Federal Ministry of Works

Jul

2026

LATEST PRESS

FG FLAGS OFF CONSTRUCTION OF AKWANGA–JOS–BAUCHI–GOMBE–BIU—MAIDUGURI SUPERHIGHWAY, COMMISSIONS AKWANGA TOWNSHIP DUAL CARRIAGEWAY AND UNDERPASS

The Federal Government has officially flagged off the construction of Section One of the 700-kilometre Akwanga–Jos–Bauchi–Gombe–Biu—Maiduguri Superhighway, reaffirming President Bola Ahmed Tinubu, GCFR's commitment to delivering transformative infrastructure under the Renewed Hope Agenda.

The flag-off ceremony, held on the 1st July, 2026, in Akwanga, Nasarawa State, where the President, His Excellency Bola Ahmed Tinubu, GCFR, was represented by the National Chairman of the All Progressives Congress (APC), Prof. Nentawe Goshwe Yilwatda, stated that the project is one of the President's four Renewed Hope Legacy Road Projects, designed to transform Nigeria's transportation network, strengthen national integration, improve security, facilitate trade, and stimulate economic growth across the North-Central and North-East geopolitical zones.

The first phase of the project covers approximately 125 kilometres from Akwanga in Nasarawa State to Jos in Plateau State and forms part of the larger 700-kilometre, six-lane, continuously reinforced concrete pavement (CRCP) superhighway stretching through Nasarawa, Kaduna, Plateau, Bauchi, Gombe, Yobe, and Borno States.
The President's representative praised the Minister of Works for his exceptional leadership and dedication to transforming Nigeria's road sector, describing him as one of the administration's most outstanding performers.
He described the Minister of Works as “the shining light of the Renewed Hope Administration.”

Speaking at the ceremony, the Honourable Minister of Works, Engr. Sen. David Umahi, CON, FNSE, FNATE, disclosed that the project is a landmark investment that will improve connectivity, reduce travel time, enhance road safety, lower transportation costs, create jobs, and unlock the region’s economic potential. He explained that the Akwanga–Maiduguri Superhighway is one of four legacy highway corridors being implemented simultaneously by the Federal Government, alongside the Lagos–Calabar Coastal Highway, the Sokoto–Badagry, and the Calabar–Abuja (Trans Sahara) Superhighways.

The Minister reiterated the Federal Government's commitment to CRCP technology to ensure greater durability, lower maintenance costs, and a lifespan of up to 100 years. He commended President Tinubu for his untiring support for infrastructure development and urged the contractor to deliver quality work, while engaging local communities through employment, skills acquisition, and technology transfer.

The President's representative also commissioned the newly completed Akwanga Township Dual Carriageway and Underpass, executed by the Nasarawa State Government under the leadership of the Governor, His Excellency, Engr. Abdullahi Sule, CON. He commended him for complementing the Federal Government's infrastructure drive through strategic investments in road development across the state.

In his Welcome Address, the Honourable Minister of State for Works, Bello Muhammad Goronyo, Esq., stated that the Superhighway would serve as a major transportation corridor linking North-Central and North-East Nigeria, while facilitating trade, agriculture, investment, and national security.

Also speaking at the well-attended event, the Honourable Minister of Information and National Orientation, Alhaji Mohammad Idris, highlighted the Federal Government's unprecedented investment in infrastructure, education, healthcare, and economic reforms, noting that the Renewed Hope Agenda is delivering tangible benefits across all sectors and the country.

The Honourable Minister of Women Affairs, Hon. Imaan Sulaiman Ibrahim, described the project as another demonstration of the administration's commitment to inclusive development, noting that investments in infrastructure are being complemented by programmes supporting businesses, women, and youth development.

Governor Sule expressed appreciation to President Tinubu for approving the project, describing it as a strategic national corridor that will connect communities, boost commerce, and attract investments across the region.

Speaking on behalf of the benefiting states, Governor Barr. Caleb Manasseh Mutfwang of Plateau State said the commencement of the project is the fulfilment of a long-standing aspiration of the people of the region and commended the Federal Government for making its promise a reality.

The Permanent Secretary, Federal Ministry of Works, Mr. Rafiu Olarinre Adeladan, stated that the project represents a new era in highway development in Nigeria and reaffirmed the Ministry's commitment to quality delivery, transparency, and value for money.

The Managing Director of CGC (Nig.) Ltd., Engr. Zhong Xiang assured the Federal Government, the State Governors on the road’s corridor, and all Nigerians of the company's readiness to deliver the project safely, professionally, on schedule, and in accordance with international standards and best practices.

The Federal Ministry of Works reaffirmed its commitment to delivering strategic road infrastructure that will strengthen national unity, promote inclusive economic growth, and improve the quality of life of Nigerians, in line with the Renewed Hope Agenda of the Administration of President Tinubu, GCFR.

Apr

2026

FG REAFFIRMS STRONG COMMITMENT TO KOGI ROADS AS UMAHI, DEEDAT PUSH FOR ACCELERATED INFRASTRUCTURE DELIVERY, SECURITY INTEGRATION ACROSS KEY CORRIDORS A high-level engagement between the Honourable Minister of Works, Sen. Engr. David Umahi, CON, FNSE, FNATE, and the Honourable Commissioner for Works, Kogi State, Hon. Salam Ozige Deedat, have reaffirmed the commitment of both the Federal Government and the Kogi State Government to the sustained development of critical road infrastructure across the state. At the meeting, the Honourable Commissioner expressed appreciation for the ongoing federal interventions on major road corridors, particularly the Abuja–Lokoja–Okene axis and other adjoining routes, noting that successive administrations have contributed to these projects, but observing that recent efforts under the current Renewed Hope Administration have demonstrated greater visibility and impact. He further commended the Minister for his prompt visit to Kogi State upon assumption of office, describing it as a clear demonstration of his connection and commitment to the state despite it not being his place of origin. In addition, he acknowledged the consistent presence of federal teams and contractors on sites, while also pointing out that although progress on key corridors such as the Abuja–Lokoja and Lokoja–Okene are evident, delays in some sections and flyover construction have created traffic challenges that require urgent attention. Moreover, he highlighted other strategic routes, including Okene–Ajaokuta, Takete–Mopa–Isanlu–Egbe towards Kwara State, as well as the Lokoja–Okene corridor, stressing that they all demand accelerated intervention, especially given Kogi State’s strategic proximity to the Federal Capital Territory. In response, the Honourable Minister explained that the major challenge confronting infrastructure delivery nationwide remains funding, even as the Federal Government continues to intensify efforts to address infrastructure deficits across all regions. He emphasised that the current administration is undertaking unprecedented road construction and rehabilitation works, noting that if past administrations had achieved similar levels of development, the present infrastructure pressure across the country would have been significantly reduced. He also reiterated that all parts of the country are demanding attention, adding that ongoing works are being systematically reviewed and restructured to ensure proper delivery and accountability. Specifically addressing the Abuja–Lokoja corridor, the Minister stated that the road, which was previously in a deplorable condition, is now undergoing extensive reconstruction, with several contractors handling different sections. He explained that a 48-kilometre stretch formerly handled by Bulletine Construction is being restructured under concrete pavement due to funding and durability considerations, while an 86-kilometre section previously executed by Gitto has also been re-awarded and reorganised for renewed construction works. Similarly, he disclosed that additional sections, including a 56-kilometre stretch, are being rescoped from asphalt to concrete pavement after contractors voluntarily agreed to adopt a more durable construction method within the available cost framework. Furthermore, he noted that about 50 kilometres remain, which have now been divided between contractors such as JRB and Trucrete to accelerate completion. In the same vein, he explained that other contractors, including CGC, CCECC, BUA, and CBC, are actively working on various segments of the corridor, with several portions already completed or ongoing under concrete pavement technology. He stressed that this transition to concrete construction is deliberate, as it ensures long-term durability and reduces maintenance costs, unlike previous asphalt methods that deteriorate quickly due to water penetration and inadequate shoulder protection. While addressing concerns raised about national security, the Minister acknowledged the strong relationship between infrastructure and security, noting that poor road networks often exacerbate insecurity. Consequently, he revealed that the Ministry is considering integrating solar-powered lighting and CCTV surveillance systems along critical highways such as Abuja–Lokoja Expressway to enhance monitoring, safety, and response capabilities. He further assured that similar interventions will be extended to other strategic corridors to improve security and protect road users. Additionally, he provided updates on several ongoing and planned national projects, including the Trans-Saharan Highway, which forms part of the President’s Legacy Road Infrastructure initiative and passes through Kogi, Benue, and Nasarawa States before terminating at Apo in the FCT. He also referenced the Makurdi–9th Mile corridor, the Kabba–Ado Ekiti road project, and other interventions under the Renewed Hope Infrastructure Programme, noting that several of these projects are captured within the 2024–2026 budget cycle, with funding already allocated but awaiting full mobilisation or contractor deployment in some cases. Moreover, he urged stronger collaboration between the federal and state governments, encouraging sub-national governments to complement federal efforts by undertaking basic interventions such as stone-base construction and maintenance works, where necessary. He also advocated for the adoption of more durable road construction methods, particularly concrete pavement and reinforced mesh technology, which have proven effective in states where they have been implemented. ...

Apr

2026

UMAHI RECEIVES NEW NLNG CEO, ANNOUNCES PRESIDENT’S APPROVAL FOR DUALISATION OF ROAD LINKING BODO-BONNY TO EAST-WEST ROAD The Minister of Works, Senator Engr. David Umahi, CON, has received the new Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas, Adeleye Falade, at the Ministry’s headquarters in Abuja, using the occasion to announce fresh approval for a major road project in Rivers State. The meeting, held on Wednesday, focused on the completed Bodo-Bonny Road and the next phase of development that will link it to the East-West Road, an important route for movement of people and goods in the Niger Delta. Speaking during the visit, the Minister revealed that the President, HE Senator Bola Ahmed Tinubu, CON has approved the dualisation of the 8.9-kilometre road connecting Bodo-Bonny to the East-West Road. The project will be constructed with concrete and will include two flyovers, solar-powered streetlights, and modern monitoring systems. “I have listed that project for the president, he will tell me when he is ready for the commissioning and I will let you know and graciously he has also approved the 8.9km dualized and this time on concrete with two flyovers. We are working with Julius Berger since they are on site, it is more economical for us for them to continue. With the information I’m having from PPP I think the cost is about 150billion because it is a very terrible terrain, two flyovers and solar powered light, tree planting and also some rest house where we will stay and monitor the CCTV.” Umahi explained that part of the funds saved from the Bodo-Bonny Road project has already been redirected to improve the road with solar lights and tree planting. “We made some savings from the Bodo-Bonny and we directed them to use this savings to put solar light and then plant trees within that axis. So, I want to assure you that we work very closely with you and we are not going to be on that project when awarded for more then twelve months and the price will not be reviewed. So make it very clear in our agreement with you and us and them.” The Minister said the Tinubu administration is focused on building durable roads that will last for decades, while also improving safety and boosting economic activities. “I want to commend you very highly and I say that the president infrastructure revolution in Nigeria is quite unprecedented. There is no part of this country that you don’t see solid work going on and we are not talking about just road construction, he is building a road that will last between 50-100years with minimal maintenance and that is what he stands for. For the first time you see road is built, it has solar light. So that people can travel at night and it will increase commercial activity and also safety on the road. He has also directed to start mapping out our to put CCTV on our roads and have viewing points so that response them at every point in time will not be more than 10mins.” Earlier, Abdul Humaru introduced the NLNG team, saying: “We are here to introduce our new managing director and CEO and for a courtesy visit as well.” In his remarks, the NLNG boss, Adeleye Falade, thanked the Federal Government for its support, especially on the Bodo-Bonny Road, which he said is already making life easier for residents and businesses. “Just like Abdul said it is a courtesy visit but it is more than courtesy, we want to take this privilege to express gratitude particularly on Bodo Bonny road. I want to thank you for the support. The road as we have communicated is completed now, we are actually waiting for when you will give us a date for official commissioning but we know people are already using it. The road changed a lot of things about the activities on the Island. I went on the road myself from my office in Port Harcourt. It took me one and a half hours from my office to Bonny that is something that will ordinarily take us four hours.” He also expressed readiness for continued collaboration on the new road project. “We are grateful for the support. We are also grateful for the consideration of that 8.9km that leads into the East west road that enables us to maximize that particular road. We are still waiting for advice, who is going to handle that going forward. We are ready to provide support as well. So, today we have come to show gratitude for the support that we have gotten from you.” ...

Apr

2026

FG ADVANCES INFRASTRUCTURE DRIVE WITH APPROVAL OF NEW PPP ROAD PROJECTS, SOLAR LIGHTING, LANDSCAPING, AND ENHANCED SECURITY FEATURES The Federal Government has reaffirmed its commitment to delivering durable, innovative, and economically impactful infrastructure across Nigeria, following key approvals and policy directions aimed at accelerating national development. This was disclosed during a courtesy visit by the Management of the Nigeria Liquefied Natural Gas (NLNG) Limited to the Honourable Minister of Works on Wednesday. The Honourable Minister of Works, H. E. Sen. (Engr.) David Umahi, CON, FNSE, FNATE disclosed that the President has approved the commencement of an extension of the recently completed Bodo-Bonny Road and Bridges Project in Rivers State to be executed under a Public-Private Partnership (PPP) arrangement, with an estimated cost of about ₦150 billion. The project is expected to incorporate modern engineering solutions, including the use of concrete technology to ensure long-term durability and minimal maintenance over a lifespan of 50 to 100 years. The Minister further revealed that the project has been slated for presentation to the Federal Executive Council (FEC) for formal ratification, underscoring the administration’s commitment to due process and transparency in project execution. As part of efforts to enhance safety, aesthetics, and economic activity along the nation’s road corridors, the government has approved the installation of solar-powered street lighting and the planting of trees. These initiatives are designed to improve night-time visibility, boost security, beautify the corridor, and stimulate commercial activities across the host communities. In addition, plans are underway to deploy a Closed-Circuit Television (CCTV) surveillance system along major highways, complemented by strategically located monitoring centres. This measure is expected to significantly reduce emergency response time to under 10 minutes, thereby strengthening road safety and security management. The project design also includes the construction of rest areas/relief stations and service facilities to support effective monitoring and maintenance operations. Contractors have been directed to utilise savings from project costs to further enhance infrastructure through the provision of solar lighting and tree planting, thereby contributing to environmental sustainability. In a bid to improve logistics and reduce congestion, the government has emphasised the inclusion of truck parking yards at key locations along the project’s corridor. Engagements with host communities are ongoing to secure suitable land for these facilities, ensuring smooth implementation and community participation. The government has also set a strict project delivery timeline of not more than 12 months from the date of award, with firm provisions to prevent cost variations. This is aimed at ensuring efficiency, accountability, and value for money. Commending stakeholders involved in the project, the Honourable Minister noted that the ongoing infrastructure revolution under the current Renewed Hope Administration is unprecedented with a visible impact across all regions of the country. He emphasised that the government is not only focused on constructing roads but on delivering world-class infrastructure that supports economic growth, enhances safety, and improves the quality of life of Nigerians. The Federal Government reiterated its resolve to continue exploring innovative solutions, fostering investment, and ensuring that infrastructure development directly benefits communities nationwide. The Managing Director of NLNG, Engr. Adeleye Falade, in the company of some officials presented a model of a Compressed Natural Gas (CNG) ship to the Minister, symbolising NLNG’s commitment to innovation and the promotion of cleaner energy solutions in Nigeria’s transportation and maritime sectors. The meeting also provided an opportunity for both parties to discuss areas of mutual interest and collaboration in advancing sustainable infrastructure development. ...

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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