The Minister of Works, David Umahi, has refuted rumours suggesting that the Federal Executive Council (FEC) had abandoned inherited road projects.
During a meeting with contractors in Abuja, Umahi clarified that neither President Bola Tinubu nor FEC had issued such a directive. Instead, the President instructed the ministry to review all projects nationwide to prioritize them based on available funds.
“Some of these projects were awarded 18 years ago, some 10 years ago, others five years ago,” Umahi noted. He explained that for new projects, the ministry would not proceed if there was an incomplete appropriation, emphasizing that FEC’s concern was to avoid awarding projects with insufficient budgetary provisions.
“We can’t have N500 million on budget but procurement is supposed to be N50 billion or N100 billion and you go ahead to award such a project. We have been directed not to do so,” he stated.
Umahi reiterated the Federal Government’s commitment to innovative funding and budgeting approaches to accelerate road infrastructure development. He mentioned that FEC had instructed the Ministry of Works to collaborate with the Ministries of Finance, Budget, and National Planning to prepare accurate budgetary estimates for the 2025 financial year. This aims to ensure that projects with substantial progress but inadequate budgets receive the necessary funds for completion.
Projects with high procurement costs but minimal appropriations and completion milestones will be reviewed according to section 51 of the Special Conditions of Contracts. On the topic of Variation on Price (VOP), Umahi declared, “All projects awarded in 2024 will not attract any VOP. We have made it a policy that such projects cannot get any variation. However, if market prices for construction materials change significantly during the year, we will revisit the issue of VOP, ensuring it is not selective.”
The minister assured contractors of the government’s readiness to review and augment the costs of ongoing projects, considering the rising costs caused by the challenging economy. This, however, would depend on the availability of funds.
Umahi highlighted President Tinubu’s commitment to completing all inherited projects, even seeking funding outside budgetary provisions through the National Assembly. “If such a project has attained about 80 percent completion, then we will propose to FEC that in subsequent appropriations, money should be allocated, making such projects a priority for completion,” he added.
Umahi directed contractors working on dualization projects to prioritize completing one carriageway and making it available for public use before proceeding with the other lane.
