Federal Ministry of Works

Sep

2026

LATEST PRESS

FG EMBARKS ON DECISIVE EMERGENCY INTERVENTION ON BENIN-ASABA EXPRESSWAY

The Honourable Minister of Works, Engr. David Nweze Umahi, CON, FNSE, FNATE, has kick-started the Federal Government’s emergency intervention on the Benin–Asaba Highway under the Ministry’s “Operation Rescue” initiative, aimed at restoring safe, smooth, and uninterrupted movement along the critical corridor. The intervention, to be carried out by the Ministry, through the hiring of equipment and direct implementation, is a demonstration of its determination to address the severe deterioration of sections of the road and bring immediate relief to motorists, commuters, businesses, and the affected communities. He made this known during the inauguration of *"Operation Rescue Benin -Asaba Expressway”* at Benin City, Edo State on Thursday, 24 September, 2026. The Benin–Asaba Highway is a strategic Federal Highway that commences at AIF Roundabout in Benin City, Edo State, and terminates at Summit Junction in Asaba, Delta State, with a distance of 125km. It was concessioned to the Benin-Asaba Expressway Concession Company (BAECC) by the immediate past administration but the handing over of the site was performed by the present one in March, 2025. However, it has since been proven that the Concessionaire lacks the technical and financial capabilities to execute the project. This was established by the *Independent Engineer (I.E.)* for the project, *Messrs Yolas Consultants Limited*.* Considering the plight of road users and the continued deterioration of the concessioned road, the I.E. advised the Ministry to urgently take all necessary steps to save it from further deterioration, avert further gridlock, assuage the suffering of motorists, as well as save the Federal Government from embarrassment.

Engr. Umahi has personally been monitoring the implementation of the concession project, through several site visits and issued instructions via the I.E. for the *Concessionaire* to stick to the Ministry’s standards and methodology, which were not complied with leading to the worsening of the road condition. Hence, the Ministry’s intervention to save the critically failed sections of the Expressway, through the deployment of equipment and personnel.

The Federal Ministry of Works, according to the Minister, is poised to alleviate the hardship being experienced by road users and communities on the corridor, alike. He reiterated that the Federal Government would not allow the condition of a major national artery to continue to undermine economic activities, the movement of people, goods, and services, as well as the safety of road users and the host communities. He stressed that the emergency intervention is focused on achieving immediate traffic relief, while providing a sustainable engineering solution to the identified problem spots.

According to him, the intervention is also being driven by the overriding need to protect public interest and ensure that Nigerians using the road are not left to bear the consequences of the deteriorating infrastructure occasioned by the lapses of the *Concessionaire.* The Minister emphasised that *” this is not a new contract but an immediate solution to the plight of road users.”* He reaffirmed the commitment of President Bola Ahmed Tinubu’s administration to restoring critical road infrastructure across the country and ensuring that emergencies receive prompt and decisive attention.

*“Operation Rescue”* is about immediate action, restoration of movement, and protection of the travelling public and communities along the corridor. *“We are determined to address the failed sections and, thereafter, provide a durable solution that will serve Nigerians for many years,”* the Minister asserted.

Engr. Umahi called on road users and people along the corridor to cooperate with the Ministry’s officials and traffic-management personnel, as emergency works commence, assuring them that the Ministry would continue to monitor progress and take all necessary measures to minimise hardship during the period of the intervention. “*I am pleading with motorists to exercise patience, observe traffic-management directives and drive cautiously around active construction zones,* he stated.

Engr. Umahi highly commended President Tinubu's concern over the well-being of citizens, reiterating that *”the Ministry remains committed to restoring the Benin–Asaba Expressway to a safe, functional and durable condition in the overall interest of Nigerians and the national economy."*

Before this, the Governor of Edo State, His Excellency, Senator Monday Okpebholo had demonstrated his commitment to the welfare of his people during the protest in August, 2026 caused by the bad state of the road by immediately identifying with the situation and dispatching his Chief of Staff to appeal for calm and reassure the affected communities and motorists of immediate remedial action. Speaking at the Ceremony, His Excellency appreciated the President of the Federal Republic of Nigeria for his prompt and decisive intervention, as well as the Minister of Works for his continued commitment to the provision of road infrastructure across the country.

The Governor of Delta State, His Excellency, Sheriff Oborevwori, represented by his Deputy, Charles Anaogu, expressed much gratitude for the immediate response in restoring the all-important road. *”It is a well-desired action to better the lives of the people of Delta State and the general public,* he added.

The *representative of the Managing Director of the Niger Delta Development Commission (NDDC),* applauded the President for his commitment to the development of the Niger Delta region. He also commended the Honourable Minister for his steadfastness to the welfare of the people of the zone and Nigerians, at large.

Delivering the Welcome Address earlier, the Special Adviser to the Edo State Governor on Project Implementation and Monitoring, Engr. Phoebe William Bello, described the rescue operation as very timely in reinstating the critical transportation corridor connecting communities, facilitating mobility, commerce and trade between Edo and Delta States with the other parts of the country. Therefore,*its importance cannot be overstated,”* she noted.

The occasion was graced by lots of dignitaries and Goodwill Messages were delivered by the Deputy Governors of Edo and Delta States, the Rt. Honourable Speaker of the Edo State House of Assembly, the Youth Leader of Ikpaba Hill Community, and other stakeholders, who unanimously eulogised the Federal Government’s proactive response.

Jul

2026

PRESIDENT TINUBU REITERATES COMMITMENT TO QUALITY INFRASTRUCTURE DELIVERY AT THE 34TH COREN ENGINEERING ASSEMBLY President Bola Ahmed Tinubu, GCFR, has reaffirmed the Federal Government's unwavering commitment to strengthening engineering regulations, promoting quality infrastructure, and safeguarding public safety across Nigeria. Represented by the Honourable Minister of Works, *Engr. David Umahi, CON, FNSE, FNATE *, while declaring open the 34th COREN Engineering Assembly, the President described the Assembly’s theme, *"Advancing Public Safety in Nigeria through Strategic Engineering Regulatory Enforcement and a Tiered Sanctioning Regime,"* as timely and relevant to the nation’s developmental aspirations. The President stated that engineering remains the backbone of national development and that effective regulatory enforcement is essential for protecting lives, ensuring quality infrastructure, and restoring public confidence in the engineering profession. He stressed that regulations are not intended to punish professionals but to protect public interest, noting that *” no road, bridge, or building is more valuable than human life.”* President Tinubu assured participants that his administration remains fully committed to completing the four (4) Legacy Road Projects across the six geopolitical zones, under the Renewed Hope Agenda. He described them as strategic investments that will transform the nation’s economy, improve connectivity, and stimulate sustainable development. The Honourable Minister of Works commended the Council for the Regulation of Engineering in Nigeria (COREN) for choosing an apt theme that aligns with the Federal Government’s vision for quality infrastructure delivery and adherence to public safety. He noted that engineering is a profession where mistakes can cost human lives, emphasising that, unlike many other professions, there is often no opportunity for appeal after a structural failure. He, therefore, called for stronger regulations, strict enforcement, and effective sanctions against unqualified practitioners and professionals, who compromise ethics and standards. Engr. Umahi stressed that site engineers must discharge their responsibilities professionally and should never allow contractors to dictate engineering decisions. He urged Council to strengthen its disciplinary mechanisms, similar to other professional regulatory bodies, to ensure that only qualified engineers are allowed to practice. The Minister highlighted the achievements of President Tinubu’s administration, especially the ongoing Legacy Road Projects spread across all the geopolitical zones, designed to improve economic integration, enhance national security, create employment opportunities, and stimulate investment. He expressed confidence that with continued discipline, transparency, and adherence to engineering ethos, Nigeria’s infrastructure deficit would be significantly reduced within the coming years. Presenting the *Keynote Address* on behalf of the Honourable Minister, the *Permanent Secretary, Federal Ministry of Works, Mr. Rafiu Adeladan,* stated that the Renewed Hope Agenda places infrastructure development at the centre of Nigeria’s economic transformation. He explained that the Ministry is implementing four major Legacy Projects across the geopolitical zones to connect communities, promote commerce, improve national integration, and encourage investment. The Permanent Secretary emphasised that quality assurance, competence, professionalism, and independence amongst stakeholders remain fundamental requirements for sustainable infrastructure development. He urged engineers to uphold ethical standards, comply strictly with engineering regulations and best practices, and strengthen resilience through adherence to due process The Chairman of the occasion, *Alhaji Aliko Dangote, GCON,* represented by *Prof. Hassan Umaru* described the Assembly as timely and significant, noting that engineering excellence remains the foundation of public trust, industrial competitiveness, and national development. He observed that every infrastructure project must be executed according to approved standards and maintained throughout its lifespan. Drawing from the experience of the *Dangote Refinery* project, he explained that rigorous engineering design, quality control, technical discipline, and strict compliance with standards were critical to its successful delivery. The Chairman called for sustained excellence within the engineering profession and urged COREN to continue strengthening regulatory frameworks, while enforcing disciplinary measures against erring practitioners, in order to safeguard lives and property. In his *Welcome Address,* the *President of COREN, Engr. Prof. Sadiq Zubair Abubakar, FNSE,* outlined the Council’s statutory responsibility of regulating engineering education and practice in Nigeria, in line with international standards and recommended practices. He explained that engineering graduates are expected to undergo mandatory industrial training before participating in the National Youth Service Corps (NYSC), describing practical exposure as critical to professional competence. Prof. Abubakar further disclosed that COREN has successfully introduced digital verification and enforcement systems to improve transparency, eliminate fraudulent practices, and strengthen regulatory compliance. He assured members that the Council would continue to uphold integrity, professionalism, and accountability, while addressing attempts by some practitioners to circumvent established standards. According to him, engineering regulation must remain transparent, sustainable, and effective in preventing infrastructure failures across the country. In his introductory remarks, *Prof. O. A. U. Uche* emphasised the importance of sustaining quality infrastructure development through continuous improvement in engineering practice. He described infrastructure development as a collective responsibility requiring collaboration among government, professional bodies, academia, industry, and private sector stakeholders. In this vein, he, therefore, called for stronger synergy in advancing engineering excellence and national development. The *Honourable Minister of Innovation, Science and Technology, Dr. Bosun Tijjani*, stated that science, technology, and engineering remain critical drivers of economic growth, innovation, and public safety. He pledged continued collaboration between the Ministry and engineering regulatory agencies. Representing the Nigeria Governors' Forum, the *Governor of Plateau State, Barr. Caleb Mutfwang,* opined that engineering is one of the most respected professions globally and emphasised the need to create an enabling environment for engineers to thrive, while sustaining public safety and economic development. The *National Chairman of the All Progressives Congress (APC), Professor Nentawe Yilwatda*, commended COREN for its achievements in regulating engineering practice. He described engineers as the backbone of national development and praised the Federal Ministry of Works, under the leadership of Engr. David Umahi for the remarkable progress recorded on the four Legacy Road Projects and others across the six geopolitical zones. He congratulated the Ministry for its commitment to quality infrastructure and affirmed that Nigerian engineers continue to distinguish themselves through professionalism and excellence both nationally and internationally. The 34th Engineering Assembly reaffirms COREN’s commitment to strengthening engineering regulations, enforcement, and a tiered sanctioning regime to ensure public safety and sustainable infrastructure development in Nigeria. ...

Jul

2026

Works Ministry Celebrates A Chequered Career, As Director Ogbuagu Retires The Federal Ministry of Works, on Thursday, honoured the retirement of its Director of Highways, Construction and Rehabilitation, Engr. Clement Azubuike Ogbuagu, in recognition of his exceptional contributions to Nigeria's road sector development and his distinguished service to the Federal Civil Service. The colourful retirement ceremony, attended by the Honourable Minister of State for Works, Bello Muhammad Goronyo, Esq., the Permanent Secretary, Rafiu Adeladan, Directors and other staff, family members, friends, and well-wishers, was marked by glowing tributes celebrating Engr. Ogbuagu. He was described as a visionary leader, accomplished engineer, mentor, peacebuilder, and consummate professional, whose enduring legacy will continue to inspire generations of public servants. Speaking at the event, the Honourable Minister of State congratulated Engr. Ogbuagu, on the successful completion of an illustrious public service career, described his retirement as a celebration of excellence, dedication, integrity, and impactful leadership. He commended the retired Director for his unwavering commitment to national development and his invaluable contributions to the growth of Nigeria's road infrastructure, praying that his retirement would usher in many more years of good health and prosperity. In his remarks, the Permanent Secretary portrayed Engr. Ogbuagu as an exemplary Civil Servant, whose career reflects the highest standards of professionalism, discipline, humility, and integrity. According to him, the retiring Director navigated the challenges of public service with distinction, leaving behind an enviable legacy of excellence and selfless service. Mr. Adeladan urged serving officers to emulate Engr. Ogbuagu's dedication to duty, commitment to excellence, and professional conduct, stressing that true success in the Service lies not only in years of service but in retiring honourably with an unblemished record and lasting impact. Delivering his farewell remarks, Engr. Clement Azubuike Ogbuagu expressed profound gratitude to Almighty God for granting him a successful career spanning more than three decades in the Federal Civil Service. He also appreciated the Federal Government for the privilege of serving the nation and contributing to the development of critical road infrastructure nationwide. Reflecting on his years of service, he noted that working at the Federal level afforded him the unique opportunity to interact with people from every part of Nigeria, an experience he described as invaluable in promoting national unity, understanding, and mutual respect. The retired Director commended the Honourable Minister of Works, Engr. David Nweze Umahi, CON, FNSE, FNATE, for introducing innovative engineering solutions, particularly the adoption of continuously reinforced concrete pavement (CRCP) technology, which he said has significantly enhanced the durability, quality, and sustainability of Federal road projects nationwide. He also appealed to the Federal Government for adequate and timely funding for road projects, describing the sector as a critical catalyst for economic growth, national integration, and sustainable development. Addressing his colleagues, Engr. Ogbuagu encouraged them to remain committed to the ethics, values, and rules and regulations of the Federal Civil Service, urging them to discharge their responsibilities with diligence, honesty, and integrity so that they, too, could retire with honour and pride. He further commended the ongoing implementation of the Federal Civil Service Strategy and Implementation Plan (FCSSIP), particularly its digital transformation initiatives, and called for sustained support to consolidate the reforms and further improve service delivery across government institutions. Earlier, in a goodwill message, the Director of Information and Public Relations, Mal. Mohammed A. Ahmed described Engr. Ogbuagu is one of the Ministry's finest professionals, whose career was defined by competence, integrity, humility, and unwavering dedication to public service. He noted that, beyond his engineering accomplishments, the retiring Director distinguished himself as an exceptional mentor who invested in the growth and development of younger engineers and officers through patient guidance, exemplary leadership, and an untiring commitment to excellence. According to him, Engr. Ogbuagu's remarkable contributions have left an enduring imprint on the Ministry, while his values of discipline, accountability, teamwork, and selfless service will continue to inspire present and future generations of public servants. He thanked the retired Director for his loyal, meritorious, and dedicated service to the Federal Ministry of Works and the Federal Republic of Nigeria, at large, praying that Almighty God would grant him good health, peace, joy, and fulfilment in retirement. The ceremony featured the presentation of gifts, numerous goodwill messages from colleagues and associates, as well as prayers for God's continued guidance and blessings upon Engr. Ogbuagu, as he embarks on a new chapter after an illustrious and impactful career in national service. ...

Jul

2026

UMAHI, EKITI GOVERNOR DISCUSSES STRATEGIC ROAD SECTOR DEVELOPMENT The Honourable Minister of Works, David Nweze Umahi, CON, FNSE, FNATE, has restated the Federal Government's commitment to equitable infrastructure development across Nigeria, adding that the Renewed Hope administration of President Bola Ahmed Tinubu, GCFR, is ensuring that no state is left behind in the delivery of road and bridge projects. He also attributed the overwhelming support for the ruling party to the visible achievements of President Tinubu's administration, particularly in the area of infrastructure development. He noted that the President has demonstrated fairness in the distribution of road projects across the 36 states and the Federal Capital Territory, stressing that communities that had previously gotten little or no Federal Government road intervention are now benefiting. The Minister recalled that during his eight-year tenure as Governor of Ebonyi State, there were no significant federal road projects in the state, adding that similar situations existed in Ekiti and several other states. He commended President Tinubu for changing the narrative through his inclusive approach to nationalist development. Engr. Umahi assured the Governor that all subsisting contracts in Ekiti State would be executed strictly in accordance with engineering principles and measurements, emphasising that contractors were selected transparently, in line with the Public Procurement Act. He further asserted that the Ekiti State Government would be kept fully informed to enable effective monitoring of project implementation. He further reaffirmed the Ministry's commitment to delivering durable and high-quality road infrastructure that will enhance economic activities, improve connectivity, and support the Renewed Hope Agenda of President Tinubu. Speaking earlier, the Governor of Ekiti State expressed profound appreciation to President Tinubu and the Honourable Minister for the numerous road infrastructure interventions in the State. He recalled that following his appeal to the President, through the Honourable Minister, approval was granted for the reconstruction of the Ado–Iyin–Aramoko road, a project that had remained uncompleted for several years despite repeated promises by successive administrations. He noted that contractors were mobilised to the site within weeks of the approval, demonstrating the President's commitment to prompt project execution. Governor Oyebanji also stated that the swift commencement of the project generated widespread appreciation among the people of Ekiti State and strengthened public confidence in the Federal Government's commitment to infrastructure development. He also thanked President Tinubu for approving the construction of the Ado–Ijan–Ikole Road, describing it as another strategic route that will significantly improve transportation and economic activities within the State and beyond. The Governor disclosed that, since the creation of Ekiti State nearly three decades ago, no administration has demonstrated such a remarkable level of commitment to the state's infrastructure development as the current one. According to him, the people of Ekiti now have a renewed sense of belonging as a result of the Federal Government's numerous interventions in roads and other critical sectors. Oyebanji described his visit to the Ministry as one of appreciation, conveying the gratitude of the people of Ekiti State to the President and the Honourable Minister for their dedication to improving the nation's road landscape. The meeting further underscored the strong collaboration between the Federal Government and Ekiti State Government in advancing infrastructure development for the benefit of citizens and national economic growth. ...

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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