Minister of Works, David Umahi, has claimed that the Federal Government needs over N16 trillion to enable the ministry complete inherited road projects across the country.
Umahi disclosed this on Thursday in Abuja while briefing newsmen on the achievements of the ministry under the Renewed Hope Agenda of President Bola Tinubu.
According to him, the present administration inherited a total of 18,932.50 kilometres of ongoing road projects, with a total of 2,064 contracts.
He said that the total value of all the ongoing projects as at May 2023 was N14.42 trillion.
According to him, the amount certified was N4.73 trillion with N3.12 trillion paid and N1.61 trillion owed.
“The funding gap to complete all the inherited projects is about N13 trillion as at May 2023 and will be more than N16 trillion when all projects are reviewed, in line with current market realities.
“This is due to the removal of fuel subsidies and the floating of the naira.
“It is a very sound economic decision by this administration, considering the fact that some of the projects have lingered for between five and eight years.
“Consequently, the projects are being reviewed to match current market realities; this position excludes all the new projects under the Renewed Hope Agenda and the four legacy projects,’’ Umahi said.
According to him, the old traditional method of funding highway projects was through the annual budgetary provision, adding however that the method had seemed inadequate to address the challenges of highway development, over the years.
Umahi stated that to meet up funding for road projects, the ministry embraced alternative funding mechanisms like the Presidential Infrastructure Development Fund (PIDF) and Sovereign SUKUK issued by the Debt Management Office (DMO).
