Federal Ministry of Works

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Minister Federal Ministry Of Works Engr. David Umahi.

Road Construction Inspection Tour.

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Road Construction Inspection Tour.

Road Inspection.

Road Construction Inspection Tour.

Dec

2024

LATEST PRESS

SEN. UMAHI COMMENDS WORK PROGRESS ON LAGOS-CALABAR COASTAL HIGHWAY PROJECT, RECOUNTS PROSPECTS OF RENEWED HOPE LEGACY PROJECTS TO NATION'S ECONOMIC PROSPERITY.

-SAYS, PROJECT REVIEW ON AWARDED SECTIONS OF THE COASTAL HIGHWAY IMMINENT TO FACTOR ADJUSTMENT IN ALIGNMENT AND DELIVERABLES

The progress and quality of work being done on the Lagos-Calabar Coastal Highway project has been commended as a signature of excellence and innovation on road infrastructure development by the Renewed Hope administration of the President of Nigeria, His Excellency President Bola Ahmed Tinubu GCFR. This commendation was made by the Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi CON, when he paid inspection visits to Sections I and II of the project in Lagos being handled by Hitech Construction Company Ltd on 20th December 2024.

Speaking on the deliverables of the investment, the Honourable Minister stated that the contract would be reviewed to accommodate landmark features that would add value to the socio-economic potentials of the project. "We're going to plant trees. And of course, we are going to also have some lay bay. We can decide every five kilometres we have a lay bay where we connect all our CCTV cameras. And then we have vehicles and the security within the cabin there, so that the response time will be like 10 minutes. I'm sure that you've witnessed what we did at Third Mainland Bridge. That's what we intend to replicate in all our highways. And so the entire stretch of 750 kilometers to Calabar will be under CCTV, powered by solar. And then every five kilometers or 10 or 15, as we may agree, we will have portal cabin where we have security posts, no blocking of the roads, we have a viewing centre, and then you view the entire stretch left and right. We will agree on the number of kilometers, depending on the capacity of the cameras." On the imperative of the contract review, he further stated," The service lane was never envisaged, CCTV camera was never envisaged. There was no single item of work, like we're having in all the projects from the removal of topsoil, not to talk of the removal of debris.

He praised the vision of Mr. President in initiating legacy projects that would connect the critical economic corridors and boost transportation ecosystem in the 6 Geo- political Zones. He noted that the four Renewed Hope legacy projects and the inherited ongoing projects were on course and that milestone project execution was adopted to ensure a sense of equality among the 6 Geo-Political Zones. He said that some of the sections of the projects being executed nationwide, including the inherited ongoing projects, would be ready for commissioning by May 2025. "Work is progressing on Lagos-Calabar Coastal Highway. We have the Sokoto- Badagry Superhighway. Work is seriously in progress on the project. The first 120 km, work is going on Sokoto. It has been procured. And work is going on by Hitech, using concrete.
And then, you have the Kebbi section, 250 km. Work is also going on there. And so, we believe strongly that we'll be able to have about 20 km in both sections to commission by May 29th. In section one of the Lagos-Calabar Coastal Highway in South West, we are very sure that we'll commission the first 20 km in section one and 10 km in section two." He commended the intervention of Mr. President in the area of funding of the projects despite his interventions in other critical priority sectors of the economy. "The President has given very serious attention to road infrastructure. Don't forget that this Coastal Highway and, of course, the four Legacy Projects all have the train track incorporated. The construction of the train track for this section I is going to take off in 2025. So this is what we are doing. And we believe strongly that the President is going to give the nation of Nigeria the road infrastructure that they have been yearning for."

Earlier in her welcome remarks, the Federal Controller of Works, Engr. Olukorede Kashia recounted the experiences encountered at the commencement of the project but expressed confidence in the timely delivery of the project by the contractor handling the project. "We encountered a lot of issues which were not foreseen because they were really covered. Like I said earlier, when you're doing a preliminary design, you cannot do a borehole at every meter. So when you do, at one meter, you do another one at 20 meters. So, in the process of executing the project, we encountered a lot of refuse dumps. It was like this place was like Olushosun, where they dump dirt to the magnitude of about five meters depth in some places. And then the contractor has carted away all that and then replaced it with good soil. That's sand filling from the ocean, as you can see, good sand filling, and then we had to wait a little." Others who spoke during the event were the Acting Director of Highways Road Design, Engr. Saidu Musa and the Managing Director of Hitech Construction Company Ltd, Dany Abboud

Dec

2024

MINISTER COMMISSIONS SOLAR-POWERED STREETLIGHT PROJECT IN LAGOS The Honorable Minister of State for Works (HMSW), Muhammad Bello Goronyo, Esq, has commissioned a solar- powered streetlight project in Lagos on Monday, 2nd December, 2024. The streetlights being provided by the Federal Emergency Roads Maintenance Agency (FERMA), are a relief and a welcome development for the residents of the community of Isale- Eko in Lagos State. Goronyo identified the benefits of the project to include improvement in the socioeconomic well-being, as well as mitigating insecurity challenges confronting the area. “This aligns well with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR,” he added. The Minister further urged residents to take full ownership of the project with a view to safeguarding it from vandalization by unscrupulous elements. The HMSW, on an earlier Courtesy Visit to His Royal Majesty, the Oba of Lagos, Rilwan Babatunde Osuolale Akiolu, in his Iga Idugaran Palace, noted that the initiative is part of a conscious effort by the Federal Government at investing in renewable energy solutions, stating that “as a responsible Government, we have to continue to do more to improve the wellbeing of our teeming communities.” He solicited for prayers and support of His Royal Majesty and indeed Nigerians to be able to do more for the overall growth and development of the nation. Speaking at the Palace, the Managing Director/CEO of FERMA, Engr. Dr. Chukwuemeka Agbasi, thanked the Oba for the warm reception accorded the entourage, also stated that the installation of the solar powered lights will provide extended hours for trading and, therefore, arrest unemployment among the youth. While commending the community for providing an enabling atmosphere for the installation of the facility, Engr. Agbasi, cautioned against vandalisation, pledging that FERMA has resolved not shirk in its responsibility to ensure adequate maintenance, as well as deliver value in road maintenance in the community and the state. Responding, HRM Oba Akiolu, appreciated the Honourable Minister for the visit, noting that FERMA has been wonderful and cooperative in the discharge of its duties to the community. His Royal Majesty also used the occasion to warn miscreants and criminals to desist from vandalising public goods and infrastructure, assuring that Nigerians will laugh soon as the Government of the day is responsible and working very hard to put things right. Patience, the Monarch emphasised, is the keyword, while appealing to Nigerians to give peace a chance. ...

Nov

2024

Nigeria - China Partnership: Driving Growth and Development The Honourable Minister of State for Works (HMSW), Mohammed Bello Goronyo, Esq has applauded the partnership between Nigeria and China as a driver of growth in infrastructure, transportation, mining and knowledge transfer. Speaking at the CAETE Exhibition in Africa (Nigeria) and the 18th China Engineering and Technology Expo in Abuja on November 28, 2024, Goronyo emphasised the nations' shared commitment to sustainable development through strategic cooperation. The Minister highlighted Nigeria’s National Integrated Infrastructure Master Plan (NIIMP), which aims to increase infrastructure’s GDP contribution from 30-35% to 70% by 2043, prioritising investments in transportation, energy, healthcare and water systems. He noted China’s significant role in projects like the Abuja-Kaduna Railway, Lagos - Ibadan Expressway and renewable energy initiatives, which have boosted connectivity, commerce and local capacity. He also stressed the importance of green infrastructure, smart cities, and innovative financing mechanisms to ensure sustainability and urged for greater technical training and public-private partnerships. “I am delighted to share Nigeria's strides in redefining its infrastructure landscape through the National Integrated Infrastructure Master Plan (NIIMP). This long-term strategic framework prioritises investments across key sectors, including transportation, energy, water, irrigation and healthcare infrastructures,” the HMSW further emphasised. NIIMP will promote innovative financing models, public-private partnerships, as well as enhance collaboration with global partners like China to deliver on sustainable and inclusive infrastructure. Through this plan, it is hoped that Nigeria will build robust infrastructure, which will drive industrialisation, improve the quality of lives and position the nation as a hub for trade and investment in Africa. This is in tandem with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR. In his Keynote Address, the Honourable Minister of Transportation, Sen. Abubakar Sa’id Alkali, commended the progress achieved in the rail, road and maritime sectors through a Nigeria-China collaboration. The Ambassador of China to Nigeria, Yu Dun Hai described the partnership as a model for South-South cooperation with transformative projects like the Abuja - Kaduna Railway, which showcase the potential of engineering and technology. The event reaffirmed the role of Partnerships in fostering economic growth, regional integration and sustainable development, which align with one of the Renewed Hope Agenda’s vision of enhancing infrastructure and transportation as enablers of growth. The Chairman of the Chinese Community in Nigeria, Mr Erie Ni emphasised that the event is of key importance and would deepen the relationship between the two countries, fostering immense innovation, growth and sustainable development. He stated that "over the years, China and Nigeria have been involved in a dynamic and mutually beneficial relationship as Chinese enterprises, engineers and investors have been privileged to contribute to Nigeria's development in various sectors including construction, telecommunications, energy and transport." The Director General and Global Liaison, the Nigeria – China Strategic Partnership Reached by the Two Countries, Joseph Olasunkanmi Tegbe reiterated the need for enhanced collaboration, cultural exchange and trade to cement a prosperous future for both nations ...

Nov

2024

BAGO, NASS MEMBERS AND OTHER STAKEHOLDERS LAUD FEDERAL GOVERNMENT - CALLS FOR THE TERMINATION OF SULEJA - MINNA DUALISATION CONTRACT - Federal Government's Renewed Hope Agenda Brings Development to Niger State. The Administration of President Bola Ahmed Tinubu, GCFR continues to positively impact the lives of Nigerians through one of its Renewed Hope Agenda, anchored on enhancing infrastructure and transportation as enablers of growth. The Minister of Works, H.E. Sen. (Engr.) Nweze David Umahi, CON, FNSE, FNATE stated this at a Town Hall Meeting and Stakeholders’ Engagement on the construction of the 125-kilometre Section I, 3-lane Single Carriageway (Niger State component) of the 1,068-kilometre Sokoto - Badagry Superhighway in Minna, Niger State, where he discussed the development of road infrastructure. Umahi highlighted the importance of the meeting, which focuses on constructing the 125-kilometre Niger State alignment of the larger 1,068-kilometre Sokoto-Badagry Super Highway. According to the Minister, the Super Highway, one of the four (4) Legacy Projects of the Federal Government, will pass through several states, including Sokoto, Kebbi, Niger, Kwara, Ogun, Oyo, and Lagos with 125 kilometres to be constructed within Niger State. Umahi underscores the project’s potential to enhance infrastructure development and stimulate socio-economic activities along its corridor, bringing direct benefits to local residents, as well as businesses. "Niger State, with its extensive network of Federal roads, faces numerous challenges due to their poor conditions. Many of these road projects, some dating back to 2010, remain uncompleted. For example, the Dualisation of Suleja - Minna Road remains unfinished since being awarded in 2010 and the Bida - Lapai - Lambata Road is at 64% completion despite being awarded over a decade ago. Quality infrastructure and timely project completion are priorities for both state and federal stakeholders," he declared. The Minister further highlighted the importance of the Stakeholders’ Engagement, which focuses on issues concerning the 125-kilometre Niger State alignment of the Sokoto - Badagry Superhighway. He announced that decisive actions would be taken against contractors handling ongoing road projects in Niger State, while inviting them to a crucial meeting at the Ministry, Headquarters on Friday, 15th November, 2024. Engr. Umahi expressed disappointment with the Minna - Suleja road's current state, describing it as an eyesore and very discouraging. He further lamented that despite bogus claim of 84% completion, the company has been collecting Federal funds for over 14 years without commensurate work on the project. The Minister also stated that President Tinubu's administration prioritises investments aimed at stimulating growth across multiple sectors of our national life. He revealed that the present administration inherited 2,604 projects, soliciting for National Assembly's support in securing special intervention funds to complete them, as well as other new projects. He pleaded with Nigerians to remain patient and supportive of the President's effort towards improving their wellbeing. He further explained that the Renewed Hope Administration’s shift from asphaltic to concrete pavement, in road construction, is informed by its cost effectiveness (in the long run) and sustainability due to the use of locally sourced materials. Earlier, the State Governor, H.E. Mohammed Umar Bago called on the Federal Government to revoke the Suleja-Minna road contract due, majorly, to lack of capacity exhibited by the contractor, Messrs Stabilini (Nig.) Ltd. Instead, H.E. Bago recommended that contractors with proven capabilities in delivering quality works be engaged to complete the lingering project. The Governor assured his Guest of the state’s support for President Bola Tinibu's administration, emphasising the need for engaging reliable contractors to ensure quality and timely completion of projects. He also unveiled plans to establish a cement factory in Niger State, leveraging the state's abundant raw materials, in order to cash in on the use of concrete pavement in the construction of the new alignment. In his Remarks, the Permanent Secretary, Federal Ministry Of Works, Yakubu Adam Kofarmata, Ph.D emphasises the need for stakeholders in the state to join hands with the Federal Government by supporting the Renewed Agenda, as Mr. President has done well in the development of the State and he will continue to champion infrastructural development. He assured the good people of the state and the nation, at large, that Mr President has not neglected the Northern part of the country, in whatever guise. Representing the Chairman, Senate Committee on Works, its Vice Chairman, Sen. Rufa'i Hanga praised President Tinubu’s vision and foresight stating that the project, when completed, would boost productivity, commerce and socio-economic growth. The House Committee Chairman on Works, Hon. Akin Alabi called for the declaration of a “state of emergency” on Niger’s Federal roads, advising the Minister to engage an independent consultant to assess all ongoing road and bridge projects, nationwide. Furthermore, various Stakeholders, who spoke on behalf of the various communities affected by the Sokoto -Badagry road project, called on the Federal Government to ensure that commensurate compensation is paid to the affected people, while pledging their support to the successful execution of the project. The Etsu Nupe and Chairman, Niger State Council of Traditional Rulers, His Royal Highness, Dr. Yahaya Abubakar, represented by the Emir of Kontagora, Alhaji Mu'azu Barau II, also applauded the President's focus on infrastructure development and begged for the Federal Government’s intervention in rehabilitating additional roads within the State. The Senator representing Niger East, Senator Sani Musa commended Mr. President and Governor Bago’s infrastructure drive, also requested that critical projects such as the Zungeru Bridge, Tegina - Birnin Gwari - Kaduna and Sarkin Pawa - Kaduna roads be given priority attention. He further urged the Federal Government to declare a “state of emergency” on Niger state’s dilapidated roads. The Speaker, Niger State House of Assembly, Rt. Hon. (Barr.) Abdulmalik Muhammed, commended Mr President and Governor Bago's determination to transform the country and state, respectively. ...

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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