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Jan
21
2025

LATEST PRESS

INFOQUEST NIG LTD WAS NEVER AWARDED ANY CONTRACT ON ABUJA- KADUNA ROAD AS FALSELY AND MALICIOUSLY REPORTED IN A PUBLICATION OF DAILY TRUST NEWSPAPERS OF 21/01/2025.

-DAILY TRUST TO RENDER UNRESERVED APOLOGY TO FEDERAL MINISTRY OF WORKS FOR UNJUSTIFIABLE FALSEHOOD

 

The Honourable Minister of Works, His Excellency, Sen. Nweze David Umahi CON has rebutted in strong terms  the unwarranted, false,  misleading, and damaging report published in Daily Trust  Newspapers of  21st January 2025, which falsely represented the Federal Ministry of Works as having awarded a section of Abuja-Kaduna-Kano road dualization to Infoquest Nigeria Ltd.

In a press conference held on 21st January 2025 at the Conference Hall of the Honourable Minister of Works and attended  by the Honourable Minister of State for Works, Rt. Hon. Barr. Mohammed Bello Goronyo, the Permanent Secretary, Federal Ministry of Works, Engr. Folunso  O. Adebiyi and  key directors of the Ministry, the Honourable Minister, described as mischievous, insensitively misleading and injurious the statement credited to him in the said publication, where he was wrongly quoted to have said that  Infoquest Nigeria Ltd secured a "No objection" of N252.89 billion from the Bureau of Public Procurement ( BPP) for the rehabilitation of a section Abuja- Kaduna- Zaria-Kano road and where they described  the Ministry as having awarded  the said contract to an obscure company.

 

He made it clear that the Ministry had no business relationship with Infoquest Nigeria Ltd. He further made it known that the company that has a contractual relationship  with the Ministry on the said project is Infiouest International Limited and that the company  is corporately active and is absolutely in compliance with all legal requirements and regulations set by the Companies and Allied Matters Act.

He berated the mischief  created  by the publication as a deliberate orchestration by a cartel to malign the Ministry, undermine  the efforts of the Renewed Hope administration in revolutionizing  road infrastructure  development and demarket the company that has proven capacity in road construction. He demanded from Daily Trust Newspapers a public apology to the Federal Ministry of Works to be published in at least 5 national dailies for unjustifiably publishing falsehood against the Ministry of Works.

 

The Honourable Minister also alluded  to the mischiefs and deliberate misrepresentation of facts contained in the sponsored publications made in several  national dailies by Julius Berger Plc recently on the reason why they reneged in their contractual obligations in respect  of the section of  Abuja-Kaduna-Zaria-Kano road they were handling before  it was determined.  

He  wondered why the coordinated onslaught of falsehood, blackmail, gangup by adversaries to the policy of government just because of the Ministry's insistence on a new order of  value for money, quality assurance and best practices  in project pricing and execution. He urged the public and the press to join in this desirable fight against national sabotage by some contractors.

 

In his remarks, the Honourable Minister of State for Works said he was delighted  by  the proactiveness and resoluteness  shown by the Ministry in decapitating  the intentions of those who made the false publication against  the Ministry which according to him was intended to distract  the Ministry and undermine its confidence before Nigerians. He called  on the media operators not to allow themselves  to be used by the fifth columnists to publish unfounded reports to undermine  the Renewed Hope agenda but should always crosscheck  their information  with the appropriate authority so as to let out only the truth to the public.

 

In his vote of thanks, the Permanent Secretary described  the press briefing as thoughtful and timely. He  harped  on the importance of development journalism and urged the media to always uphold  the truth in their professional duties of information dissemination rather than allow themselves to be used as a tool in the hands of enemies of our national development.

Dec
17
2024

Adebiyi Takes Over from Kofarmata as Permanent Secretary, Federal Ministry of Works Engr. Olufunsho Olusesan Adebiyi has taken over as Permanent Secretary, Federal Ministry of Works from Yakubu Adams Kofarmata, Ph.D, Tuesday, 17th December, 2024. The handing over ceremony, which was brief, took place on Tuesday, 17th December, 2024. While addressing Management and Staff, the outgoing Permanent Secretary commended them for working with him, harmoniously, also appealed to them to extend the same to his successor to enable him to succeed in his new assignment. He pleaded, "I beg of you, extend the same hands of cooperation, support and comradeship to him and I am sure you will never regret it.” In his acceptance speech, the incoming Permanent Secretary applauded the outgoing for his excellent track record, while in office, noting that many of the Ministry’s staff have learnt a-lot from working with him. He added that Kofarmata has always been there for the Staff of the Ministry day in, day out towards ensuring that the proper things were done. While soliciting for equal or more dedication and cooperation, Adebiyi disclosed that the challenges facing the Ministry and the country, at large, are enormous, insisting that only when all hands are joined together, would they be tackled. According to him, "I want to assure you that I will do my best by the grace of God. The challenges are enormous before us and I am sure that we would overcome them, together.” He emphasized that one of the challenges  being faced by the Ministry is the allegation of lopsidedness in the geopolitical spread of projects, stressing that one region will accuse the Ministry of not having as much as the others and the others would, likewise, do the same. Adebiyi assured that with God, the issues would be resolved, amiably. The Permanent Secretary pleaded that "I want to appeal to all of us to ensure that we strive toward delivering on the mandate of Mr. President to provide critical road infrastructure, in line with the Renewed Hope Agenda.” Engr. Adebiyi is being redeployed from the State House, while Kofarmata is reporting to the Office of the Head of the Civil Service of the Federation (OHCSF) for further posting.   ...

Dec
11
2024

HONOURABLE MINISTER OF WORKS MEETS WITH BUREAU OF PUBLIC PROCUREMENT (BPP) HARPS ON NEW PARADIGM OF SEAMLESS BUREAUCRACIES TO END DELAYS IN PROJECT EXECUTION As part of efforts to end delays in the implementation of the Renewed Hope agenda on the road sector development, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze Umahi, CON has had a partnership discussion with the management of the Bureau of Public Procurement. (BPP) on the need for a new paradigm of seamless bureaucracies in public procurement processes for efficient and timely project delivery.  In a meeting held at the Federal Ministry of Works, Mabushi-Abuja on 10th December 2024, the Honourable Minister stated that for the works sector to achieve greater prospects in innovation, efficiency, and economy in the road infrastructure revolution agenda of the present administration and to best respond to the citizens’ yearning for road sector intervention, there must be a deliberate effort to remove all bureaucratic constraints to project evaluation by the Bureau of Public Procurement. He noted the core mandates of the Bureau, which among others are to foster accountability, consistency in pricing, effectiveness in contract execution, and value for money, and urged them to see delay as one of the greatest inhibitors of the objectives of the establishment of the Bureau. "We seek closer cooperation and collaboration to enable the Ministry to Fastrack delivery of the road infrastructure projects inherited and those initiated by the Renewed Hope administration. When we came on board, we insisted on best practices, and we introduced innovations to ensure we give Nigerians enduring road infrastructure that is fit for purpose. We therefore need a collaborative resolve to end unnecessary delays in the procurement processes." He pointed out that different procurement methods, including restrictive, selective, and competitive bidding measures, are geared towards achieving value for money and effective service delivery to Nigerians. On his part, the Director-General, Bureau of Public Procurement, Dr. Adebowale Adedokun commended the Honourable Minister  for the purposeful initiatives of the Federal Ministry of Works under his watch and assured him of enhanced synergies with the Ministry so that the noble objectives of the Renewed Hope administration of His Excellency, President Asiwaju Bola Ahmed Tinubu, GCFR, on the works sector would be achieved. He said, “The interesting thing about you is that you don't fail in your duty, which I have observed. You start, you end with something that is unique about you, and you're passionate about what you want to do. We are glad when you extended the invitation for us to come here. We know you see BPP as a worthy partner towards ensuring that Mr. President's objectives in respect of road infrastructure are achieved timely, transparently, and well-accounted.” He thanked the Honourable Minister for the initiative to hold the meeting to discuss areas of procurement challenges. He said, “We are here to hear your challenges, and for us to also hear our own challenges and reach an understanding of how to make sure we work together to achieve the same goal for logical completion. From my experience in this job over the years, works is an arm of government that Nigerians see every day. They talk about it every day. If there is the agency or Parastatal or Ministry that if things fail, then all Nigerians will shout against Mr. President, it is the Ministry of Works. So we place serious premium on closely working with you to ensure we deliver on the mandates in a way that value for money is achieved, in a way that sustainability of what we have on ground is improved upon and even the quality of the roads that we deliver. I think our partnership with you, Your Excellency, is that the quality of the roads that we see must return back to the days when we constructed a road that 25 years later is still intact.” The meeting was attended by directors of key departments of both the Ministry and the Bureau, including Engr. Bede U. Obioha, Director Highways Bridge and Design, Engr. Musa Saidu, Acting Director Highways Road Design and Engr. Clement Ogbuagu, Director Highways Construction and Rehabilitation Federal Ministry of Works, as well as Nasir M. Bellow, Isaiah G. Yesufu, Janet McDickson, Directors of the Bureau of Public Procurement.   ...

Dec
06
2024

SENATE COMMENDS POLICY DIRECTION AND INNOVATIONS OF THE RENEWED HOPE ADMINISTRATION IN WORKS SECTOR, BACKS ACTIONS TO HOLD CONTRACTORS ACCOUNTABLE. -AS JULIUS BERGER RISKS WARRANT OF ARREST FOR DISREGARDING LEGISLATURE’S INVITATION In an investigative hearing of the Senate Committee on Works on contractors’ slow pace of work on the Odukpani-Aba-Odukpani-Ikot Ekpene and other sections ending at Benin, including the Odukpani-Itu Highway, the Eket Bypass, Port Harcourt - Ahoada, Ahoada - Kaiama, and Port Harcourt - Onne Junction Sections of the East-West Road, carried out by the Senate Committee on Works held at the Senate building, National Assembly Complex on 5th December 2024, the Chairman of the Senate Committee on Works, Distinguished Senator, Barinada Mpigi has commended the bold steps of the President of the Federal Republic of Nigeria, His Excellency President Asiwaju Bola Ahmed Tinubu, GCFR in tackling the challenges that inhibit road infrastructure development in Nigeria. In the meeting which had in attendance, the members of the Committee, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON, with his management team and concerned contractors including, CCECC, RCC, SAMATECH, GITTO and SETRACO, the Senate Committee Chairman stated that the Senate is prepared to fully back actions that hold contractors accountable and put an end to practices that delay the impact of this administration’s infrastructure delivery goals. He maintained that Nigerians deserve nothing short of the best in our road infrastructure deliverables and urged stakeholders to uphold their responsibilities in this regard. He commended the Federal Ministry of Works for the technical innovations they have brought to the construction industry and warned that it was no longer business as usual for contractors to collect tax payers’ money and would delay in completing the projects they contracted to do or do a substandard job. He said, “In addition to his technical innovations, Senator Umahi has demonstrated remarkable decisiveness in identifying and addressing non-performing contracts. His actions in revoking underperforming agreements and ensuring that public funds are redirected to more capable contractors reflect a deep commitment to the Renewed Hope Agenda of this administration. This agenda prioritizes infrastructure as the backbone of economic revitalization, and we, in the Senate, will support every step taken to ensure its success.” He decried the hardship contractors’ behaviour has caused road users. “This deplorable condition has resulted in devastating consequences. Precious lives have been lost, not just on the highway but also among those forced to seek alternative routes through treacherous river crossings. The tragic accident near the Mini Itu bridgehead in Odukpani Local Government Area, which claimed five lives, is a stark reminder of the urgency of this issue.” He warned that the era of such behaviours of contractors had gone. “Contractors, including RCC, have received substantial funds, including the N15 billion that was injected into this project, yet delivery remains elusive. The other stretch of the East-West Road has contractors like RCC, Setraco, and Gitto who have been paid billions, yet the pace of work is far from acceptable. Speaking during the event, the Honourable Minister of Works thanked the Senate leadership, Senate Committee on Works and indeed the 10th NASS for placing a watch on the contractors to ensure value for money, speedy and quality delivery of all the road projects of this administration. He commended the President of Nigeria very highly for giving priority attention to the completion of the inherited ongoing projects and for the vision that informed the initiative to construct the four Legacy projects cutting across the 6 Geo-Political Zones. He noted the impediments to the execution of the ongoing projects but assured that Mr. President was tackling the situation. He said, “It's very rare for a President to come on board, and he decided to ignore new projects and decided to take on all the inherited projects and do them at the same time. It's very rare.” On funding, he said, “And we have a country where we want to make an omelet, but we don't want to strike an egg. The projects of roads can    not and will never be executed to the satisfaction of the public by using budgetary allocations. There must be different kinds of funding. These different kinds of funding must have to come from either bond or loan to do the job. But the public is saying, no, the President is taking a loan. But, the President is taking a loan to invest in infrastructure development. And that's what every developed country follows.  He spoke of the efforts made by the Ministry on the Odukpani-Aba-Odukpani-Ikot Ekpene road, “And so we modified it and then put more stronger sub base and then we increased the thickness of the asphalt pavement so that we can finish the existing pavement as quickly as possible. But the new carriageway, if we have money, will be done on the rigid pavement. This is the reason. And so we have to agree with them. They have to make a promise before the Senate that they will mobilize on three sections doing exactly the same work. Meanwhile, the Senate Committee on Works has given Julius Berger Plc ultimatum to appear before it on 6th December 2024. In a motion moved and adopted during the investigative hearing, the Senate resolved that it would have no option than to issue a warrant of arrest on Julius Berger Plc should it fail to appear before it as scheduled. Moving the motion, a member of the Committee, Sen. Asuquo Ekpenyong said, "Messrs. Julius Berger Nigeria Limited is not here. Now, my understanding is that Messrs. Julius Berger Nigeria Plc bidded, was selected, and awarded this job. Funds from taxpayers across this country were disbursed to them. Our understanding is that they showed up on site for a brief period and have since abandoned the site. It is our collective resolve as a committee that under the new Minister's rule, Julius Berger should be produced to this committee in 24 hours by 2 p.m, the 6th of December, 2024, a failure of which will lead to our invoking our constitutional powers and issuing a warrant of arrest on messrs. Julius Berger Nigeria Plc”    ...

First First

PUBLIC ANNOUNCEMENT


Jul
16
2024

 


OTHER NEWS

Jul
26
2024

SEN. UMAHI MOURNS THE DEATH OF CHIEF ENGR. DR. EMMANUEL CHUKWUEMEKA IWUANYANWU. (AHAEJIAGAMBA NDIGBO)

I received, with a deep sense of loss, the sad news of the death of the President - General of Ohanaeze Ndigbo, Chief Engr. Dr. Emmanuel Chukwuemeka Iwuanyanwu CFR, OFR, MFR, GCSI, FNSE, FNIST, FNICE, KSC, (Ahaejiagamba Ndigbo) who was called to eternal glory on 25th July, 2024 at the age of 82 years.

Late Chief Iwuanyanwu was an experienced and well-respected national figure with unwavering political, professional, and business track records. He will be remembered for his commitment to nation- building; he canvassed unequivocally for equity, equality, value re-orientation, and unconstrained national development. He made perceptive contributions to issues that promote national dialogue during his time as President - General of Ohanaeze Ndigbo. Indeed, we have lost a rare gem. May his soul rest in peace, amen.

I offer my deepest condolences to the family, the government of Imo state, the Igbo communities worldwide, and indeed Nigeria for the loss of this great statesman.

H.E Sen. Engr. Nweze David Umahi, CON
Honourable Minister of Works

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

Nov
13
2024

THE HONOURABLE MINISTER OF WORKS AND THE EXECUTIVE GOVERNOR OF NIGER STATE, H.E. MOHAMMED UMARU BAGO AT THE TOWN HALL MEETING AND STAKEHOLDERS ENGAGEMENT ON THE CONSTRUCTION OF THE 127-KILOMETRE, 3-LANE, SINGLE CARRIAGEWAY (NIGER STATE COMPONENT) OF THE 1,068-KILOMETRE SOKOTO - BADAGRY SUPERHIGHWAY IN MINNA, WEDNESDAY, 13TH NOVEMBER, 2024

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PHOTO NEWS

Jul
17
2024

PICTURES FROM DAY 2 OF THE 29TH MEETING OF THE NATIONAL COUNCIL ON WORKS

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