Federal Ministry of Works

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Minister Federal Ministry Of Works Engr. David Umahi.

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Mar

2025

LATEST PRESS

FG Flags Off Access Road to Second Niger Bridge (Phase 2A), Reinforces Commitment to Infrastructure Development

The Federal Government through the Federal Ministry of Works has officially flagged off the Construction of a 17.55-Kilometre Access Road to the Second Niger Bridge (Phase 2A) in Asaba, linking the South South Zone to the South East. This milestone event underscores the administration’s unwavering dedication to enhancing national road infrastructure and fostering economic growth.

Speaking at the ceremony, the Honourable Minister of Works Engr (Sen) David Umahi CON, FNSE, FNATE lauded the host State Government for its commitment to infrastructure development, emphasising that governance is about improving the lives of the people. He commended the Edo State Governor’s proactive approach to addressing road infrastructure needs, acknowledging the numerous ongoing projects, including three major flyovers in Warri town. "Your state is a construction site. You have demonstrated that leadership is about responsibility, not excuses. Instead of blaming the Federal government, you are taking proactive actions. That is highly commendable," he stated.

Engr. Umahi further highlighted the Federal Government’s broader vision for road infrastructure, revealing that multiple strategic road projects are either ongoing or in the pipeline, nationwide. These include the Lagos-Ibadan Expressway, the Benin-Asaba Expressway, the Sokoto-Gusau-Katsina-Kaduna corridor, the East-West Road, the remaining section of Abuja-Kaduna-Zaria-Kano Dual Carriageway, amongst others. He assured that the 9-kilometre extension of the just-flagged off Reconstruction of the Benin-Asaba Expressway to the 2nd Niger Bridge requested by the State Government has been approved.

To ensure the security and sustainability of the newly constructed roads and bridges, the Government has implemented advanced surveillance measures, including the installation of CCTV cameras along the Access Roads and the Bridge. These cameras will be linked to the offices of the Governors of the concerned States to monitor activities and prevent vandalism. Additionally, the project will incorporate solar-powered streetlights to enhance visibility and security.

The Minister reiterated the administration’s commitment to prioritising inherited projects and delivering impactful infrastructure to Nigerians. He emphasized that under President Tinubu's Renewed Hope Agenda, road projects nationwide are receiving unprecedented attention, ensuring seamless connectivity and economic progress.

"All major road projects inherited by Mr. President are ongoing. He has given them priority attention. This administration believes in continuity and results, not political excuses," he stressed.
The project, he continued, is part of a broader national infrastructure strategy aimed at connecting key economic zones and improving transportation efficiency. The government has assured that funding is secured, with 30% of the contract sum ready to be paid, while strict timelines and performance monitoring will be enforced to ensure timely delivery.

The Delta State Governor, Rt. Hon Sheriff Francis Oborevwori, while acknowledging the presence of dignitaries at the occasion, stated “It is an honor and privilege to stand before you today, representing His Excellency, Senator Bola Ahmed Tinubu, GCFR the President of the Federal Republic of Nigeria. This occasion is not just about flagging off a road project—it is a testament to this administration’s unwavering commitment to economic development, national integration, and infrastructure renewal.

“The construction of the Access Road is a major step towards strengthening our nation’s connectivity. This road will ease movement, facilitate trade, and enhance economic opportunities for the people of Delta, Anambra, and beyond. It is yet another proof that under this administration, infrastructure development remains a top priority for fostering economic growth and national unity. I want to, especially, commend the government and people of Delta and Anambra States for their collaboration in ensuring the success of this project. Your support and cooperation are crucial in making this vision a reality. Infrastructure development is not just the responsibility of the Federal Government requires the collective effort of all stakeholders, including the State Governments, Local Communities, and Private Sector Partners,” says the President.

The Governor added “To our esteemed contractors, I urge you to ensure the highest standards of quality and timely completion of this project. This is not just a road; it is a legacy of progress that will serve generations to come.”

He extended his gratitude to all present-the traditional rulers, community leaders, and all who have contributed in one way or another to the realisation of the initiative. “Your support and dedication to the success of this project reflect our shared commitment to building a better, more connected Nigeria.
As we look forward to its completion, let us all continue to work together for the development of our great nation,” Governor Oborevwori concluded.

Feb

2025

Over 35,000 Kilometres of Federal Roads Need Alternative Funding - Goronyo The Minister of State for Works, Muhammad Bello Goronyo, Esq has noted that over 35,000 kilometres of the Federal Government road network across Nigeria could not be funded through Annual Budgets alone, hence the need to source for alternative funding outside the government’s coffers. Goronyo stated this on Monday, 17th February, 2025, while addressing the Management and Staff of the Federal Roads Maintenance Agency (FERMA), Kogi State Field Office at Lokoja during a maiden visit alongside the MD/CEO, Engr Chukwumeka Agbasi. He reaffirmed that President Bola Ahmed Tinubu’s administration is determined to fix all the roads to ensure a drastic reduction in the level of unemployment, rate of crimes, and insecurity. According to him, " Let me commend President Tinubu, GCFR for his determination. I have never seen a President so committed to sustaining physical assets nationwide. The administration gives priority to various road projects scattered across the country. This shows that he is a patriotic Nigerian. He is undertaking these projects so that our economy can be improved, and the rate of unemployment, poverty, and crimes will be reduced. We are seeing the Super Highways from Ilelah to Sokoto to Badagry and another from Lagos to Calabar." Goronyo, who commended the staff of FERMA for their resilience and hard work over the years, noted that despite insecurity, and inadequate funding, Nigerians have been commending them for their excellent work. He urged them to bear with the Ministry of Works over their entitlements, disclosing that their requests for adjustment and increment in consequential salaries have been forwarded to the Salaries, Income, and Wages Commission for consideration and approval. Speaking further on funding for the maintenance of roads, Goronyo stressed that "about 35,000 kilometres of roads cannot be funded and maintained overnight. We have to look for alternative sources of funding so that we can continue to maintain our physical assets, which are the roads. We have to create new ways of funding and new alternatives. He assured that the Government is focused on ensuring that projects are completed in a timely and efficient manner with robust oversight and contractors’ compliance. He also added "I am calling on all of you to support us to ensure that President Bola Ahmed Tinubu succeeds in his mandate to deliver on the 8-point Renewed Hope Agenda. We must put Nigeria first before our interests. Let us fix our roads, we must think positively." Earlier, the Managing Director and Chief Executive Officer (MD/CEO) of FERMA, Engineer Chukwumeka Agbasi commended the Ministry of Works for its determination to ensure that the 8-point agenda of President Tinubu are realised, especially road projects across the country. He informed the Staff that before the end of the year, there would be an increment in their salaries and appealed to them to continue to support and partner with the Ministry to achieve their targeted goals. In his remarks, Engineer Muktar Abdurahim, the Officer in charge of the Kogi Field Office, informed the Minister that the office has thirty-seven (37) staff with 25 permanent and twelve (12) casual workers. He disclosed that Kogi State has sixteen (16) Federal Government roads with a total of 1,263 kilometres, emphasising that the 2024 nationwide flood incident did not affect any of the roads in the state. Engr. Abdulrahim revealed that out of six (6) roads under construction in the state, five (5) have been successfully executed, while one (1) is at 60% completion. He informed the Minister that they are facing challenges such as insecurity, and hyperinflation on the cost of construction materials, amongst others. Furthermore, the Director, North Central Zone I, Engr Omotayo Awodun commended the Federal Government’s commitment to fixing all the Federal roads across Nigeria, especially those in his zone, he also applauded the leadership style of the Honourable Minister of Works for his innovation, where new techniques and stricter supervision are being enforced, like what we are witnessing, today. ...

Jan

2025

INFOQUEST NIG LTD WAS NEVER AWARDED ANY CONTRACT ON ABUJA- KADUNA ROAD AS FALSELY AND MALICIOUSLY REPORTED IN A PUBLICATION OF DAILY TRUST NEWSPAPERS OF 21/01/2025. -DAILY TRUST TO RENDER UNRESERVED APOLOGY TO FEDERAL MINISTRY OF WORKS FOR UNJUSTIFIABLE FALSEHOOD The Honourable Minister of Works, His Excellency, Sen. Nweze David Umahi CON has rebutted in strong terms the unwarranted, false, misleading, and damaging report published in Daily Trust Newspapers of 21st January 2025, which falsely represented the Federal Ministry of Works as having awarded a section of Abuja-Kaduna-Kano road dualization to Infoquest Nigeria Ltd. In a press conference held on 21st January 2025 at the Conference Hall of the Honourable Minister of Works and attended by the Honourable Minister of State for Works, Rt. Hon. Barr. Mohammed Bello Goronyo, the Permanent Secretary, Federal Ministry of Works, Engr. Folunso O. Adebiyi and key directors of the Ministry, the Honourable Minister, described as mischievous, insensitively misleading and injurious the statement credited to him in the said publication, where he was wrongly quoted to have said that Infoquest Nigeria Ltd secured a "No objection" of N252.89 billion from the Bureau of Public Procurement ( BPP) for the rehabilitation of a section Abuja- Kaduna- Zaria-Kano road and where they described the Ministry as having awarded the said contract to an obscure company. He made it clear that the Ministry had no business relationship with Infoquest Nigeria Ltd. He further made it known that the company that has a contractual relationship with the Ministry on the said project is Infiouest International Limited and that the company is corporately active and is absolutely in compliance with all legal requirements and regulations set by the Companies and Allied Matters Act. He berated the mischief created by the publication as a deliberate orchestration by a cartel to malign the Ministry, undermine the efforts of the Renewed Hope administration in revolutionizing road infrastructure development and demarket the company that has proven capacity in road construction. He demanded from Daily Trust Newspapers a public apology to the Federal Ministry of Works to be published in at least 5 national dailies for unjustifiably publishing falsehood against the Ministry of Works. The Honourable Minister also alluded to the mischiefs and deliberate misrepresentation of facts contained in the sponsored publications made in several national dailies by Julius Berger Plc recently on the reason why they reneged in their contractual obligations in respect of the section of Abuja-Kaduna-Zaria-Kano road they were handling before it was determined. He wondered why the coordinated onslaught of falsehood, blackmail, gangup by adversaries to the policy of government just because of the Ministry's insistence on a new order of value for money, quality assurance and best practices in project pricing and execution. He urged the public and the press to join in this desirable fight against national sabotage by some contractors. In his remarks, the Honourable Minister of State for Works said he was delighted by the proactiveness and resoluteness shown by the Ministry in decapitating the intentions of those who made the false publication against the Ministry which according to him was intended to distract the Ministry and undermine its confidence before Nigerians. He called on the media operators not to allow themselves to be used by the fifth columnists to publish unfounded reports to undermine the Renewed Hope agenda but should always crosscheck their information with the appropriate authority so as to let out only the truth to the public. In his vote of thanks, the Permanent Secretary described the press briefing as thoughtful and timely. He harped on the importance of development journalism and urged the media to always uphold the truth in their professional duties of information dissemination rather than allow themselves to be used as a tool in the hands of enemies of our national development. ...

Jan

2025

EIGHT-POINT AGENDA OF MR. PRESIDENT LINKED TO GOOD ROAD INFRASTRUCTURE - Umahi The Honourable Minister of Work, His Excellency, Sen. (Engr.) David Nweze Umahi, CON, FNSE, FNTI has reiterated that the availability of good road network is instrumental to achieving food security, ending poverty, improving security, enhancing economic growth and job creation. He affirmed this, while opening a two-day retreat organised for Highways Engineers and management staff of the Ministry with the theme, “Ensuring Delivery of Mr. President’s Agenda on Road Infrastructural Development” on 17th January, 2025 in Abuja. According to Engr. Umahi, the massive infrastructural development embarked upon by the present Administration across the entire six (6) geo-political zones of the country is premised on stimulating the economy and improving the lives of the citizenry. He re-affirmed the present administration's commitment towards the reconstruction and rehabilitation of failing major highways across the zones, which will provide robust road infrastructure, as well as alleviate the sufferings of the citizens. He also added that the retreat, which is aimed at enhancing optimum service delivery, efficiency, and unity in the delivery of road projects, nationwide, is expected to help participants ensure that the government gets value for money expended on all projects. While urging participants, especially the Ministry’s supervisory staff, to make the best use of the retreat to sharpen and improve their technical capabilities, he expressed optimism that they would acquire enough resources to help in delivering Mr. President's 8-point agenda. The Minister, who earlier maintained that bad roads are tantamount to keeping people in prison, as it hinders their movement, also called on Highway Engineers to change their _modus operandi _and work professionally, imbibing internationally recommended engineering standards and practices, to achieve the objectives of the Renewed Hope Agenda of Mr. President. He directed that henceforth, contractors must mobilise to the site before requesting for mobilisation fee. Acknowledging the need for continuous capacity building for Engineers, as an enabler for improvement in service delivery, he promised that such exercises would be institutionalised. He, as well, directed all Federal Controllers of Works (FCW) to dismantle all speed calming devices/measures (speed breakers or bumps) on Federal highways in their respective states, insisting that there is nothing wrong in mounting such bumps but there should be approval and standard design and specifications guiding such endeavours. In his Goodwill Message, the Permanent Secretary, Federal Ministry of Works, Engr. Olufunsho Adebiyi, FNSE thanked and welcomed the Honourable Ministers for approving, as well as gracing the occasion. He called for rapid transformation in service delivery in the road sector. The Permanent Secretary, however, formally presented to the Honourable Ministers, a team of transformed Engineers, who are willing to support the government achieve its Renewed Hope Agenda. The Honourable Minister of State for Works, Muhammadu Bello Goronyo, Esq., eulogised the personality of the Minister, whom he revered and referred to as a go-getter, intelligent, hardworking and highly professional. He expressed gratitude to all stakeholder for their collaborative efforts in ensuring the success of the present administration, particularly in the provision of critical road infrastructure. The Chairman of the House Committee on Works, Hon, Akin Alabi enjoins the Ministry to put in more effort, so that our roads work for the citizens, while the Chairman, Senate Committee on Works, Sen. Mpigi Barinada, called on the need to engage the members of the National Assembly (NASS) to ascertain that correct appropriation is made to accommodate all Nigerian roads. He concluded by saying that the good works of the Ministry are an indication of support for Mr. President’s Agenda. The retreat was facilitated by a panel of experts delivering insightful presentations on critical topics. The panelists included the Permanent Secretary of the Ministry, the Director, Highways, Construction and Rehabilitation, Engr. Clement Ogbuagu, representative of the Chairman, Economic and Financial Crimes Commission (EFCC), Mr. Francis Useni, the Chairman of the FCT Civil Service Commission, Engr. Emeka Eze and retired directors from the Ministry such as Engineers Bala Danshehu, Bola Aganaba, J. A. Yusuf, A. A. Adebiyi and Olufemi Oyekanmi. Their Sessions covered Compliance with Procurement Laws, Prudent Use of Resources, Project Planning and Alignment with President Tinubu’s Eight-Point agenda. Discussions were centred on the composition of the Site Management Team; Project Planning; Resolving Bill 1; Direct Labour Policy; Inter Relationship between Engineers; Adherence to the Rules of Law and lastly, Funding of Projects. It was agreed that the Ministry should return to its original structure; waiver for recruitment of young Engineers is to be pursued to bridge the gap of shortage of staff; there is no free money in Bill 1 anymore; the issue of direct labour was stepped down, as extant laws do not support it, more so, to avoid conflict of interest with the Federal Emergency Road Management Agency (FERMA). It was rather agreed that FERMA should be strengthened to effectively carry out its mandates. The Ministry was advised to lobby for the establishment of a Federal Highways Authority; Participants were admonished to eskew backbiting and learn to bond with each other, as well as to forgive one another. As takeaways from the Retreat, participants were asked to reduce the use of emergency contracts; publish all contracts on the Ministry’s websites, including the names of the contractors, and value for money expended on every project; ensure that effective from 2025, categorisation of contractors will start and no longer portfolio or envelop contractors. To avoid unnecessary embarrassment, Officers need to apply extant rules in discharging their duties. The year 2025, being a year for enhanced performance for Mr. President, priority projects will be tracked by the second quarter of 2026, which should be ready for commissioning. Participants also were urged to ensure that Nigeria roads are motorable, especially that of Abuja - Kaduna, a vital artery linking the South to the North of the country. Civil Servants were, as well as urged to guide and support politicians in performing their jobs. ...

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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