FG Needs ₦16 Trillion To Complete Road Projects – Umahi

The Minister of Works, Mr David Umahi, has said the federal government needs ₦16 trillion to cover the financial gap for road projects across the country.

David Umahi said President Bola Tinubu’s administration inherited a total of 18,932.50 kilometers of ongoing road and a total of 2,064 contracts.

Umahi stated this on Thursday while addressing newsmen. He explained that the removal of fuel subsidy and floating naira were responsible for the ₦16 trillion needed to conclude the government’s road project.

According to him, the inherited projects are worth 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 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.

In a breakdown, the former governor of Ebonyi State added that the projects include ₦100 billion in 2018, ₦162.55 billion in 2020, and ₦210.56 billion in 2021. For 2,812 km of road, ₦110 billion was approved in 2022, and the approved 2023 SUKUK provision stood at ₦250 billion.

“The projects are spread across the six geopolitical zones of the country,” he added.

Umahi said the federal government may not embark on new road projects in 2025. He noted that the government would source funds to complete all ongoing and inherited projects.