Federal Government Denies Halting Inherited Road Projects

The Federal Government has dismissed rumors that it has halted road projects inherited from previous administrations. Minister of Works, Dave Umahi, clarified during a meeting with contractors in Abuja that neither President Bola Tinubu nor the Federal Executive Council (FEC) issued such a directive.

Umahi explained that the president instructed the ministry to review all ongoing projects in the country to prioritize those that align with available funding. “Some of these projects were awarded 18 years ago, some 10 years ago, others five years ago,” he said. “We are focusing on projects with proper appropriation and tangible progress.”

He emphasized that the FEC is concerned about projects with unrealistic budget allocations. “We can’t have N500 million on the budget for a project requiring N50 billion or N100 billion,” Umahi stated. “We’ve been directed to avoid such scenarios.”

The Minister reaffirmed the Federal Government’s commitment to introducing funding and budgeting innovations to accelerate nationwide road infrastructure development. He noted that the FEC had tasked the Ministry of Works to collaborate with the Federal Ministries of Finance, Budget, and National Planning to present accurate budgetary estimates for the 2025 financial year. This effort aims to ensure that projects nearing 80 percent completion receive adequate funding for completion.

Umahi also mentioned that projects with substantial procurement costs but minimal appropriation and progress would be reviewed under section 51 of the Special Conditions of Contracts.

Addressing the issue of Variation on Price (VOP), Umahi stated, “All projects awarded in 2024 will not attract any VOP. However, if there are significant changes in market prices for construction materials during the year, we will revisit the VOP issue, ensuring it is not selective.”