the end of the interactive session between the Senate Committee on Finance; chaired by Senator Mohammed Sanni Musa, the Federal Ministry of Works and Nigeria Sovereign Investment Authority, (NSIA) on the funding of critical roads, NNPC Funding and Infrastructure Development & Refurbish Investment Tax Credit Policy Initiative. The Honourable Minister who expressed the determination of the Tinubu administration to complete the designated road projects under the tax credit scheme, told the Committee members that “we have not initiated new projects, because the President has not granted permission to do that.” Speaking further, Sen. Umahi noted that there was the challenge of inadequate funding especially the non-release of funds by NSIA as expected for the implementation of the scheme. The Honourable Minister assured that the Ministry is up to the task of actualizing the objective of the scheme as he announced that starting from next March, the Ministry would begin publishing details about ongoing projects. He said, “I can assure you that from the month of March, we will be publishing in the dailies the cost of projects, progress made for that month and other necessary information.”   In his own remarks, the Senate Committee Chair on Finance, Senator Mohammed Sani Musa disclosed the support of the Committee for the scheme, stating that the objectives of the scheme were commendable. While lauding the initiative and the need to sustain the scheme, he averred that the Senate was not against the continuous implementation of the scheme as contained in the presidential, He thus “appeal to NNPCL, the Federal Ministry of Works and the contractors handling the projects covered by the scheme to ensure those projects are completed.” Commenting on the role of NSIA in the funding of the scheme, the Senate Chair remarked that “the Committee will recommend to the Senate to pause that initial agreement between the Ministry and NSIA; “so then NSIA can now concentrate more on other investments. Let them leave the issue of road projects because road projects is an emergency and requires emergency attention,” he affirmed. Pledging the support of the Senate for the Federal Government initiative, Senator Musa, said “however you will be able to get the funding on the side of the Senate, appealing that “I want to appeal to the Federal Ministry of Works to seriously look at the issue of funding; on the side of the Senate I hope we will be able to do everything to get funding for the projects,” he reassured. The Honourable Minister was accompanied to the interactive session by senior government officials from the Ministry. ...

Feb
20
2024

Civil Servants in the Federal Ministry of Works Celebrate Sen. Umahi For Quality Leadership and Commitment to the Welfare of Workers   1. It was a day of joy, eulogies and encomiums as civil servants in the Federal Ministry of Works, Mabushi-Abuja rolled out their drums to celebrate and honour the Honourable Minister of Works, His Excellency Sen Engr Nweze David Umahi CON for his quality leadership and sense of devotion to the welfare of the workers of the Ministry. The workers under the aegis of Joint Union, Federal Ministry of Works took the Honourable Minister by surprise as they converged at the Ministry’s Main Hall on Tuesday, 20th February 2024 and sought an audience with him through their Permanent Secretary, Dr. Yakubu Adam Kofaramata.   2. The Honourable Minister, in his usual unassuming mannerism and deep sense of responsiveness, came down to see his workers and behold it was a mammoth crowd of over 1500 workers in the Ministry's headquarters who were seated to thank him for the quality leadership and devotion to the workers well-being which they have continued to enjoy since he came on board as Hon. Minister of Works.   3. The Honourable Minister was honoured with a 'Pragmatic Leadership Award' by the Joint Union of the Ministry. The workers also danced a treat with the Honourable Minister in demonstration of their love for his leadership style, which they said was unprecedented in the history of the establishment of the Federal Ministry of Works.   4. Speaking during the event, the Honourable Minister of Works thanked the workers for the surprise reception by the workers and the award of honour given to him by the workers. He particularly thanked the leadership of the Joint Union of the Ministry for their sense of happiness and thankfulness, which they demonstrated through their surprise reception. He promised to continue to serve the purpose of his appointment with the deepest sense of responsibility and in undiluted collaboration with the workforce. He announced the commencement of training programmes for the Ministry's workers from grade level 14 and above and the establishment of the Ministry's Welfare Fund for the staff to enhance their happiness, effective March 2024. He also announced the involvement of the Ministry's staff in the monitoring and evaluation of the projects executed by the Ministry nationwide and the reactivation of the whistle blowers’ desk of the Ministry to assist in reporting jobs not done in accordance with the Ministry's specifications. He urged civil servants all over the country to take Nigeria first in the dispensation of their public duties, adding that the Renewed Hope administration of His Excellency President Asiwaju Bola Ahmed Tinubu GCFR means well for Nigeria and deserves from all the support and cooperation needed for him to achieve enduring solutions to our socio-economic problems. He said, "I want to assure you that Mr. President feels your problems, and he's working out something day and night to give a solution to the teething problems facing the country. You see, the problem of our country is the problem of all of us. We need to bring back to society what we've taken from society. We need to do that. It's not the blame of the President, it's not the blame of the past President. Americans will always say America first".   5. Speaking on behalf of the entire staff, the Permanent Secretary praised the professional and administrative capacities of the Hon. Minister of Works.  The Permanent Secretary described him as a super intelligent, action-packed, and vision -driven Minister who recognizes and values the potential of the workers. He said, “The workers, and indeed, Nigerians, are happy with Mr. President for appointing a round peg to head the Federal Ministry of Works. We assure you that we will continue to work loyally with the core values of honesty, integrity, industry, and objectivity for the good of our Ministry.   6. Presenting the award of honour to the Honourable Minister, the Chairman of the Joint Union, Mr. Omobolanle Kuti stated that the event was organized for all the workers to give honour to whom honour is due. He stated that the Hon. Minister has shown a good example of a compassionate leader who cares for the welfare of his people and the progress of his fatherland.  He continued" You have shown a great difference in the way you care for our welfare, in the way you attend to mails, in supervising the projects executed under the Ministry, in your power of contract negotiations and assuring best standards in the delivery of road projects. You even supervise projects on weekends and public holidays, you come to the office early and go very late. No mail delays in your office for more than 24 hours.  We are proud of you. "   7. In his vote of thanks, the Director, Human Resources Mr. Aliyu Abdallahi appreciated the Hon. Minister for his selfless service and care for the wellbeing of the civil servants in the Ministry and described him as a special breed of politician who works for the good of all persons despite their place of origin. He also described him as a leader who builds the capacities of workers irrespective of their grade levels or competences. He prayed God to continue to prosper the Hon. Minister with greater innovative powers and benevolence of heart as he works to actualize the mandate of the Federal Ministry of Works. ...

Feb
20
2024

Federal Government and Cement Manufacturers Meet Over Escalating Price of Cement, Brainstorm on Challenges Facing Cement Manufacturing, Agree on a Price Range of N7,000- N8,000/ 50 Kg Bag   1.  The Federal Government has agreed with the cement manufacturers on the modalities to tackle the escalating price of cement in Nigeria. This was the outcome of the meeting of the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi GON the Honourable Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, the cement manufacturers and the Cement Producers Association. The meeting held closed door at the office of the Honourable Minister of Works. Mabushi, Abuja, had in attendance, the representatives of Dangote Cement Plc, BUA Cement Plc, Larfage Africa Plc and Cement Producers Association.   2.  In their separate remarks, the Honourable Minister of Works said the meeting was aimed at addressing the concerns of Nigerians on the escalating cost of cement in Nigeria marked by the disparities between the ex-factory price and the market price of cement. He expressed hope that the meeting would proffer enduring solutions to the unabating increase in cement price.   3.  Also in her remarks, the Honourable Minister of Industry, Trade and Investment said it was worrisome that the price of cement was surging despite her Ministry's regulatory policies and the Backward Integration Programme (BIP) introduced to manage cement price and development, and expressed surprise that the whole idea of the BIP on the management and development of cement manufacturing industry is not bearing the desired fruit.   4.  A communique was issued after the meeting and was read by the Honourable Minister of Works as contained in the appendix hereunder. The two Honourable Ministers also used the opportunity to re-assure Nigerians that the Renewed Hope Administration of His Excellency, President Asiwaju Ahmed Bola Tinubu, GCFR is committed to addressing the economic challenges facing the country and shall leave no stone unturned in addressing the escalating prices of commodities, including the price of cement in Nigeria.   5.  Confirming the communique as the true reflection of their deliberations, the spokespersons to the cement manufacturers and the Cement Producers Association thanked the two Honourable Ministers for their  sense of devotion to the  cause of national development and expressed their confidence  in the timely  intervention  of the Federal Government  to the  challenges facing cement manufacturing in Nigeria. The spokesperson of Dangote Cement Plc and GMD/CEO, Mr Arvind Pathak added, "the Honourable Ministers gave us a kind hearing, and we have agreed for a window of 30 days in which we re-assemble and see how best we can move on that." The spokesperson of BUA Cement Plc and Group Executive Director, Mr. Kabiru Rabiu said. "And another thing that I need to also add is that BUA is committed to bringing an additional 6 million tons of cement in the next few weeks, and that will seriously dampen the pressure of supply in the market, and we will continue to commit to this engagement." The spokesperson to Lafarge Africa Plc and Commercial Director Mr. Gbenga Onimowo said " it was very timely, honestly, listening towards the challenges that we all face as manufacturers, I think we appreciate that, and we do look forward to the solutions coming, the support they're going to give within the next coming days."   The President of Cement Producers Association, Prince David Aweta, added. "I am actually here to advocate for the six other players to join in the industry because practically, we can feel that the operators in the cement industry at the moment are so few and that is why we are having this perennial problem of cement hikes particularly during dry seasons."   DETAILS OF THE COMMUNIQUE  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. ...

First First

PUBLIC ANNOUNCEMENT


Jan
29
2024

OFFICE OF THE HONOURABLE MINISTER OF WORKS

1. The  Honourable  Minister of Works, His Excellency Sen Engr Nweze David Umahi CON has directed   Mesrss Reynolds Construction  Company  RCC,  Nigeria  Limited  to  immediately resume  work on the  15KM Eleme  to Onne Junction  on the East West Road, Rivers State  which  he suspended during his unscheduled  inspection  visit to the project  site on 27th January,2024, due to observed  infractions on the construction specifications.

2. This directive  is in accordance  with the resolutions  reached  in a meeting  with the Permanent Secretary  and key Directors  of the Ministry  together  with the management of  RCC Ltd at his office at the Federal Ministry of Works, Mabushi- Abuja, this 29th January 2024. The Honourable Minister  had ordered the suspension  of work on the project due to substandard  jobs and invited the management  of the company to report to the Ministry for  resolution of technical  issues.

3. The  Honourable  Minister further directs the contractors handling  the project to  resume  work on the four sections  of the project and  in strict  compliance  with the contract  specifications. They are also required  to  laise with the  Permanent  Secretary and the Director  in charge  of construction to engage  with the representatives  of the host communities on issues  bothering  on alleged  infringement  on the  contractors'  right  of way which  according  to them slows down the project.

4. The Honourable Minister of Works  is determined  to see to the  speedy  and quality delivery  of  Federal  Government's  jobs across  the nation in line with the vision  of the Renewed Hope administration of the President of the Federal Republic of Nigeria, His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR and he is unbending  in his resolve not to  accept  the delivery  of jobs that fall short  of standard.


OTHER NEWS

Feb
19
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
12
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

PHOTO NEWS

Feb
20
2024

CIVIL SERVANTS IN THE FEDERAL MINISTRY OF WORKS CELEBRATE SEN. UMAHI FOR QUALITY LEADERSHIP AND COMMITMENT TO THE WELFARE OF WORKERS

Civil Servants in the Federal Ministry of Works Celebrate Sen. Umahi For Quality Leadership and Commitment to the Welfare of Workers

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PHOTO NEWS

Feb
19
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

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

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