- Safiu Kehinde
The Federal Government has given an estimate of over N16 trillion needed for the completion of inherited road projects.
This was disclosed by the Minister of Works, David Umahi, while addressing the press in Abuja yesterday on the achievement of the ministry under the Renewed Hope Agenda of President Bola Ahmed Tinubu.
Umahi, who alongside other ministers marked their one year in office earlier this week, recalled the contracts and unfinished road projects inherited when their administration came to power.
He revealed that the present administration inherited a total of 18,932.50 kilometres of ongoing road projects, with a total of 2,064 contracts.
The minister said that the total value of all the ongoing projects as at May 2023 was N14.42 trillion.
He said that the amount certified was N4.73 trillion; however, N3.12 trillion was paid, and the amount owed contractors for certified works was N1.61 trillion.
“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
“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 disclosed.
He further revealed means at which the present administration had taken 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).
The minister said that other funding included the Road Tax Credit Scheme (NNPCL, NLNG, Dangote, BUA, MIN, Mainstream Energy Solutions Ltd., and GZI Industries) and the use of multilateral loans.
Others are the Public Private Partnership (PPP)/Highway Development Management Initiative (HDMI) and the newly established Renewed Hope Infrastructure Funding model.