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Jun
19
2024

LATEST PRESS

FEDERAL GOVERNMENT APPROVES FINAL FUNDS FOR THE COMPLETION OF BODO-BONNY ROAD, TASKS JULIUS BERGER NIGERIA PLC ON DECEMBER DEADLINE FOR PROJECT DELIVER

As Honourable Minister Berates RCC for Leaving the Site Despite being Funded, Issues A Seven-Day Ultimatum to Remobilize of Risk Job Termination

1. In furtherance of the resolve of the President of the Federal Republic of Nigeria, His Excellency President Asiwaju Bola Ahmed Tinubu GCFR to bring to a conclusive end the perennial transportation challenges in Bodo-Bonny, South South of Nigeria and thus enhance the socio-economic prospects of the two communities of Rivers State, the Federal Government has approved the total and final sum of N280 billion for the completion of Bodo-Bonny road project. This was revealed by the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi CON during his inspection visit to the project site this 19th June 2024. He warned that the contractor handling the project, Julius Berger Nigeria Plc, must work round the clock to beat the project delivery timeline of December 2024.

2. The Honourable Minister expressed reservation over the Bodo-Bonny project administration by the contractor, insisting that the amount of money paid needed to correspond with the project completed. He, however, enjoined the contractor to ensure that no further excuses were given on the project delivery timeline as Federal Government would not approve further funds for the project for any reason of variation whatsoever. "And in case the devil comes to play, whatever happens, we are not increasing this project cost. It's a package, and it's called lump sum final completion package to Julius Berger to do a beautiful job and attach their name. It has been 11 years, and we don't want it to exceed this year. And so it is in your interest that you cooperate, " He further added during the site visit, " I will be asking Julius Berger Nigeria Plc, is there anything that the Minister of Works and NLNG will do to fast track this engagement so that we can arrive at the destination by the 15th of December 2024?". The Honourable Minister commended Mr. President’s commitment towards the completion of the road project. He praised the perseverance of the Bodo-Bonny Peace Committee and the cooperation and uprightness of NLNG funding the project.

3. Similarly, the Honourable Minister has expressed dismay over the attitude of RCC handing 15km East West Road (From Port Harcourt Eleme Junction to Onne Port Junction) for their inordinate delay on the project despite receiving mobilization for the job and warned that Federal Government would not entertain any request for Variation on Price (VOP). "We are very sad with the manners and behaviours of this contractor, RCC. The federal government has paid over 40 billion on this project, and not even one kilometer has been completed. And let me make it very clear that the cost we have given on the review of this project does not attract any VOP. There is no VOP on the project as far as the rates are concerned now." He decried the sufferings of the road users and expressed intention to source funds to maintain the road for the time being pending when the company remobilizes to the site. "So, we have to see where we can search for funds and get any contractor around here to maintain the road. We need to maintain the road. We need to pity the people. It's not acceptable what our people are passing through for an excuse from RCC that they are importing machines for the job.

4. Other projects inspected by the Honourable Minister were the dualization of East-West Road section II (sub section II) (Ahoada-Kaiama in Rivers/Bayelsa States) being handled by Setraco Nigeria Ltd and the construction of multiple box culverts at flood damaged locations along the dualization of East-West Road (section II) Ahoada-Kaiama in Rivers/Bayelsa States being handled by Messrs. Rock Result Nigeria Ltd.

5. In their words of commendation to Mr President, the Deputy Chief Whip of the Senate and Senator representing Ebonyi North Senatorial District. Sen. Barr. Onyekachi Peter Nwaebonyi who was part of the inspection visit and the spokesperson to the Bodo-Bonny Peace Committee, Professor Jasper Jumbo thanked the President of Nigeria for the great difference his administration has brought in the Nigeria's road infrastructure trajectory. They appreciated the Honourable Minister of Works for handling the mandate of the Ministry of Works with an exceptional sense of passion and professionalism.  Sen. Nwaebonyi said, “I want to use this opportunity to appreciate once again the performing Minister of Works who is doing wonderfully well on all our roads across the nation. This is one of them, the Bodo-Bonny Road. And I believe that with this constant supervision, the contractors will live up to expectations and deliver the job within a record time." Professor Jasper Jumbo said, "And I must commend your patriotism. I must commend your professionalism. One thing that this administration has shown us is that we enlisted people of credibility and people of integrity. I commend Mr. President, for bringing such a minister that is committed to giving Nigeria the best. This is the practical aspect of Renewed Hope. 

6. The NLNG representative and manager Government Relations, Dienye Godson also thanked Mr. President and his team for the will to complete the project. "I must commend the Honourable Minister for all the efforts he has put in. He has spent several weeks and obviously has been very patient. And that has led us to where we are today. So, as a company, we are happy. So, at this stage now, we'll go back and go through our own internal processes to ensure that we provide as much support as we can to the government." In his assurances on behalf of Julius Berger Nigeria Plc, the project manager stated, "We will not lean back, and we'll continue and expedite the re-mobilization of this project to ensure our full commitment. And as you rightly have said, Honourable Minister, we as partners in progress must have all hands-on deck."

Jun
17
2024

HONOURABLE MINISTER OF WORKS, SEN UMAHI CELEBRATES EID AL-KABIR WITH THE MUSLIM COMMUNITY IN EBONYI STATE, ENJOINS ALL NIGERIANS TO IMBIBE  THE VIRTUES  OF SACRIFICE,CHARITY, HARMONIOUS CO-EXISTENCE WHICH ARE THE LESSONS  OF EID AL-ADHA The Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi CON has urged Nigerians to reflect on the religious significance of Eid al- Kabir and the reinforcing values of sacrifice, gratitude, charity and compassion, devotion and unity among one another, and quest for national harmony which are the hallmarks of the Festival of Sacrifice celebrated by the Muslim faithfuls all over the world.  He gave this advice when the Muslim community in Ebonyi State and other stakeholders came to solidarize with him in his residence in Abakaliki on this important holiday in the Islamic calendar. The Honourable Minister commended the sense of unity and love among the Hausa, Igbo, and Yoruba communities who are Muslim faithfuls in Ebonyi State and charged them to continue to support and pray for the Renewed Hope administration of His Excellency President Asiwaju Bola Ahmed Tinubu GCFR, who is working magnificently to return the country to the part of honour and glory.  He further urged them to continue to support the administration of the Governor of their host State, His Excellency, Rt. Hon. Bldr. Francis Ogbonna Nwifuru, FNIOB GGCEHF, who has remained inclusive and steadfast in the discharge of his People's Charter of Needs. "President Tinubu is trying very much to help this country. We know that things are hard. And if he doesn't do what he's doing, in the future, we may not have a country called Nigeria. So, the much his disciples can help, they try to help. That's why I rushed home, so that I will join my government, to assist you people, to buy food, to celebrate. And so, I want you to pray for Mr. President and pray for our Governor. In Ebonyi State, there's no discrimination, whether Igbo, Hausa, Yoruba or other tribes. We are one people." Similarly, the Honourable Minister celebrated with former State Executive Council members and other stakeholders who visited to bid him welcome to the State on the Salah holiday.  He charged them to continue to be very loyal, responsive, and supportive to the administration of Mr. President and that of the Governor of Ebonyi State, noting that the APC administration at the Federal and State levels is working concertedly and inclusively to meet the yearnings of Nigerians. "Let's try to know that we are a community of one people. Let's try to know that North, South, Central is just for the convenience of our political administration. Let's be united, for if you are segregated, you are not helping the government."  He commended the State Government and the stakeholders for the peace in the State. "I want to commend you people and commend the government again for the peace that is in the State. And I want you to continue to support and pray for him." In his response, the spokesman to the Muslim faithfuls, Alhaji Idris Datti Suleiman thanked the Honourable Minister of Works for his usual sense of benevolence to the Muslim community. He particularly thanked him for the huge Salah gifts and donations he made to them, including the women, youths, and others whom they represented in the visit. He assured the Honourable Minister of the unwavering support and solidarity of the Muslim community in Ebonyi State to the administration of Mr. President and that of their host Govermor.  "Permit me to say the truth. I was born and brought up in Ebonyi. I grew up here. We have so many Honourable Ministers since the creation of Ebonyi State to date. No one has shown such a kind gesture as you, the Honourable Minister of Works.  Not any Minister has ever invited the Muslim faithfuls in his house to celebrate a Muslim festival.  In fact, your own is quite unique because you invited us at a time that every Nigerian needed help. Thank you sir"   ...

Jun
16
2024

HONOURABLE MINISTER OF WORKS INSISTS NIGERIAN ROADS MUST LEAD THE ECONOMIC REVOLUTION AGENDA OF PRESIDENT ASIWAJU BOLA AHMED TINUBU GCFR AS FEDERAL GOVERNMENT CONSTRUCTS A MEGA TWIN FLYOVER TO FREE YEARS OF HEAVY CONGESTION AT EMENE IN ENUGU STATE, TO GIVE IMPETUS TO COMPETITIVE DEVELOPMENT IN SOUTH-EAST. In his passion to work day and night, workdays and public holidays to meet the desire of Nigerians in having an enduring network of road infrastructure that will stimulate Nigeria's economy, the Honourable Minister of Works, His Excellency, Sen Engr. Nweze David Umahi CON made it today, Sunday, 16/06/2024 to Enugu State to inspect some Federal Government's projects in the State.  This is coming after his marathon inspection visits to some Federal Government's projects in Lagos State, including the ongoing Lagos-Calabar Coastal Highway yesterday, where he announced the decision of the Federal Government to reduce the entire corridor of the Lagos-Calabar Coastal Highway, from phase two, section two of the coastal route to effective pavement of 55km including the train tracks. Upon arriving Enugu State, the Honourable Minister visited  the ongoing reconstruction  of the collapsed New Artisan bridge at  Enugu-PH Expressway, Enugu capital  city. He moved to inspect the ongoing construction  of a 23-span mega twin  flyover bridge at Emene in Enugu State.  This flyover bridge is described as the best thing that never happened to the people  of Enugu and neighbouring States until  the coming  on board  of the Renewed Hope administration of President Asiwaju Bola Ahmed Tinubu GCFR, who saw the need to decongest  the traffic  ridden axis of Enugu city to give way to stronger socio-economic competitiveness within the region. It would be recalled that the road which links to many suburbs within the State and the neighbouring States has for many years been a nightmare for vehicles, some of which ply the route through Benue State to far parts of Northern Nigeria and some others to parts of South-South through Cross River State. The administration of Mr. President thought it expedient, in keeping with his agenda of robust economic revolution for a sustainable future of our country, to construct for Enugu State a mega twin flyover that will beat the elegance and utility of all flyovers ever built in South-East.  This flyover, when completed, will change the face of Enugu State, attract trade and investment to the State, reduce accident and insecurity, improve safety and increase patronage to the economic facilities, including Airports in Enugu and Ebonyi States, and that of other neighbouring States. Mr. President means well for Nigeria and is determined to revolutionize the economy through road infrastructure development.  The Honourable Minister has this as a task that must be accomplished. He knows the job. His passion to deliver is unequalled.   ...

Jun
11
2024

FEDERAL MINSTRY OF WORKS ADOPTS MORE WORKEABLE MEASURES TO END DELAYS OF CONTRACTORS  IN PROJECT  DELIVERY, EXPRESSES COMMITMENT  TO CREATIVITY, INNOVATIONS AND THINKING  OUT OF THE BOX TO MEET THE ROAD INFRASTRUCTURE  NEEDS OF NIGERIANS As part of strategic  infrastructure  development  masterplan  of the Renewed Hope administration of His Excellency President Asiwaju Bola Ahmed Tinubu GCFR, the Federal Government  has adopted workeable measures  to end the old order of unnecessary delays in the execution  of road infrastructure  projects by  contractors and has taken steps to rejig the monstrous contract price variation  clause which has been a major clog in the wheel of progress of project execution over the years.  This was contained in the briefing of the Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi CON, during a meeting  with contractors handling  Federal Government's projects, held at the Ministry's Headquarters, Mabushi-Abuja on 10th  June 2024. The Honourable Minister expressed  the urgency of thinking realistically, creatively, innovatively, and thinking  out of the  square to  overcome  the funding  challenges that face road infrastructure development  in Nigeria.  He narrated, " When the Renewed Hope administration came on board on 29th May 2023, Mr. President  inherited over 2600 ongoing projects  from the past administration amounting to over N15 trillion, out of which only about N2 trillion was certified  and paid.  And so we now have ongoing  projects  of N13 trillion, including  budgetary projects, NNPCL, SUKUK, Presidential Initiative  Development  Projects, other Tax Credit  Scheme Projects  of NLNG, MTN, Dangote,  BUA, Mainstream and projects  under EPC +F, PPP"  He stated that the  aftermaths  of fuel subsidy and the forex forces affected  drastically  the contract cost elements and pricing of which Variation on Price( VOP) could not provide a remedy especially  for jobs awarded so many years ago, and where  VOP on contracts was sometimes  hitting  500%. He further  stated  that in looking  for a solution, the Ministry  sought for and got Mr. President's   approval to give an envelope in the 2024 budgetary  provision to keep all the inherited  projects  alive, believing  that more  funding of such projects could  come  by thinking  outside the box.  The new projects under the 2024 projects, including the constituency projects of the National Assembly, also have poor budgetary  allocations. In tackling responsibly the challenges  of funding, price  variation, and delays  in projects delivery, the Honourable  Minister introduced  responsive  approaches which were adopted as the Ministry's measures to overcome  the challenges  of road infrastructure development in Nigeria. Such measures  include but are not limited to reviewing  the VOP clause  to ensure workability  in line with the economic realities,  making  it a policy  that all contractors handling  two carriageway projects (with the exemption of the 3 legacy projects) must first complete  one side of the two carriageways and thereafter  continue  with the second part subject to availability of fund, advancement  of funds after  award of contract  is subject to conditions contained  in the bid document, going  forward. Other measures adopted were that contractors must have a timeline for project delivery, and every contractor shall have a duty to maintain  the road under construction until the entire project  is completed  and delivered.  A deadline shall be given for all ongoing projects, and with time, all projects that have no funding  shall be stood down, but projects  will be selected  Zone by zone or State by State for funding. In applying these measures,  he emphasized that all contractors will be treated equally. "One thing that is our policy is that no contractor in the Ministry of Works will be treated differently.  Whether you're an indigenous contractor or you're a foreign contractor, insofar as you can turn cement to the right grade and place it rightly. You're a good contractor; we check, and it's good."  The Honourable Minister noted the various  projects  completed  by contractors  and other major ones to be ready for commissioning  from July, 2024 and directed  the Directors in charge  of each Geo-Political  Zone to officially and publicly commission  the various  projects completed  in their  respective  Zones.  He further directed  that committees  made up of the Ministry's  Engineers and the  Media correspondents  be set up to pay inspection  visits  to the respective  zones to assess  the level of project performance in all the federal government projects being  handled  by the Federal Ministry of Works  under the Renewed Hope administration.   ...

First First

PUBLIC ANNOUNCEMENT

Apr
19
2024

 

OTHER NEWS

Feb
19
2024

Meeting of Cement Manufacturers – Dangote Cement Plc, BUA Cement Plc, Larfarge Africa Plc & Cement Producers Association with the Honourable Minister of Industry, Trade & Investment, Dr. Doris Uzoka-Anite and the Honourable Minister of Works, Sen. Engr. Nweze David Umahi, CON held at the Office of the Honourable Minister of Works, Mabushi, Abuja on Monday, 19th February, 2024


1. The meeting noted the challenges of the manufacturers like:
    a.    Cost of gas;
    b.    High import duty on spare parts;
    c.    Bad road network;
    d.    High foreign exchange; and
    e.    Smuggling of cement to neighbouring nations.

2.    The government noted the challenges and reacted as follows:
a.    Federal Ministry of Industry, Trade and Investment to seek some remedies from Mr. President on cost of gas and import duties.

b.    Federal Ministry of Works to give more attention to fixing of the roads, especially around the locations of the manufacturers.

c.    On the issue of smuggling cement, the Federal Ministry of Industry, Trade and Investment to deepen the already started engagement with the National Security Adviser on how to stop the smuggling.

3.     The cement manufacturers and the Government noted that the current high price of cement is abnormal in some locations nationwide.  Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement.  Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on the location.

4.    Going forward, Government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her distributors or retailers found wanting.

5.    Government expects the agreed price to drop after securing government's interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.

6.    The meeting agreed to reconvene in 30 days to review progress made.

SPEECHES

Dec
12
2023

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

 

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

 

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

 

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

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

 

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

 

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

Total                                              N12,151,395,939.0


3.0    2023 BUDGET RELEASES/PERFORMANCE

 

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

 

3.10.    Capital Projects


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

 

3.20    Overhead   

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

 

3.30    Personnel Cost


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

 

4.0    REVENUE GENERATED

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

 

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

 

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

 

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

 

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

 

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

 

6.0     CATEGORIZATION OF ONGOING HIGHWAY PROJECTS UP TO 2023

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

 

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


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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13.0    PROSPECTS AND PROSPECTS OF THE 2024 BUDGET FOR HIGHWAY PROJECTS

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

 

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

 

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

 

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

 

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


Nweze David Umahi
Federal Ministry of Works
December, 2023

OTHER NEWS

Jun
18
2024

THE HONOURABLE MINISTER HIS EXCELLENCY, SEN. ENGR. NWEZE DAVID UMAHI CON MOVES TO INSPECT PROJECTS IN SOUTH-SOUTH MOMENTS AFTER EID AL- KABIR CELEBRATION

The Honourable Minister, His Excellency, Sen.  Engr. Nweze David Umahi CON in his passion to transform  the road infrastructure, has again moved to inspect  projects in parts of South-South after  spending  some time with his people in his country home to mark this year's Eid al- Kabir.

PHOTO NEWS

Mar
05
2024

HON. MINISTER OF WORKS, HIS EXCELLENCY SEN. ENGR NWEZE DAVID UMAHI CON (RIGHT) WITH THE DIRECTOR, INFRASTRUCTURE AND URBAN DEVELOPMENT, MIKE SALAWOU HELD AT THE OFFICE OF THE HONOURABLE MINISTER FEDERAL MINISTRY OF WORKS, THIS 5TH MARCH 2024.

Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi CON (Right) with the Director, Infrastructure and Urban Development, Mike Salawou held at the office of the Honourable Minister Federal Ministry of Works, this 5th March 2024.

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