Federal Ministry of Works

Federal Ministry of Works (FMW)

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Minister Federal Ministry Of Works Engr. David Umahi.

Road Construction Inspection Tour.

Road Inspection.

Road Construction Inspection Tour.

Road Inspection.

Road Construction Inspection Tour.

Jun

2025

LATEST PRESS

STAKEHOLDERS UNITE TO INSPECT ABUJA–KADUNA AND SULEJA– MINNA DUAL CARRIAGEWAYS
-Declare Minna Road, an Emergency Project

The Honourable Minister of Works, Engr. David Umahi, CON, FNATE, FNSE; the Deputy Chief Whip of the 10th Senate, Sen. (Barr.) Onyekachi Nwaebonyi; the Honourable Minister of State for Works, Hon. Muhammad Bello Goronyo, Esq.; PDP Chieftain, Otunba Segun Showunmi, among others Saturday, 28th June 2025, led a high-level inspection of the ongoing reconstruction of the Abuja–Kaduna–Minna dual carriageway, reaffirming the government’s commitment to transparency, engineering excellence, and sustainable infrastructure development.

In his remarks, Engr. Umahi disclosed that over 11 kilometres of Section 1 have already been reconstructed using 200 mm reinforced concrete with a projected lifespan of 100 years. The construction process, which involves pulverising failed pavement, laying an 80 mm cement-stabilised stone base, and installing Y20 steel reinforcements at 20 cm intervals beneath a 60 mm concrete top, matches the quality standards adopted for the Lagos–Calabar Coastal Highway and the Sokoto–Badagry Road. The Minister noted that the momentum gained on the Abuja–Kaduna project had gained added momentum followed by the inquisition which brought about this transparent site engagement.

The Minister also expressed gratitude to President Bola Ahmed Tinubu, GCFR, for his unwavering support following the termination of the previous contract with Julius Berger over cost discrepancies. “Without Mr. President’s support, it would have been difficult to redeem the project's integrity. But with the quality of work being delivered by Infoquest, today both the Ministry’s and my integrity are restored,” he said. Section 1 (118 km) is valued at ₦252 billion, while Section 2 (164 km), awarded at ₦525 billion, is progressing steadily across three subsections.

In parallel with this progress, the Ministry addressed concerns over the Dualization of the Suleja–Minna Road (Phase 1) in Niger State, under Contract No. 6077 with Messrs Salini Nigeria Ltd. The project, covering 40 km from Diko Junction to Bonu village, includes 2 twin flyovers and 3 river bridges. Despite notable achievements—such as 36.89 km of sub-base, stone base, binder course, and wearing course already laid; construction of all 3 bridges up to transition slab level; and extensive culvert installations—the project has faced setbacks, including delayed payments and insecurity. As of the latest assessment, the project is 86.33% complete based on the original contract sum but stands at only 30.03% relative to the revised sum of ₦26.7 billion. The Honourable Minister has reaffirmed the Ministry’s position on accountability and directed that Salini be held responsible for any contractual lapses. Where necessary, portions of the outstanding works equal to the value owed by the contractor will be scoped out for direct execution under close supervision.

Inspecting Sections I and II, Umahi decried the aged-long-neglect of the construction work by the contractor- Salini Nig. Ltd, which has left the site for the past 18 months without completing the contract. He also noted that the areas the Contractor claimed to have done have become dilapidated. He, however, called for the termination of the Messrs. Salini Nig. Ltd’s contract of sections I and II with immediate effect while declaring the project an emergency project to be handled under emergency procurement processes and taken over by CCECC and CGC companies. He also directed a-24 24-hour documentary on the road, especially the failed areas.
“The project has been irrevocably terminated and Nigerians will see why we terminated it. If they (Salini) do not do what we have directed them to do, what they owe us under our supervision, we are all going to the EFCC to take it over”
“We are documenting the current condition of the road for public accountability. Once work is completed, people tend to forget how bad it was. Information Department must keep a visual record to justify our emergency action”.
Reiterating that the Suleja-Minna road is now a top priority, and every effort is being made to ensure timely and quality delivery in line with President Tinubu's Renewed Hope Agenda, Engr. Umahi reassured travellers of their safety with the incorporation of safety and security infrastructure into the road design, including solar-powered lighting, CCTV surveillance, and a rapid-response system that guarantees intervention from security agencies within 10 minutes of any incident. Kilometre 71 and other active segments are already being secured during the construction phase. This is to ensure traveler safety and long-term durability.

The Minister restated the Ministry’s openness to scrutiny and partnerships. “Where we have done well, let Nigerians see it. Where we must do better, tell us—and we will act.”

Minister of State, Hon. Bello M. Goronyo, praised the cross-sectoral nature of the inspection, noting that it marked a shift from armchair criticism to informed civic engagement. He lauded Showunmi’s patriotism and willingness to scrutinize national progress with sincerity, stating that real transformation must be driven by both resource allocation and unwavering commitment.

Also present at the inspection, Barr. Onyekachi Nwaebonyi, Deputy Chief Whip of the 10th Senate and member of the Committee of Works commended the scale and engineering quality of the project, affirming the Senate’s continued commitment to funding and legislative backing for infrastructure that enhances trade, national cohesion, and safety.

Segun Showunmi, a well-known national voice on governance, whose concerns over delayed infrastructure projects prompted the engagement, applauded the Ministry’s openness. “I dropped everything to be here because our national integrity matters. This isn’t personal interests or affiliations; it’s about shared responsibility,” he remarked. While commending the quality of work, he maintained that his endorsement was based strictly on performance and would not be extended as a blanket approval to the broader administration. He further noted that public figures owe the nation constructive criticism and not endless cynicism, and that holding leadership accountable is of utmost importance as it helps in building the nation. “We’ve seen progress, and like Oliver Twist, we ask for more. Let this be the new standard—less noise, more delivery,” he concluded.

May

2025

FEDERAL GOVERNMENT COMMENDS PROGRESS ON ABUJA-KADUNA ROAD, SECTION I, PHASE 1 The Honourable Minister of State for Works, Bello Muhammad Goronyo, Esq., expressed his satisfaction with the progress and quality of work on the Abuja-Kaduna-Kano Road (Zuba Section). He commended the contractor, Messrs Infiouest (Nig.) Limited for its professionalism and alignment with President Bola Ahmed Tinubu's Renewed Hope Agenda. During an inspection tour, the Minister announced that approximately six (6) kilometres-three (3) kilometres on each side had already been completed using reinforced rigid concrete pavement. “The quality of work delivered so far reflects the President’s unwavering commitment to national development through robust infrastructure,” he stated. He praised the dedication of the workforce and the use of modern equipment, saying, “The commitment of the workers is commendable. I salute their resilience and their support for Mr. President's vision. “The Minister emphasized that once completed, the road will reduce travel time, improve safety, curb insecurity, enhance trade, and create employment opportunities. Regarding the quality of construction materials, the Minister remarked, “What we are seeing here is superb. The reinforced rigid pavement is expected to last 50 to 100 years superior to conventional asphalt.” Mr. Robert Turner, the Project Manager and Representative of the construction company reaffirmed its commitment to delivering a world-class project. “There are no shortcuts. We are giving our very best to achieve the project’s goals,” he stated. Turner highlighted that the team operates daily from 6:00 a.m. to as late as 9:00 p.m., constrained only by security concerns along the corridor. “We have a spirited and dedicated team. Despite challenges, we are fully focused on delivering this critical project within record time,” he added. Earlier in his remarks, the Permanent Secretary of the Federal Ministry of Works, Engr. Olufunsho O. Adebiyi, emphasised the strategic importance of adopting rigid pavement technology, especially given Nigeria’s soil composition, water table level, and high axle loads. “Rigid pavement is new to Nigeria, but it has become necessary due to the consistent failure of flexible pavements under our local conditions,” he explained. He cited previous challenges with bitumen and cement interactions that compromise flexible pavements, particularly in high-traffic corridors like the Apapa-Oworonshoki Expressway in Lagos state. “This new method, reinforced with Y20 steel bars at 200mm centres, is stronger than most bridge decks,” he noted. Adding that “It is a sustainable solution that will outlast many of us and withstand the test of time.” Engr. Adebiyi urged road users to be patient during the construction period, assuring them that the phased opening of completed sections will help minimize disruptions. “We understand the temporary discomfort, but in the end, this road will significantly improve lives and the economy.” The Zuba section of the Abuja-Kaduna-Kano road remains a critical link in Nigeria’s transport network, and the Federal Government has reaffirmed its determination to ensure its successful and timely delivery. ...

Apr

2025

REVVING UP PROGRESS: HISTORIC FLAG-OFF OF LAGOS–CALABAR COASTAL HIGHWAY IN CROSS RIVER STATE The Honourable Minister of Works, His Excellency, Senator David Umahi Nweze, CON, FNSE, FNATE, on behalf of the Federal Government has officially launched Sections 3A & 3B of the Lagos–Calabar Coastal Highway in Cross River State on Monday, April 14th, 2025. The event which was held in Calabar, marks the beginning of a monumental infrastructure project aimed at connecting eight coastal states across Nigeria. In his speech, the Honourable Minister highlighted the project's groundbreaking nature, describing the Lagos–Calabar Coastal Highway as not just another road but a symbol of progress for Nigeria. Engr. Dr. Umahi reaffirmed the federal government’s commitment to completing the highway on schedule, with the project set to boost trade, tourism, and economic growth in the affected regions. He also reiterated President Bola Ahmed Tinubu's dedication to fulfilling his promises on infrastructure development. Senator Umahi praised Hitech Construction Ltd. for their outstanding work and for their partnership in delivering this significant project that will benefit not only Calabar but the entire nation. Governor Prince Bassey Otu, representing President Bola Tinubu, GCFR, spoke passionately about the historical importance of the project. He expressed deep gratitude to the federal government for initiating such a transformative project in an area long deprived of modern infrastructure. Governor Otu emphasized that the completion of the road would improve connectivity and open up significant economic opportunities for Cross River State, fostering long-term growth and development. Bello M. Goronyo, Esq. Honourable Minister of State for Works, who was also in attendance, spoke about the fulfillment of promises made during President Tinubu’s campaign, noting the critical infrastructure needs of underserved regions. He expressed gratitude for the continued support from local communities and emphasized the collaborative efforts between the federal and state governments in achieving national progress. Mr. Danny Aboud of Hitech Construction Ltd., the project contractor, assured attendees of the company’s commitment to delivering a high-quality road. He discussed the use of innovative concrete pavement technology that will ensure the durability and longevity of the highway. Aboud also emphasized the significance of engaging local Labour and businesses, contributing to regional socio-economic development and job creation. In his goodwill message, Engr. Pius Edet Ankpo, Commissioner for Works and Infrastructure in Cross River State, expressed sincere gratitude to the Federal Government for initiating the project. He praised President Bola Tinubu’s visionary leadership and acknowledged the historic nature of constructing a road through forested terrain. Ankpo also advocated for the reinitiation of other key federal road projects in the state, such as the Ikom–Odukpani Junction and Calabar–Itu road, which have faced delays. He urged the Federal Government to prioritize these projects to ensure ongoing development in Cross River State. Mr. Asuquo Ukpanyang, the Youth Liaison Officer for the state, conveyed the excitement and anticipation of local communities regarding the project. He emphasized that it would not only create jobs but also drive economic participation, improving residents' standards of living. Ukpanyang stressed the importance of involving local populations to ensure the project’s success. Prominent figures such as Prof. Eyo Etim Nyong, an Elder Statesman, and Senator Eteng Williams, representing Cross River Central, also delivered powerful goodwill messages. Both leaders expressed profound gratitude to the Federal Government and shared how the hopes of Cross Riverians are being renewed through this project. They pledged strong support for the initiative, recognizing its transformative potential for the region. Prof. Nyong commended the Federal Government’s commitment to lasting development in the South-South, while Senator Williams highlighted the project’s role in unlocking new trade and economic opportunities for Cross River State and neighboring regions. Additional goodwill messages were delivered by Former Senator Ita Giwa and Hon. Gift Johnbull, SSA to the President on Committee Engagement. Senator Giwa praised the federal government for spearheading the Lagos–Calabar Coastal Highway, noting its potential to create new economic opportunities. Hon. Johnbull echoed these sentiments, emphasizing the broader importance of the project in line with President Tinubu’s ongoing commitment to nationwide infrastructure development. Engr. Olufunsho Adebiyi, Permanent Secretary of the Ministry of Works, also addressed the audience. He expressed full confidence in the project’s success and reaffirmed the federal government’s commitment to ensuring the Lagos–Calabar Coastal Highway is completed to the highest standards, benefiting not only Cross River State but the entire nation. His remarks reinforced the Ministry of Works’ dedication to providing the necessary oversight and support for the project’s successful execution. The launch of Sections 3A & 3B of the Lagos–Calabar Coastal Highway signals a transformative infrastructure project that will greatly enhance the lives of Nigerians, particularly in the South-South region. With the combined efforts of the Federal Government, state authorities, contractors, and local communities, the successful completion of this critical initiative is assured. The project is set to be a key driver of Nigeria’s long-term economic growth, marking a significant milestone in the nation’s infrastructure development. ...

Apr

2025

WORKS MINISTER, SEN UMAHI ASSESSES STRUCTURAL INTEGRITY OF THE UNDERWATER ELEMENTS OF BRIDGES THAT LINK LAGOS ISLAND TO MAINLAND -- Federal Controller of Works Lagos Absolved of Professional Negligence, Resumes Work as Investigation Reveals the Closure of Independence Bridge Lagos Was an Honest Mistake The Honourable Minister of Works, His Excellency, Sen Engr Nweze David Umahi CON has inspected the substructure and other underwater elements of Third Mainland bridge, Eko bridge, Carter bridge and Independence bridge to assess the structural integrity of some of the structures as well as appraise the progress of work on the bridge elements whose maintenance has been generously commenced by the Renewed Hope administration of the President of the Federal Republic of Nigeria, His Excellency, Bola Ahmed Tinubu GCFR. In his press briefing after the inspection visit to the four bridges on 5th April 2025, the Honourable Minister of Works, expressed satisfaction with the quality and speed of underwater works done on the 3rd Mainland bridge and Carter bridge handled by Julius Berger Plc as well as Eko bridge and Independence bridge handled by Buildwell Nig Ltd. He commended the contractors for the milestone completion recorded by them but frowned at the continued tampering of the underwater piers and pile caps of the bridges by people despite warnings. He made particular reference to the most recent case of a ship that capsized at Eko bridge waterway, hit and destroyed the underwater pier and pile cap of the bridge, thereby causing a big threat to the structure of the bridge. He also made mention of unlawful dredging going on in the waterways of 3rd Mainland bridge where the dredger destroyed the pile cap of the bridge. "We have inspected the 3rd Mainland Bridge and Carter Bridge handled by Julius Berger to know what is happening below the deck, and we are satisfied with the work they're doing. I can say that the work on the 3rd Mainland Bridge is about 50 percent completed, and that of Carter Bridge is about 70 percent completed. We didn't visit Iddo Bridge because it's a small work, and it's not as dangerous as what is happening under the deck of Third Mainland Bridge and Carter Bridge. Part of Julius Berger's work is to reinstate the deflected slab in the 3rd Mainland bridge. We don't have deflection in Carter bridge and this is the reason why we closed the 3rd Mainland bridge against big trucks, and so they ( contractors) are insisting that they have a new design to tackle that because it's a very delicate work and they want our designers to go with them to Germany and look at the new design and then give approval, and so I've approved for that to happen." Underscoring the importance of the underwater elements to the substructure of a bridge, the Honourable Minister explained, "The pile caps are like the legs to human beings. What the pile cap and the pies are to the bridges are what the legs are to human beings. So imagine a vehicle hitting one of your legs." Narrating what happened during his inspection to the bridge, he said, "And so I immediately directed divers to be deployed, and I went to the smaller boat to monitor the level of damages below the water, occasioned by this dredger that hit the pile. And I was very shocked. A whole one pile was totally removed. And what is holding that particular section is only the rods. So, some of the rods are removed. So it's like a whole leg of somebody is cut off." He appealed to the Governor of Lagos State to consider the need to shut down the waterways between the Carter bridge and Eko bridge because of the risk occasioned by the impact of the capsized to underwater elements. "Let me appeal to the Governor of Lagos State to please enforce that the waterways between Carter Bridge and the Eko Bridge be closed because the dredger that hit the pile caps and the piles tumbled and they got sunk. So what is safe is for that section of the waterways to be closed down. And so I'm alerting all the authorities of the Navy, the Lagos State government, they have always been very proactive. This section of the waterway needs to be closed down immediately." He emphasized the danger of dredging sand along the bridge areas. He said, "The dredging of sand along seas and rivers is very dangerous because all the piles in Lagos State were executed through skin friction, which means that it is the sand that is holding the piles and holding the bridge. At the Third Mainland Bridge, we have installed a camera to observe what is going on top and also under the bridge. And so we're going to be looking at that for the bridges in Lagos even though it's quite a lot of cost. The Honourable Minister, who also visited the ongoing construction of Section I of Lagos-Calabar Coastal Highway project by Hitech Construction Company Ltd, was full of joy for the quality and level of work the contractor has attained. Speaking at Chainage 13, where shore protection was being considered to be done, he said the President's bold decision to invest on infrastructure at this time of economic challenges, shows his practical political will to transform economic limitations to possibilities. The Honourable Minister highlighted the great investment and tourism opportunities that would be generated upon the completion of sections of Lagos-Calabar Coastal Highway. He said, "And, of course, we also have foreign investment in this, because 70% of this project is dollar-based, on loan as low as 2.5% single digit interest. And so, what is the problem if I can recover this money in 10 years? We're going to have a relief station along the corridor where we will have supermarkets, small clinic, towing vans, parking lots for cars and trucks and so on and so forth. We are going to have trees all through the route and, of course, solar lights and CCTV cameras. So, it's going to be a sight to behold. I want Nigerians to be very clear that the President is replicating what you see in the Western world, and people are saying don't do it." He urged Nigerians to keep faith with the vision underpinning the Renewed Hope agenda on road development, noting that where an individual's land is affected by the ongoing road infrastructure revolution, it is for the overriding public interest. He described as misleading and fictitious, the claim by one Mrs Ifeoma that she invested over $215m on her land on the right of way at Chainage 18 of Lagos-Calabar Coastal Highway and urged those darkening counsel without knowledge to visit the location and see that no single structure was built there except a gate which has been removed to give way for construction work. Meanwhile, the Honourable Minister of Works has absolved the Federal Controller of Works, Engr. Olukorede Keisha of any negligence in her duty, noting that the findings of the Federal Ministry of Works revealed that the error in the procedure for the closing of Independence bridge, Lagos that caused the regrettable grid lock was an honest mistake, but with an intention to save lives. He has directed the Federal Controller of Works to resume work with immediate effect. ...

PUBLIC ANNOUNCEMENT

Jul

2024

OTHER NEWS

Jan

2024

New Permanent Secretary Works Yakubu Kofarmata Assures of Innovation to Achieving Renewed Hope Agenda

The newly deployed Permanent Secretary to the Ministry of Works has given assurance that subsequent new innovations in the Ministry shall be geared towards achieving Mr. President's Renewed Hope Agenda in infrastructural development, especially in road construction and rehabilitation for ease of doing business in all sector of the Nigerian Economy. He made this remark after signing and receiving the hand over notes in the Ministry. The new Permanent Secretary for the Ministry of Works Mr. Yakubu Kofarmata, was extremely glad to be back to the Ministry, haven served preiviously in the Ministry as an Asst. Director.

He was Particularly delighted seeing a good number of female leaders and architects still present, adding that it was an indication that the Ministry of works is a place that can bring the needed change in the country.

Mr YAKUBU KOFARMATA said in his words “I come here as a brother, friend and colleague and so we have to work together to help the President as well as the Honorable Minister to achieve all that they have spelt out in their agenda”.

Kofarmata further expressed optimism that his leadership would be a new beginning that would bring about innovation for the Ministry and the Country at large.

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