R
Richard Ogunsile
Guest
President Bola Ahmed Tinubu inherited a total of 2,604 projects as of May 29, 2023, and will need the sum of ₦19 trillion to complete these projects, says the Minister of Works, Engr. David Umahi.
Naija News reports that Umahi disclosed this during a briefing yesterday in Abuja, stating that the naira’s depreciation in the foreign exchange market, coupled with the elimination of the fuel subsidy, has adversely affected previous estimates regarding the Federal Government’s financial needs to finalize ongoing road projects across the country.
This revised estimate signifies an increase of ₦3 trillion from the earlier projection of ₦16 trillion made in August 2024.
Umahi stated at a briefing on August 23rd that: “The funding gap to complete all the inherited projects is about ₦13 trillion as of May 2023; that will be more than ₦16 trillion when all projects are reviewed in line with current market realities. This is due to the removal of fuel subsidy and floating of the naira.”
However, while addressing the media yesterday, the minister explained that these issues had continued to have an impact on the ministry’s activities with respect to project delivery.
Umahi said: “The President inherited a total of 2,604 projects as of May 29, 2023. The total cost was ₦13 trillion, which the President inherited. And a debt to contractors of ₦1.6 trillion.
“When you look at the variations by reason of the floating of the naira, you will find that if you review all these projects, you get over ₦19 trillion, the total ongoing projects.”
The minister elaborated that the President has chosen to maintain all ongoing projects, aiming to secure funding from both domestic and international sources, including loans, due to his commitment to the welfare of Nigerians.
He indicated that the President has prioritized the Ministry of Works, fully aware that the development of roads and bridges can generate significant economic advantages for the populace.
Additionally, he stated that the ministry would not hesitate to terminate the Abuja-Kano road contract awarded to Messers Julius Berger if the contractor fails to mobilize to the site by the end of the 7-day ultimatum, which concludes tomorrow.
He noted that discussions between the ministry and the contractor extended over a period of 17 months, leading the government to conclude that a resolution was necessary.
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