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Apr

2025

LATEST PRESS

REVVING UP PROGRESS: HISTORIC FLAG-OFF OF LAGOS–CALABAR COASTAL HIGHWAY IN CROSS RIVER STATE

The Honourable Minister of Works, His Excellency, Senator David Umahi Nweze, CON, FNSE, FNATE, on behalf of the Federal Government has officially launched Sections 3A & 3B of the Lagos–Calabar Coastal Highway in Cross River State on Monday, April 14th, 2025. The event which was held in Calabar, marks the beginning of a monumental infrastructure project aimed at connecting eight coastal states across Nigeria.

In his speech, the Honourable Minister highlighted the project's groundbreaking nature, describing the Lagos–Calabar Coastal Highway as not just another road but a symbol of progress for Nigeria.

Engr. Dr. Umahi reaffirmed the federal government’s commitment to completing the highway on schedule, with the project set to boost trade, tourism, and economic growth in the affected regions. He also reiterated President Bola Ahmed Tinubu's dedication to fulfilling his promises on infrastructure development.

Senator Umahi praised Hitech Construction Ltd. for their outstanding work and for their partnership in delivering this significant project that will benefit not only Calabar but the entire nation.

Governor Prince Bassey Otu, representing President Bola Tinubu, GCFR, spoke passionately about the historical importance of the project. He expressed deep gratitude to the federal government for initiating such a transformative project in an area long deprived of modern infrastructure. Governor Otu emphasized that the completion of the road would improve connectivity and open up significant economic opportunities for Cross River State, fostering long-term growth and development.

Bello M. Goronyo, Esq. Honourable Minister of State for Works, who was also in attendance, spoke about the fulfillment of promises made during President Tinubu’s campaign, noting the critical infrastructure needs of underserved regions. He expressed gratitude for the continued support from local communities and emphasized the collaborative efforts between the federal and state governments in achieving national progress.

Mr. Danny Aboud of Hitech Construction Ltd., the project contractor, assured attendees of the company’s commitment to delivering a high-quality road. He discussed the use of innovative concrete pavement technology that will ensure the durability and longevity of the highway. Aboud also emphasized the significance of engaging local Labour and businesses, contributing to regional socio-economic development and job creation.

In his goodwill message, Engr. Pius Edet Ankpo, Commissioner for Works and Infrastructure in Cross River State, expressed sincere gratitude to the Federal Government for initiating the project. He praised President Bola Tinubu’s visionary leadership and acknowledged the historic nature of constructing a road through forested terrain. Ankpo also advocated for the reinitiation of other key federal road projects in the state, such as the Ikom–Odukpani Junction and Calabar–Itu road, which have faced delays. He urged the Federal Government to prioritize these projects to ensure ongoing development in Cross River State.

Mr. Asuquo Ukpanyang, the Youth Liaison Officer for the state, conveyed the excitement and anticipation of local communities regarding the project. He emphasized that it would not only create jobs but also drive economic participation, improving residents' standards of living. Ukpanyang stressed the importance of involving local populations to ensure the project’s success.

Prominent figures such as Prof. Eyo Etim Nyong, an Elder Statesman, and Senator Eteng Williams, representing Cross River Central, also delivered powerful goodwill messages. Both leaders expressed profound gratitude to the Federal Government and shared how the hopes of Cross Riverians are being renewed through this project. They pledged strong support for the initiative, recognizing its transformative potential for the region. Prof. Nyong commended the Federal Government’s commitment to lasting development in the South-South, while Senator Williams highlighted the project’s role in unlocking new trade and economic opportunities for Cross River State and neighboring regions.

Additional goodwill messages were delivered by Former Senator Ita Giwa and Hon. Gift Johnbull, SSA to the President on Committee Engagement. Senator Giwa praised the federal government for spearheading the Lagos–Calabar Coastal Highway, noting its potential to create new economic opportunities. Hon. Johnbull echoed these sentiments, emphasizing the broader importance of the project in line with President Tinubu’s ongoing commitment to nationwide infrastructure development.

Engr. Olufunsho Adebiyi, Permanent Secretary of the Ministry of Works, also addressed the audience. He expressed full confidence in the project’s success and reaffirmed the federal government’s commitment to ensuring the Lagos–Calabar Coastal Highway is completed to the highest standards, benefiting not only Cross River State but the entire nation. His remarks reinforced the Ministry of Works’ dedication to providing the necessary oversight and support for the project’s successful execution.

The launch of Sections 3A & 3B of the Lagos–Calabar Coastal Highway signals a transformative infrastructure project that will greatly enhance the lives of Nigerians, particularly in the South-South region. With the combined efforts of the Federal Government, state authorities, contractors, and local communities, the successful completion of this critical initiative is assured. The project is set to be a key driver of Nigeria’s long-term economic growth, marking a significant milestone in the nation’s infrastructure development.

Feb

2025

FEDERAL MINISTRY OF WORKS/ MTN MEETS ON QUALITY AND SPEEDY DELIVERY OF ENUGU - ONITSHA EXPRESSWAY PROJECT FUNDED BY MTN UNDER TAX CREDIT SCHEME,FIXES COMPLETION DEADLINE FOR 10TH MAY 2026 AS HONOURABLE MINISTER OF WORKS CALLS FOR IMMEDIATE REDUCTION OF COST OF CEMENT TO N7,000 BY MANUFACTURERS GIVEN THE INCREASED ECONOMIC REBOUND THROUGH MR. PRESIDENT’S SUSTAINED REFORMS The meeting of the Federal Ministry of Works with MTN and RCC Company Nig. Ltd over the slow funding and execution of the Enugu-Onitsha Expressway by MTN under the Infrastructure Development and Refurbishment Investment (Tax Credit) Scheme, held at the Ministry's headquarters, Mabushi-Abuja on 26th February 2025 has ended with the following resolutions: A - The construction of Enugu-Onitsha dual-carriageway must be completed by 10th May 2026. B - MTN shall be held responsible should the road fail after construction on account of shady job by the contractor. C - There will be no variation or VOP on the project and RCC must note that going forward, the operation of VOP in their projects must be in accordance with the procedure contained in the Conditions of Contract and not at the whims and caprices of the contractor. D - MTN not to sacrifice their responsibility of funding the project at the altar of MTN's business profit as this will wittingly or unwittingly inhibit speedy delivery of the project and inpune on the public perception of the will of government to ensure logical completion of the project. E - There must be a commitment in writing between MTN and the Federal Ministry of Works that this offer is predicated on these conditions herein set out. There must be a commitment because the more the job delays, the more there is variation. Speaking during the meeting, which had in attendance, the Honourable Minister of State for Works, Rt. Hon. Mohammad Bello Goronyo Esq, the Permanent Secretary of the Federal Ministry of Works, Engr. O.O Adebiyi, the representatives of MTN, the Managing Director of RCC Company Nig Ltd and his team, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON reiterated that the Federal Ministry of Works is unwavering in its commitment towards ensuring that the contractor handling the project, and in this case MTN that is handling the project under the Tax Credit Scheme is made to ensure quality and speedy delivery of the project. He wondered why an official of MTN could go on his way to insinuate that the directive made by the Federal Ministry of Works that RCC Ltd should stop using materials that could derail the quality outcome of the job amounted to a sabotage of the projects of Mr. President in South East. He said,: "We have to put the records straight that this ministry has the responsibility to ensure quality delivery of work by contractors. And the contractor in this case is MTN". He recounted the various inspection visits he made to contractors' project sites and how this had caused them to brace up for ensuring quality and speed in project delivery. He said of MTN's Enugu-Onitsha Expressway project, "We went through what MTN was doing. We discovered that they were using peeled sand to do the job. I'm an engineer. I'm not a history graduate. I'm a fellow of the Nigerian Society of Engineers, and I've spent all my life in the field. And we gave a directive, which is in line with the general conditions of contract, that should stop using such sand but go back, and use river sand, which we paid for." The Honourable Minister emphasized the need for RCC Nig Ltd to play by the rule in project variation. He decried as unacceptable a situation where RCC could do a job of N38 billion and demand for a VOP N14 billion and said that going forward such indulgence by contractors in the name of inflation would not be tolerated. He used the medium to call on the manufacturers of cement, which is a key element in the construction industry, especially on the use of Continuously Reinforced Concrete Pavement, to please reduce the cost of cement to N7,000 as the price of dollar has drastically reduced, the cost of petrol is coming down and efforts are being made by Mr. President to fix the road. He said, "I'm happy that the policies of Mr. President, are working. Today, a dollar is about N1,400. And let me use the opportunity to express dissatisfaction with the cost of cement. Our contractors have called and complained that they wanted to move back to asphalt. We are using this medium to tell the cement manufacturers that at the time, the dollar was almost N2,000, they increased cement from N7,500. Why should today that the President has brought dollar to stability to about N1400, and is still going down, why should cement be selling for N9,500? We are requesting cement manufacturers to bring down the cost of cement to N7,000. If after one week they don't do that, I have to complain officially to Mr. President." In their separate remarks, the Honourable Minister of State for Works and the Permanent Secretary Federal Ministry of Works estolled the stance of the Federal Ministry of Works on the policies that would not only fast track job execution but also guarantee value for money and quality project outcome. They urged the contractor to cooperate with the new paradigm under the Renewed Hope administration and work towards delivering the Enugu-Onitsha dual-carriageway on a record time so that Mr. President could commission it for public use. The representative of MTN in his vote of thanks expressed the readiness of MTN in working towards realizing the delivery of the project within the agreed timeline. ...

Feb

2025

FG FLAGS OFF DUALISATION OF AJAOKUTA JUNCTION - OKENE - OKPELLA - AUCHI - EKPOMA - BENIN ROAD IN KOGI AND EDO STATES -Road Construction under President Tinubu has 50-100 Years Guarantee Sequel to the termination of the contracts for Sections II, III, and IV of the Dualisation of Obajana Junction - Benin Road due to non-performance and effluxion of time, last year, and their re-award, the Federal Government, through the Minister of Works, His Excellency, Sen. (Engr.) David Nweze Umahi, CON, FNSE, FNATE has flagged off the said projects. The ceremony was held on Wednesday, 19th February in Ekpoma, Edo State. During the flag-off ceremony, Engr. Umahi gave a brief pathetic history about the road, which moved Mr. President to order a permanent solution on the road using Continuously Reinforced Concrete Pavement (CRCP) technology with a 50-100 years guarantee. According to him, hitherto, commuters and motorists have been going through hardship due to its failure and high traffic volume, hence the dire need for its dualization. He stated that the project has lingered for too long with attendant consequences on the road users. He added that he has been visiting the road since his assumption of duty and has held several meetings with the former contractors but nothing changed. Upon reporting back to Mr. President, he ordered for immediate and permanent solution to alleviate the suffering, which led to the termination of three (3) out of the four (4) sections of the entire alignment. As an adjoining part of the East-West road, it is very dear to President Bola Ahmed Tinubu, GCFR, Umahi posited. It is, as well, a vital link to the Federal Capital (Abuja) and other Northern States with the South-East, South-West, and South-South geo-political zones of the country, thereby helping to connect and improve economic activities. He commended the Governor and the good people of Edo state for the display of team spirit on the project. Umahi disclosed that the Governor does not only supervise State Government works but extends his monitoring to those of the Federal Government. He also expressed his gladness for the governor’s humble disposition and for the quantum of projects going on in the state within a spate of 100 days in office, which was being celebrated on the same day. While appreciating Mr. President for his concern for the plight of the people plying the road, as well as those living along its corridor, the Minister pleaded with them for patience during the duration of the construction of the additional lanes and reconstruction of the existing alignment. He directed the contractors to expedite action on the work, as delays will not be tolerated. In his remarks, the representative of Mr. President and Governor of Edo State, His Excellency, Sen. Monday Okpebholo praised Mr. President and the Minister of Works for coming to the aid of the people of Edo State. According to him, with this kind gesture of Mr. President, light has entered the state. He promised, on behalf of his people, unalloyed support for Mr. President’s re-election in 2027. Also, the Governor of Kogi State being represented by the Deputy Governor thanked Mr. President for the fatherly gesture, assuring him of reciprocity during the elections. In a Goodwill Message, the former Governor of Edo State and Senator representing Edo North, Sen. Adams Oshomole hailed the magnanimity of President Bola Ahmed Tinubu, GCFR, and the untiring spirit of Engr. David Umahi, while thanking God for witnessing the day. It is worthy of note that the dualization of Lokoja - Benin Road is in four Sections, but three sections of the road project fall under Edo State. Section II starts from Okene to Auchi, which is about 63.70km long; Section III starts from Auchi – Ehor, which is about 54.224km long, and Section IV, which starts from Ehor - Benin is about 67.9km long. The Section I (Obajana Junction-Ajaokuta Junction) of the project, which is ongoing, is being handled by Messrs CGC (Nig.) Ltd. They were also awarded Section II, while Section III is being given to Messrs Bua Construction (Nig.) Ltd. and IV to CBC (Nig.) Ltd. ...

Feb

2025

Minister Applauds FERMA Staff for Determination and Resilience The Minister of State for Works, Muhammad Bello Goronyo, Esq has complimented the determination and resilience of the management and staff of the Federal Roads Maintenance Agency (FERMA) in the discharge of their responsibilities. He stated this on Tuesday, 18th February, 2025, while addressing staff of the Agency in Lafia, headquarters of the North Central Zone, during a one-day familiarisation visit and inspection of ongoing works on the Keffi-Gitata-Shendam/Plateau State Border road in Nasarawa State. Goronyo acknowledged the resourcefulness of the FERMA’s personnel in fixing Nigeria's roads despite the inadequacy of annual budgetary allocations. He disclosed that pressures are being mounted on the Agency now, more than ever, from various quarters to maintain the roads despite the mergre resources. Goronyo cited as an example the Lokoja - Abuja Dual Carriageway, sections of which are in bad shape, prolonging travel time from 1 hour 30 minutes to 4 hours. In contrast, the Minister revealed that his journey from Abuja to Lafia was smooth, as well as joyful due to the good road. He said "This is hope being renewed and everybody must be on their toes. The President is determined to move the nation forward and we must support him to actualise his vision and mission." The Minister, who emphasised the determination of the Ministry of Works to resolve all the challenges being faced by the staff, stressed that they should ensure they sensitize the public against packing and abandoning vehicles, especially trucks on the roads. He also called on the Federal Road Safety Corps (FRSC) to support the Ministry’s efforts by safeguarding Federal roads across the country. He informed them that the Managing Director/CEO is addressing issues related to their welfare, while urging them to reciprocate the gesture by ensuring that the Agency continues to deliver on its mandate. The Minister added that the stakeholders across the country have been commending the Agency for their dedication and patriotism in maintaining Nigerian roads despite challenges of funding and security in some parts of the country. He noted that the Government alone cannot maintain all the roads due to the high level of deterioration, calling for a collective effort to ensure safer and motorable highways. Goronyo urged the road users, as well as benefiting communities to protect the infrastructure by not digging holes or creating demarcations. He added that President Bola Ahmed Tinubu, GCFR is ready and determined to ensure that all Nigerian roads are in good conditions for improved economy and assets. The Minister also reiterated the Federal Government's resolve to enhance road maintenance and urged all stakeholders to support the administration's initiatives aimed at achieving safe and durable roads, nationwide. Earlier in his remarks, the Managing Director/CEO, FERMA, Engr. Chukwuemeka Agbasiuu, Ph.d expressed his satisfaction with the progress of the rehabilitation projects in Nasarawa State. He reaffirmed the Agency's commitment to delivering high-quality roads and enhancing travel experience, in line with President Tinubu's Renewed Hope Agenda. Engr. Agbasi also guaranteed field workers training and retraining to equip them with 21st-century construction trends. He added that despite issues of insecurity in the North Central zone, they should not relent in their collective efforts to maintain Nigerian roads. He stated that FERMA is doing its best despite inadequate funding, stressing that it will soon take delivery of brand-new equipment, while the grounded ones would be repaired and put into use. Also, in his opening remarks, the Zonal Head of North Central II, covering Benue, Plateau, Taraba and Nasarawa States, Engr Halilu Umama highlighted the strategic importance of the region as a vital link between Northern and Southern Nigeria. He noted that many projects in the zone are being executed through direct labour between 2022 to 2024 and he outlined major challenges including the high costs of construction materials, equipment rental, low budgetary allocations, and road abuses such as the erection of illegal speed breakers and encroachments on Federal highways. In his Closing Remarks, the Federal Roads Maintenance Engineer for Nasarawa State, Engr. Aliu Muhammad voiced gratitude for the progress made in the past seven (7) months. He commended the leadership of the Ministry and that of FERMA for their commitment to improving road infrastructure and ensuring better conditions for field workers. ...

PUBLIC ANNOUNCEMENT

Jul

2024

OTHER NEWS

Jul

2024

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

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

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

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

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

SPEECHES

Dec

2023

Brief by the Honourable Minister of Works, Senator. (Engr) Nweze David Umahi CON, FNSE, FNATE on the Occasion of the Presentation and Defence of the Ministry’s 2024 Budget io the Joint Committee on Works

The Chairman,
Senate Committee on Works,
Distinguished Senators,
The Chairman,
House Committee on Works
Honourable Members

1.0 INTRODUCTORY REMARKS
I wish to express the appreciation of the Ministry to the Joint National Assembly Committee on Works for this opportunity to present and defend the Ministry’s 2023 Budget Performance and 2024 Budget Proposal. The Ministry received the letter Ref. No. NASS/S&H/COW/01/10/1 dated 30th November, 2023 from the Joint Committee on Works requesting for details and submissions on issues pertaining to the performance of the 2023 Appropriation and 2024 Budget proposal. These documents have also been earlier submitted in response to the said letter. I will also like to explain and highlight some aspects of the submissions in the course of this budget defense.

2.0 OVERVIEW OF THE 2023 APPROPRIATION
The sum of N534, 455,695,989.00 was appropriated to the Ministry of Works and Housing and its Parastatals in the 2023 fiscal year. From this amount, Works and Housing Sectors of the then Ministry was allocated a total Capital of N453,255,980,966.00. Following the demerger of the Ministry, Federal Ministry of Works was allocated the sum of N383, 351,656,449.00 as Capital, Overhead was in the Sum of N525,362,343.96 and Personnel was in the Sum of N6,916,751,203.00. The details of the Appropriation are as follows:

(a)    Capital Allocation:
i. Main Ministry of Works:               N383,351,656,449.00
ii. Parastatals:                                 N 46,215,578,221.00
Total                                             N429,567, 234, 670.00

(b)   Overhead Cost:
i. Main Ministry:                    N535,362,344.40
ii. Parastatals:
a. Office of the Survey-General of the Federation (OSGOF)         N239, 664,804.00
b. Federal School of Surveys (FSS), Oyo          N50, 523,550.00
c. Federal Roads Maintenance Agency (FERMA)      N17, 525,286,292.00
d. Council for the Regulation of Engineering in Nigeria (COREN) N9, 691,801.00
e. Surveyors’ Registration Council of Nigeria (SURCON)             N14, 971,301.00
    Total                                                                                  N18,375,500,092.4

(c)   PERSONNEL COST
i.    Main Ministry                            N6,916,751,203.00
ii.   Parastatals                               N5,234,644,736.00

Total N12,151,395,939.0

3.0 2023 BUDGET RELEASES/PERFORMANCE

As earlier said, the Capital Allocation to the Ministry was N383, 351,656,449.00 after the demerger of Federal Ministry of Works and Housing. The releases so far to the Ministry was in the sum of N184,165,147,332.29, which represents 48.01% of the Capital Allocation in the 2023 Appropriation. This leaves a balance of N199, 405,010,166.71 to be released by the Federal Ministry of Finance (FMF).

3.10. Capital Projects

The sum of N184,165,147,332.29 released up to date to the Ministry from the 2023 Budget Appropriation had been utilized for payments of some certified Certificates for executed works on roads and bridges by Highway, projects of Engineering Services and Common Services Departments. It is to be noted that as at the end of November 2023 the Ministry had a cumulative unpaid certificate in the sum of N1,507,873,365,516.02 (One Trillion, Five Hundred and Seven Billion, Eight Hundred and Seventy-three Million, Three Hundred and Sixty-five Thousand, Five Hundred and Sixteen Naira, Two Kobo) only for all inherited on-going highway and bridge projects. Apart from the pressure on the resources to pay, there is the inadequacy of annual budgetary provisions where in most cases N100m or N200m and even less was provided for projects estimated to cost above twenty- fifty billion Naira or even more. Awarding such projects even though appropriated is difficult on its own because the provision is inadequate to even pay 10% for mobilization whereas the Procurement Act prescribes 30% mobilization. The details of all the 2023 Budget Performance for Highways Capital Projects are provided in the document attached as Annexure I.

3.20 Overhead

Out of the Total Approved Overhead of N535,362,344.40 the sum of N312,294,700.90 was released to the Ministry for overhead costs for the period January - July, 2023, which represents 58.33% of the budgetary provision with an outstanding sum of N 223,067,643.50.

3.30 Personnel Cost

The Personnel Cost of N12,598,351,319.00 for the Ministry is being implemented through the Integrated Payroll and Personnel Information System (IPPIS) programme in the Office of the Accountant-General of the Federation.

4.0 REVENUE GENERATED

The sum of N723,063,678.62 was generated as revenue from January to November, 2023 and all the revenue realized have been remitted to the consolidated Revenue Account (evidence of IGR remittance enclosed).

5.0 2024 BUDGET PROPOSAL
The total sum of N 657,228,251,596 was proposed for the Federal Ministry of Works and its Parastatals for Capital, Personnel and Overhead estimates in the 2024 Appropriation Bill. The breakdown of the proposals is as follows:

5.10   Capital Budget Proposal
a). Main Ministry of Works                                       N 566,466,977,361
b). Parastatals
i. Federal Road Maintenance Agency(FERMA).         N 51, 282,456,911
ii. African Regional Institute for Geo-Spacial Information Science and Technology AFRIGIST (RECTAS) N 104,039,920
Grand Total                                                           N 617,853,474,192

5.20 Overhead Budget Proposal
a). Main Ministry of Works                           N 668,116,856.00
b). Parastatals:
i. FERMA                                                   N 22,027,209,696.
ii. RECTAS/AFRIGIST                                 NIL
          Grand Total                                      N 22,695,326,552

5.30 Personnel Cost Proposal
i. Main Ministry of Works                          N 12,598,351,319
ii. Parastatals                            N 4,081,099,533
             Grand Total                                N 16,679,450,852

Please note that without any presidential pronouncement, the following Parastatals which have been under the Ministry of Works have been provided for in the Budget Proposal for the Ministry of Housing and Urban Development as follows:
i.   Office of the Surveyor-General of the Federation (OSGoF);
ii.   Federal School of Surveying, Oyo (FSS);
iii.   Council for the Regulation of Engineering in Nigeria (COREN); and
iv.   Surveyors’ Council of Nigeria (SURCON)
It will be good that these Committees do get these Parastatals back to the Federal Ministry of Works.

6.0 CATEGORIZATION OF ONGOING HIGHWAY PROJECTS UP TO 2023

The Ministry undertook a total of 2,097of on-going/inherited projects at a total Contract Sum of N13,835,640,624,786. The total amount certified to date stood at N4,772,770,148,140.41, while the total amount paid was in the sum of N3,140,569,453,163,82 as at November, 2023. 3 details are shown in Annex I.

Some of the projects are categorized according to special funding mechanism as follows:

6.10   Highway Project Financed with Presidential Infrastructure Development FUND (PIDF).
A total of Four selected critical projects are being funded under the Presidential Infrastructure Development Fund (PIDF) Project which is managed by the Nigerian Sovereign Investment Authority (NSIA). The projects are:
a.   Expansion and upgrading of Lagos-Ibadan Expressway Section I (Lagos-Shagamu);
b.   Expansion and upgrading of Lagos-Ibadan Expressway Section II (Shagamu-Ibadan);
c.   Reconstruction/Rehabilitation of Abuja-Kaduna-Kano Road; and
d.   Construction of 2nd Niger Bridge and two Bypasses at Asaba and Onitsha.

As at date, the total sum of N846, 365,489,635.12 has been certified out of the initial projects cost N1,535,375,595,518.43. This translates to a performance of 55.12%. The Lagos-Ibadan Expressway has been substantially completed to about 90% but we still lack fund to complete the project. The Abuja-Kaduna-Kano Road is in three sections with about 127km uncompleted in section I (Abuja-Kaduna). Section II which is Kaduna-Zaria is fully completed and section III which is Zaria-Kano is on-going with 20km left uncompleted. The total cost of the three sections is about N655billion. The contractor is seeking for a review of contract to about N1.37trillion to complete the project. We are reviewing the request. However, even though the project will not get up to N1trillion when fairly reviewed, we believe that the unit rates ought to be reviewed. For example, the subsisting unit rate of Asphalt on the project is about N11,000 per square meter, whereas the real cost now is not less than N20,000 per square meter. We have requested the contractor to execute the first 40km of section I on concrete. It is important to note that we do not have fund to continue the project by February 2024 if no funding is injected into the project.

The 2nd Niger Bridge has been completed and was recently handed over to the Ministry. Additionally, there remains the construction of the Approach roads 2A and 2B which were awarded by FEC but have funding challenges to take-off. The remaining two Bypasses in Asaba (2A) and Onitsha (2B) awarded to Julius Berger Nigeria Plc and Reynods Construction Company Nigeria Limited respectively, during the last Administration was initially estimated at about N200billion but now with inflation, the cost may be up to N260billion. There is no funding for these projects and the projects have not taken off. Let me note that without these Bypasses, the completed 2nd Niger Bridge will be almost inoperative. The details of these projects are as shown in Annexure II.

6.20 Highway Projects Financed with the Sovereign SUKUK Fund
The Federal Government through the Debt Management Office (DMO) initiated Sukuk Funding Programme for financing road infrastructure in 2017. The total sum of N683.122bn was raised to fund 25, 28, 44, 71 and 63 number projects in years 2017, 2018, 2020, 2021 and 2022 respectively. All the works milestones for the Sukuk in year 2017, 2018, 2020 and 2021 were completely drawn down while the 2022 Sukuk, issued in the sum of N110,000,000,000.00 is on-going. A total of 63 selected critical projects are being funded under the 2022 Sovereign Sukuk Issuance. As at end of November 2023, the total sum of N50,537,288,079.45 was drawn down translating to a performance of 46%. The details of execution of the projects and drawdown of the 2022 Sukuk Bond is as shown on Annex III;

6.30 The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase I
The NNPC joined the Road Infrastructure Development & Refurbishment Tax Credit Scheme programme by undertaking to finance 21 roads in the sum of N621bn with total length of roads of about 1,804.6km under the NNPC Phase I. These roads were identified by key stakeholders such as the NNPC, Petroleum Tanker Drivers Association (PTD) and the Ministry etc. as being crucial for the efficient distribution of petroleum products across the nation. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N247,729,252,899.54 out of the Federal Executive Council (FEC) approved sum of N621,237,164,794.59 representing 39.88% performance. The funding gap here due to inflation is estimated at over 250bn. The details of NNPC Phase I Funded Projects are attached as Annex IVA;

6.40 The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase II
The NNPC Phase II Funded Projects were approved by the Federal Executive Council in the sum of N1,969,700,168,910.78 for the execution of 44 No. roads with total length of 4,554.19km while the initial Contract Sum was about N3.969trillion. This leaves a funding gap of over N2trillion at the time of starting the projects. Presently, with inflation, the funding gap to have the NNPC Phases I & II completed shall stand at about N3.56trillion (Inflation about N1.5trillion) for two years from now. This funding gap is neither appropriated for nor has any source of funding. This means that without the kind intervention of this Distinguished and Honourable Joint Committees of Works, these projects will not go on mostly from March 2024 when the NNPC funding would have been exhausted. Your kind intervention and advice are highly, highly and urgently solicited. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N752,093,618,603.51 representing 38.18% performance. The level of drawdown seems low because most of the projects needed to be reviewed due to the inflation, The details of NNPC Phase II Funded Projects are attached as Annex IVB.

6.50 Other projects funded under Road Infrastructure Development & Refurbishment Tax Credit Scheme.
Several Companies have leveraged on the Executive Order No.7 of 2019 to commit investments in the construction/rehabilitation of roads and obtain Tax credit. Companies like NLNG Limited, Dangote Industries Limited, BUA International Limited, MTN Nigeria Communications Plc, Mainstream Energy Solutions Limited and GZI Industries projects have embraced the Road Infrastructure Development & Refurbishment Tax Credit Scheme program. Twenty-one projects at a total cost of N1.338trillion outside of those being funded by the NNPCL are being executed under this Scheme. The details are attached as Annex IVC; and
a) Projects funded from Multi – Lateral Loans.
4Nos. major highway and bridge projects are being funded through Multilateral Loans and grants from the African Development Bank (AfDB) and the China Exim Bank. The details of these projects are attached as Annex V.

7.0 2023 APPROPRIATION OF ALL ONGOING EMERGENCY/SPECIAL REPAIRS AND LIMITED REHABILITATION PROJECTS

These are projects being executed under emergency repairs works along the Federal Highway network. The projects under this category have a total contract cost of N419,841,989,869.00, with a total amount certified in the sum of N307,486,496,856.58, while the total amount paid is in the sum of N 123,213,264,774.77, the Ministry is indebted to Contractors to the tune of N 184,273,232,081.81. The details of these projects are included in Annex I.

8.0 INTERVENTION ON TERTIARY INSTITUTIONS PROJECTS
These are projects being executed under the intervention in Federal Government Tertiary Institutions. Out of 108 projects under this category at a total contract cost of N15,641,954,804.16, 61 projects have been completed and handed over at a total cost of N10,790,866,435.35 as at end of November 2023. Twenty-one projects at a total cost of N3,874,482,841.53 have been completed awaiting handover, while the remaining 26 at a total cost of N3,491,998,752.77 are on-going. The details of these projects are attached as Annex VII.

9.0 OVERGROWN VEGETATION CONTROL PROJECTS
These are projects being executed under the intervention on Federal Government Tertiary Institutions. The projects under this category have a total contract cost of N2,333,448,750.00, with a total amount certified in the sum of N1,795,927,968.71, while the total amount paid is in the sum of N62,060,468.75, the Ministry is indebted to Contractors to the tune of N1,733,867,499.96. The details of these projects are included in Annex I.

10.0 PROJECTS PRIORITIZED FOR COMPLETION 2022-2024
In spite of all odds, 21 major road and bridge projects have been completed and some were commissioned, while others are ready for commissioning. The total cost of the completed major road and bridge projects is in the sum of N498,802,362,642.46 with a total length of 489. 97km. Also, to be completed in 2024 is the 260 Emergency Repair works in the 2023 Supplementary Appropriation at a total cost of about N260bn. The detail of completed projects is attached as Annex VI.

11.0 BRIDGE CONSTRUCTION/ REHABILITION PROJECTS
Under the 2023 budget, the Ministry undertook massive rehabilitation of bridge projects, some of which have never been maintained since they were constructed over 50 years ago. Human activities on these bridges (i.e. vandalization, fire incidents) have left these bridges in deplorable state and unserviceable conditions. The Ministry is trying to sustain these critical works in the 2024 budget as well as undertake the construction of new bridges where there was none in order to reduce travel time as well as the reconstruction of bridges to replace collapsed ones.

These projects are:
a).   Comprehensive Repairs of the damaged elements of the Third Mainland bridge superstructure: This was procured this year and works are currently ongoing and is satisfactory so far. The second Phase which involves the substructure repairs is being processed for award.
b).   Comprehensive emergency repairs of Eko and Marine bridges in Lagos State: Works are ongoing on these bridges. The Contractor has attained appreciable progress and is being supported financially to enable expeditious completion due to the emergency nature of the works.
c).   Proposed Rehabilitation of Carter, Iddo, Liverpool and Iganmu bridges in Lagos State: The present condition of the above bridges calls for urgent rehabilitation works to restore the bridge integrity and forestall further deterioration that may be detrimental to road users. In this regard, the procurement process is already ongoing within the Ministry for the emergency award of contract for the repairs/rehabilitation of these bridges.
d).   The Rehabilitation of Jimeta bridge in Adamawa State and Murtala Mohammed bridge at Koton Karfe along Lokoja – Abuja Road; Works on these bridges are ongoing and will soon be completed.
e).   Proposed construction of Shendam bridge in Plateau State, Reconstruction of failed bridges in Enugu State and the Construction of Buruku bridge in Benue State; and
f). Reconstruction of three failed Bridges on East/West Road

These are new bridges that are required to ameliorate the sufferings of the host communities as well as other commuters. Procurement of contract for the construction of these bridges are already at an advanced stage and will soon be completed. Funds will be needed to bring them into reality.

12.0 NEW PROJECTS IN 2024 BUDGET
There are new projects captured under the 2024 Budget at a total cost of N102,956,624,538.00. See Annexure 13

13.0 PROSPECTS AND PROSPECTS OF THE 2024 BUDGET FOR HIGHWAY PROJECTS

The policy thrust regarding the 2024 budget for highway projects is to ensure completion of some critical on-going projects which have attained significant levels of completion while keeping the rest alive through minimal appropriation. 693 new projects have been proposed in the 2024 budget, which are critical to improving road network connectivity and thus enhancing traffic circulation on the Federal Road network, necessary for boosting socio-economic activities in the country. The primary objective is enabling the Ministry achieve its mandate in providing a quality Federal Road network that serves as an environment to aid socio-economic growth of the country.

The main challenge to highways development in the Country remains inadequate funding. As at date, Government is committed to highway contractors to the tune of about N13.835 trillion with a total of about N1,507,873,365,516.02 unpaid certificates for executed works. Secondly, the dearth of younger Engineers/Technical Officers in the Ministry as a result of embargo on employment is affecting effective project supervision at the sites. It is expected that more sources of funding of highway projects be explored as well as lifting the embargo on employment of needed Engineers/Technical officers at middle level to enhance supervision of projects. Our Ministry has set up six committees to review all debts, approved and unapproved variations on prices of basic rates, and all augmentations that occurred before May 29th 2023 and from May 30th 2023 till date.

14.0   RECOMMENDATIONS
14.10 From the fore-going, I would like to recommend as follows:
a)   The provision of an Emergency Fund of about 30% of the Budget Provision to cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons;
b)   An increase of the Ministry’s present budgetary allocation to about N1.5tr to complete at least 10 selected critical roads and bridges in each of the six geo-political zones of the country;
c)   Urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
d)   Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the projects unit rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while unit rates regime will take effect on contractors in line with the current realities of the construction industry.
e)   More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges;
f)   Raising of Bonds from the Capital Market to finance road development in the country;
g)   Creation of an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) can be effective; and
h)   That appropriations for projects be such that no projects when started should last for more than four years.

14.20 ISSUE OF ASPHALT (FLEXIBLE) VERSUS CONCRETE (RIGID) PAVEMENT
It would be my great pleasure to clarify the misunderstanding of the Ministry’s new policy direction regarding the use of Rigid pavement on her projects. I have to state categorically that no Contractor is prevented from executing the scope works originally signed with the client once certain conditions are observed, which are provision of a 15year shelf-life Insurance Guarantee for the works and a maximum of 5% of Variation of Price (VoP) in the Contract. The Ministry’s new policy is to prevent excessive augmentation of contracts considering the scarcity of Forex and weakening of the Naira against the Dollar which makes the cost of bitumen (which is fully imported) increase in geometric progression against the arithmetic progression rise in cement prices in concrete road pavements. In these times of rising inflation and scarce resources, the Country needs to look inwards to conserve foreign exchange.

15.0 COMMENDATIONS
We thank the President and Commander-in-Chief of the Federal Republic of Nigeria, His Excellency, Senator Asiwaju Bola Ahmed Tinubu, GCFR for the intervention of his Renewed Hope administration in the Works sub-sector and approval of an enhanced budget envelop for the Federal Ministry of Works. We also thank the leadership of National Assembly, the Chairmen and members of the Works Committees and indeed members of the National Assembly for their painstakingness in ensuring the speedy passage of the 2024 Appropriation Bill.

Nweze David Umahi
Federal Ministry of Works
December, 2023

PHOTO NEWS

Nov

2024

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

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