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Aug
10
2026

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“THE WORST IS OVER; OUR GDP IS GROWING MORE THAN OUR POPULATION. THAT MEANS WE HAVE A FUTURE” - UMAHI TELLS NANS

— As Nigerian Students Induct Him as Grand Patron, Hail Him as “One of the Finest” in Tinubu’s Renewed Hope Cabinet

The Minister of Works, Senator Engr. David Umahi, CON, has declared that Nigeria is now seeing stronger economic outlook under President Bola Ahmed Tinubu, noting that the country’s Gross Domestic Product (GDP) is now growing faster than its population.

Umahi made the declaration on Monday, August 10, 2026, at the headquarters of the Federal Ministry of Works in Abuja, while speaking after he was formally inducted as Patron of the National Association of Nigerian Students (NANS).

The minister described the development as a positive indication of Nigeria’s economic prospects, saying, “I was enthused to find out that our GDP is growing more than our population. That means we have a future.”

The NANS leadership, led by its President, Dist. Comr. Akinteye Babatunde Afeez, GCNS, had earlier commended Umahi for his contributions to national infrastructure and described him as “a worthy member of the Renewed Hope Cabinet and, indeed, as one of the finest public servants Nigeria has produced in the contemporary era.”

The students said the recognition was not merely ceremonial but a reflection of Umahi’s visible contribution to road infrastructure and national development under President Bola Ahmed Tinubu’s administration.

According to NANS, the roads and bridges being delivered under Umahi’s supervision are directly connected to the lives of Nigerian students, affecting their mobility, access to educational institutions, examinations, internships, businesses and employment opportunities.

The students specifically cited major projects including the Abuja-Kaduna-Kano Expressway, Abuja-Kaduna-Min­na route, Enugu-Port Harcourt Expressway and Lagos-Calabar Coastal Highway as examples of projects they said demonstrate the Federal Government’s commitment to improving national connectivity.

Afeez also disclosed that NANS had studied project reports of the Federal Ministry of Works covering the period between May 2023 and May 2026 and expressed its intention to embark on nationwide project tours to inspect completed and rehabilitated projects.

He said the students would use their platforms to communicate the impact of the projects to millions of Nigerian students, Nigerians and the wider world.

Responding, Umahi challenged Nigerian students and young people to look beyond political sentiments and examine the policies and achievements of the Tinubu administration objectively.

“We have had somebody say, ‘President Tinubu is tired.’ How do you know he is tired? I am part of President Tinubu. The Minister of Interior, the FCT, all the ministers and all the SSAs are vibrant and working. So how do you just jump at that conclusion?”

The minister urged Nigerians to demand concrete alternatives from those criticising the administration.

“If you say that the President is not doing well, what is your alternative?” he asked, stressing that political promises must be backed by clear plans and a credible mission.

He also called on students and other young Nigerians to take a position on issues affecting the country, arguing that remaining neutral in the face of visible progress was not always the right approach.

“You may say that you are not politicians or that you will not take sides, but this is the time to take sides in our national affairs. It is time to take a stand,” Umahi said.

On the economy, the minister acknowledged that the macroeconomy was only beginning to recover but urged Nigerians to consider the condition of the economy before the present administration took office and assess the reforms objectively.

“You may say that the macroeconomy is just beginning to recover. What was it like before the President took over? Everybody agrees that the macroeconomy is being fixed. It is up to you to dissect the ongoing reforms and take a position.”

Umahi also pointed to developments in the education sector, saying the stability being witnessed under the Tinubu administration had created an environment in which students were able to continue their studies without the disruption of nationwide strikes.

“For the first time, students never went on strike. Never. Look at the stability of Nigeria. That has never happened throughout the history of this country.”

“Where is the subsidy money?” Umahi explains

Addressing questions surrounding the removal of fuel subsidy and where the resulting resources were being deployed, Umahi pointed to the scale of ongoing infrastructure projects across the country.

He cited the Abuja-Kaduna-Zaria-Kano road, which he said covers 375 kilometres and, when measured as a dual carriageway, amounts to 750 kilometres.

According to the minister, more than ₦200 billion has already been spent on the project, with 480 kilometres of the dual carriageway completed and further sections nearing completion.

“For the first time, we have been able to complete 118 kilometres of concrete pavement within 30 months. That has never happened,” he said.

The Minister said the remaining works were expected to be completed by November, noting that the two projects on the route have a combined cost of ₦752 billion, with more than 80 percent already paid.

He also highlighted the Sokoto-Zamfara-Zaria corridor, the Benue-Ninth Mile road, and the Bodo - Bonny Island road as examples of projects receiving significant attention under the Tinubu administration.

On the Bonny Island project, he said:

“For the first time, people will move from the island to the mainland in Bonny Island, where the LNG is produced. A project costing ₦280 billion under President Bola Ahmed Tinubu has been completed. The 39.7-kilometre road is fully done, and the people of Bonny are very happy. They are no longer dying at sea. They are now driving through the land.”

The minister also spoke extensively about the administration’s legacy road projects, including the Lagos-Calabar Coastal Highway and the expanded Northeast Fourth Legacy Project.

He disclosed that the Northeast project, originally running from Akwanga through Jos, Bauchi, Gombe and Biu, had been extended through Yobe to Maiduguri, adding another 400 kilometres to the project.

Umahi defended the Lagos-Calabar Coastal Highway against criticisms, saying the project was strategically important to the Niger Delta and would be completed.

“I do not know why people are attacking the Lagos-Calabar Coastal Highway. After all, this is coming from the Niger Delta, where the oil is coming from. Why is nobody attacking the other three Legacy Projects, but this one is being attacked? That is unfair and unrealistic. That project will be completed. In fact, over 50 percent of the entire stretch is already under construction.”

The minister also used the occasion to speak about the development of the Southeast, saying President Tinubu had deliberately embarked on projects aimed at integrating the region into the national infrastructure network.

“The Southeast, for the first time, is being remembered, and I thank the people in the Southeast because sometimes I say, ‘Listen, our people should not be sentimental.’”

He said the administration’s approach to the region was intentional and urged the people of the Southeast to work with other parts of the country.

“The President has a good intention to integrate the people of the Southeast, and I have to be very honest with you. If I were not a minister from the Southeast, we would not have been able to get the projects we have secured. It is intentional on the part of Mr. President. Go and right the wrongs of the Southeast.”

Umahi cited the Enugu-Onitsha Expressway and Enugu-Port Harcourt Expressway among the major projects transforming connectivity in the region.

He also disclosed that President Tinubu had approved the re-scoping and reconstruction of the Lokoja-Benin-Warri corridor, covering a total of 401 kilometres.

The minister was particularly direct in urging the students to support President Tinubu in the 2027 election, arguing that Nigerians should support the administration if they believe its policies are producing results.

“I want you to take a side. If you say you are on the list of a coalition and you say that what we are doing is good, then we have to take a stand to vote for the President in the coming election.”
“Let him finish. Let him take back our country. Let him reposition our country.”

Umahi also urged Nigerians to look beyond political rhetoric and focus on practical solutions to the country’s challenges.

“Listening to others should not mean allowing yourselves to be insulted or blackmailed. Cheap talk will not solve our problems. Nobody is saying what he or she can do differently. The worst is over. The darkest part of the night is an hour before dawn.”

He pointed to the decline in food prices as one of the developments Nigerians should consider in assessing the economy, recalling that a 50-kilogramme bag of rice, which he said had risen above ₦80,000 and at some point reached ₦100,000, was now selling at about ₦58,000.

Umahi also stressed the administration’s commitment to transparency in the execution of road projects, saying the Ministry of Works had opened its projects to scrutiny by anti-corruption agencies.

“Now, why are we doing this? Transparency. We have turned these projects over to the ICPC. They have gone round. We are ready for constructive criticism, and where necessary, we will make amends.”

He added that the Ministry had also written to the Economic and Financial Crimes Commission (EFCC) to inspect its projects. “We have nothing to hide in this administration.”

The minister urged NANS to organise a major student engagement across the geopolitical zones where students could ask questions directly and hear the government’s explanations on its policies and projects.

“Let me defend this administration. Organise it and let me come. Move students from across the zone to a central point where we can talk to them and address their concerns. We have to deliberate on the issues. We have to debate them. Ask your questions, and we will answer them.”

He said he would attend such engagements with some ministers and Senior Special Assistants to the President, stressing that students were important stakeholders in the country’s future.

Umahi further challenged young Nigerians to take responsibility for protecting public infrastructure and contributing positively to national development. “See something, say something. Together, we can take back our country because it belongs to us.”

He said the responsibility for the performance of government should be placed on the officials directly responsible for specific sectors, rather than on the President for every operational issue.

“I am here because the President gave me the responsibility to be in charge of roads and bridges. If I do not do it, I should be the one to be blamed, not the President. I am not the President. The President has divided himself into a number of his appointees. These appointees should be the ones to answer and take responsibility.”

The minister concluded by thanking the students for the recognition and expressing his readiness to deepen collaboration with NANS.

“I want to thank you very much.“

He described the students as important partners in the national development process and encouraged them to remain informed, ask questions and hold leaders accountable.

The NANS President, in his address, said the association considered Umahi worthy of its patronage because of his record of public service, infrastructure delivery and commitment to national development.

He said the roads being constructed under Umahi’s leadership would outlive the present administration and continue to serve generations of Nigerians.

“History will not remember public officers merely because they occupied important offices. History will remember them for what they built, what they changed and the lives they touched.”

Afeez formally welcomed Umahi into the NANS family as Patron, describing the partnership between the student body and the Federal Ministry of Works as an opportunity to bring government projects closer to young Nigerians and deepen informed national discourse.


 

Jun
12
2026

WORKS MINISTRY VALIDATES 2026 PERFORMANCE PLAN, UNVEILS REVIEWED STRATEGIC ROADMAP TO DRIVE RENEWED HOPE AGENDA The Federal Ministry of Works has concluded its Sectoral Retreat for the Review and Validation of the 2026 Performance Management System (PMS) Plan and the Unveiling of the Reviewed Strategic Plan (2024–2027), reaffirming its commitment to advancing the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, through enhanced performance management, accountability, and service delivery. Speaking at the 1-Day Retreat, the Honourable Minister of Works, Engr. David Umahi, CON, FNSE, FNATE, represented by the Honourable Minister of State, Bello Muhammad Goronyo, Esq., described the gathering as a strategic platform to evaluate the Ministry’s operational roadmap and align its Ministerial Performance Management System (MPMS) with national development priorities. He noted that the retreat was designed to strengthen institutional planning, accountability, digital transformation, and performance evaluation across the Ministry and its agencies, thereby enhancing the delivery of critical infrastructure projects nationwide. According to the Minister, the Performance Management System (PMS) provides a structured framework for communication and coordination within the Federal Civil Service, ensuring that institutional objectives are aligned with the Ministry’s strategic goals, while promoting transparency, efficiency, and improved service delivery. The Minister urged participants to engage actively in the deliberations and contribute practical ideas toward developing an effective operational framework that would accelerate the delivery of the Ministry’s mandates and support the Federal Government’s development agenda. In his remarks, the Permanent Secretary, Mr. Rafiu Adeladan, described the retreat as both timely and essential, stressing that the reviewed strategic plan would further strengthen the Ministry’s capacity to deliver sustainable, durable, and quality roads and bridges across the country. He encouraged participants to take full advantage of the sessions by sharing innovative ideas and best practices that would guarantee institutional effectiveness and improved public service delivery. “There is no doubt that this retreat will further strengthen performance, accountability, and operational efficiency within the Ministry,” he declared. The retreat featured technical presentations, including an overview of the reviewed Federal Ministry of Works’ Strategic Plan (2024–2027) delivered by Dr. Francisca Odeka of FRANDEK International Consulting Ltd., as well as a paper on the benefits and challenges of implementing the MPMS in the Federal Civil Service, presented by Mr. Rikko Uwutti. A major highlight of the retreat was the validation and formal signing of the weighted Ministry’s MPMS Template by the Permanent Secretary and Directors, signifying the Ministry’s collective commitment to achieving its 2026 performance targets. The Director of Planning, Research and Statistics (DPRS), Mrs. Emily Osunde, announced that the cascading of the MPMS to the Employee Performance Management System (EPMS) for officers on other grade levels, alongside the preparation of implementation reports, would commence on Monday, 15 June, 2026. Delivering the Vote of Thanks, the Director of Human Resource Management (DHRM), Mal. Ahmed Muhammad Tukur assured participants that all resolutions and recommendations arising from the retreat would receive the necessary attention and follow-through. He expressed appreciation to the Honourable Ministers, the Permanent Secretary, Directors, Resource Persons, and all the other stakeholders for their invaluable contributions to the success of the programme. The Retreat further underscored the Ministry’s determination to institutionalise a result-driven performance culture and strengthen its capacity to deliver impactful infrastructure projects in support of national development. ...

Jun
10
2026

UMAHI ISSUES STRONG WARNING TO NON-PERFORMING CONTRACTORS, SAYS TINUBU MUST NOT BE BLAMED FOR PROJECT DELAYS The Honourable Minister of Works, Sen. Engr. David Umahi, CON, FNSE, FNATE, has issued a strong warning to contractors handling Federal Government road projects, urging them to fulfil their contractual obligations and eliminate the factors that give rise to unwarranted criticism of the administration of President Bola Ahmed Tinubu, GCFR. Speaking during an extensive inspection tour of ongoing road and bridge projects in Kogi and Edo States, the Minister expressed dissatisfaction with the pace of work on some sections of the Abuja-Lokoja Dual Carriageway and the Dualisation of Obajana Junction -Benin Road. He disclosed that, due to funding constraints, the scope of one of the Sections of the Abuja-Lokoja road had to be reduced from 49.28 kilometres to 28 kilometres to concentrate available resources on the most critical portions. "I am very sad with what I saw on the ground. What was reported to us is not reflected in the actual work being done," the Minister observed. Engr. Umahi reiterated the Ministry's directive that no section of the Federal highway should remain closed for more than 14 days during construction. He subsequently issued an ultimatum to the affected contractor to complete the required section within the stipulated period or risk termination of the contract. The Minister, however, commended Messrs JRB Construction Company for the quality and pace of work on its project, describing the company as a model of professionalism and commitment. According to him, "If everybody does his job accordingly, there will be no reason to shift the blame to Mr. President." He also issued a 72-hour ultimatum to GELD Construction Company, handling one of the sections, to effectively utilise funds already released to demonstrate visible progress on the project. According to the Minister, a substantial percentage of Nigeria's Federal road network had deteriorated before the advent of the present administration, stressing that President Tinubu inherited enormous infrastructure challenges but has continued to make significant strides to restore and modernise the nation's road sector. He further directed the Federal Controllers of Works (FCW), Engineers’ Representatives (E.R.), and project supervisors to strengthen monitoring mechanisms and enforce greater accountability, insisting that all procurement processes and expenditures must be properly justified. As part of the inspection tour, the Minister visited the reconstruction of the existing pavement and completion of the additional carriageway on Section III of the Abuja–Lokoja Dual Carriageway, including works being executed by Trucrete Solutions Limited on the Koton Karfe–Abuja alignment. He also inspected two critical bridge projects along the same corridor, as well as the ongoing dualisation of the Lokoja–Benin Road. The projects inspected include Section I, Obajana Junction–Okene, and Section II  covering the Okene–Auchi corridor across Kogi and Edo States. The Minister further assessed progress on the flyover and interchange components of the project being executed by CCG Contractors, with the flyovers at approximately 80 percent completion and the interchange at about 30 percent. The Chairman of the Senate Committee on Works, Senator Allwell Heacho Onyesoh, commended Engr. Umahi for his visionary leadership and firm commitment to ensuring value for public funds. He noted that political office holders can no longer continue to bear responsibility for the poor performance of contractors, stressing that Nigerians expect tangible results and timely project delivery. Senator Onyesoh also appealed to the Nigerian National Petroleum Company Limited (NNPCL) and the Federal Ministry of Finance to ensure the timely release of funds for ongoing projects. He added that the Committee would reserve its final assessment pending the level of commitment and progress demonstrated by the contractors. Similarly, the Chairman of the House of Representatives Committee on Works, Hon. Akin Alabi, called on all stakeholders to support the Ministry in delivering a quality road network across the country. He emphasised that road development is a collective responsibility and observed that President Tinubu has entrusted the Ministry with the critical task of ensuring efficient project execution. Addressing contractors, Hon. Alabi assured them that the Federal Government remains committed to meeting all legitimate payment obligations, while commending JRB Construction Company for its significant investment and commitment to Nigeria's infrastructure development. The Managing Director of GELD Construction Company, Mr. Fadi Azimi, assured the delegation that the company would intensify work and ensure improved project delivery, in line with the Ministry's expectations. The Ministry reaffirmed its determination to address the challenge of non-performing contractors and reiterated its commitment to strengthening supervision, accountability, and the timely delivery of quality road and bridge infrastructure across the country.   ...

Jun
08
2026

TINUBU’S FOUR LEGACY PROJECTS WILL LINK ALL SIX GEOPOLITICAL ZONES SAYS UMAHI AS ECOWAS BANK MOVES TO APPROVE FUND FOR CALABAR-ABUJA SUPER HIGHWAY The Honourable Minister of Works, Senator Engr. David Umahi, CON, has described President Bola Ahmed Tinubu's four legacy road projects as a transformative national infrastructure network that will connect all six geopolitical zones of Nigeria, unlock economic opportunities, boost food security, and accelerate regional integration. Umahi stated this on Monday, June 8, 2026, while receiving a delegation from the ECOWAS Bank for Investment and Development (EBID), led by Maimouna Sidibe, Head of the Basic Infrastructure Division, Department of Public Sector Corporations, at his office in Abuja. The EBID team is currently undertaking appraisal activities ahead of the approval of financing for Section One of the Trans-Sahara Super Highway, one of President Tinubu's landmark legacy projects. Welcoming the delegation, the Minister explained that the President's four legacy road projects were deliberately designed to function as an interconnected national transport network. "Let me say that the entire four Legacy Projects of Mr. President are interconnected in a loop," Umahi said. He explained that the 750-kilometre Lagos-Calabar Coastal Highway seamlessly links with the Trans-Sahara Super Highway through Ndibe Beach in Cross River State.  According to him, Section One of the Trans-Sahara Super Highway spans 123.64 kilometres and runs from Ndibe Beach to the Benue border, while additional sections through Benue, Kogi and Nasarawa States have already been awarded. The Minister noted that the historic route has existed since colonial times, serving as a major corridor for trade and agricultural activities. "It has long existed and remains a major food corridor. It is critical to food sufficiency in our country," he stated. Highlighting the economic significance of the project, Umahi said the highway would connect major agricultural belts across the country, including Ebonyi, Benue and Cross River States, while significantly reducing travel time between Calabar and Abuja. "This route will shorten travel time from Calabar to Abuja to about four hours. It is therefore a very important corridor," he said. Beyond transportation, the Minister revealed plans to harness existing dams along the corridor for irrigation and renewable energy generation, creating new opportunities for industrialization, investment and job creation. "There are many benefits to this project. Beyond tolling and corridor development for investment returns, it will generate numerous jobs, both direct and indirect. There will be factories along the corridor, power projects, and significant traffic volumes on the road," he added. Umahi further explained how the Trans-Sahara Super Highway connects to the fourth Legacy Project through the Abuja-Akwanga Road corridor, extending through Jos, Bauchi, Gombe, Biu and Maiduguri. He noted that the recently flagged-off Gombe-Biu section covers 125 kilometres and is being constructed as a six-lane highway, while procurement activities are ongoing for the Bauchi-Gombe section. He also outlined plans to link the Lagos-Calabar Coastal Highway to the Sokoto-Badagry Super Highway through a new route beginning at Victoria Island, traversing a 3.5-kilometre tunnel, Ogogoro Island and Snake Island before connecting to Badagry. "When you look at all of this on a map, you see a loop. All the geopolitical zones are included," Umahi said. "If you start from Sokoto, you can access all six geopolitical zones within two days. It is a remarkable development." Commending the contractor handling Section One of the Trans-Sahara Super Highway, Infioues, the Minister disclosed that work has already exceeded 20 percent completion. "My concern is that we need to fast-track the loan component because once they reach 30 percent completion, payments will become necessary," he said. He described the visit of the EBID delegation as timely and praised the bank for its commitment to supporting the strategic project. "That is why your visit is very timely, and we commend you highly. I also appreciate the meeting we had earlier. It was very fruitful, and I believe we are aligned in terms of enthusiasm and speed of execution." Earlier, leader of the EBID mission, Maimouna Sidibe, reaffirmed the bank's commitment to supporting the project, describing it as a priority infrastructure investment. "We are very honored to contribute to the financing of this very important project, which have been submitted last week to our first credit committee." Sidibe disclosed that the project had already received positive consideration from the bank's first credit committee and had advanced to the appraisal stage. "The members find this project very important and encourage the department to come to finalize the instruction of the projects." She explained that the delegation's visit included consultations with key government agencies as well as site inspections to assess project implementation, environmental compliance and social safeguards. According to her, the project is expected to proceed to the bank's second credit committee next week before being presented to the Board of Executive Directors in early July for final approval. Sidibe commended the Federal Government's commitment to the project, noting that counterpart funding obligations had already been substantially fulfilled. "I have to say that the project is of a very top priority for the administration, and that's why the administration have paid 30 percent of the counterpart money." She also praised the quality of work already delivered on the project and expressed confidence in the durability of the road infrastructure. "The members of the credit committees said that this technology is very, very good and already experienced on Lagos-Calabar, and the road duration will be at least for 50 years." The delegation included Mathieu Anno, Head of the Environment and Sustainability Unit at EBID; Onimisi Aliyu, Financial Analyst at EBID; Blaghe Dougah, Head of ESG Department at Sky Capital Europe; and Sheka Humphrey of Influence International, the project contractor.   ...

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PUBLIC ANNOUNCEMENT


Nov
03
2025

  


OTHER NEWS

Dec
16
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
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

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