The ongoing pressure on the naira in the foreign exchange market, coupled with the removal of fuel subsidies, has significantly impacted the Nigerian Government’s projections for completing inherited road projects across the nation.
At a recent briefing, Minister of Works David Umahi announced that President Bola Tinubu’s administration now requires over N19 trillion to finalize these projects, an increase of N3 trillion from the earlier estimate of N16 trillion made in August 2024.
Umahi stated, “The funding gap to complete all inherited projects was about N13 trillion as of May 2023, and that was projected to rise to over N16 trillion when reviewed in light of current market realities, primarily due to the removal of fuel subsidy and the floating of the naira.”
During the briefing, Umahi elaborated on how these economic factors have adversely affected the ministry’s ability to deliver projects. “The President inherited a total of 2,604 projects as of May 29, 2023, with a total cost of N13 trillion and outstanding debts to contractors amounting to N1.6 trillion. Given the fluctuations caused by the naira’s floating, a comprehensive review of all these projects indicates a need for over N19 trillion.”
He noted that President Tinubu is committed to keeping all projects active, seeking funding from both internal and external sources, including loans, due to his concern for the welfare of Nigerians.
Umahi emphasized that the President prioritizes the Ministry of Works, recognizing that robust infrastructure such as roads and bridges can unleash significant economic benefits for citizens.
In a related note, Umahi indicated that the ministry would take decisive action regarding the Abuja-Kano road project, warning that the contract with Julius Berger could be revoked if the company fails to mobilize to the site by the end of a 7-day ultimatum, which expires tomorrow. He expressed frustration over the prolonged negotiations with the contractor, which lasted nearly 17 months, asserting that the government could no longer afford further delays.
