Umahi clarifies Tinubu administration’s position on inherited, uncompleted road projects

The Minister of Works, David Umahi, has debunked rumours in the media claiming that the Federal Executive Council (FEC) stepped down inherited road projects.

During a meeting with contractors in Abuja, Mr Umahi said that such information was misleading, adding that neither President Bola Tinubu nor FEC gave that directive.

He said that the ministry was only directed by the president to review all projects in the country and decide which would be given priority based on the availability of funds.

Mr Umahi said, “Some of these projects were awarded 18 years ago, some 10 years ago, others five years ago.

“On the issue of new projects, if we have appropriation that has not been completed, at least one kilometre, we are not going to carry out such appropriation.

“That is what FEC is concerned about. We can’t have N500 million on budget but procurement is supposed to be N50 billion or N100 billion and you go ahead to award such a project. We have been directed not to do so.”

Mr Umahi reiterated the federal government’s determination to introduce funding and budgeting innovations that would fast-track road infrastructure development nationwide.

He said that FEC had directed the Ministry of Works to collaborate with the Federal Ministries of Finance, Budget, and National Planning to develop proper budgetary estimates.

This, he said, was for the 2025 financial year for projects that were not appropriately budgeted for but have attained probably 80 per cent completion so that such projects would be completed and delivered.

He, however, said that projects with huge procurement costs with little appropriation and with little completion milestones would be reviewed in line with section 51 of the Special Conditions of Contracts.

“On issues of Variation on Price (VOP), all projects we awarded in 2024 will not attract any VOP.

“We have made it a policy that such projects can not get any variation.

“However, within the course of the year and the project execution, if there are issues changing the basic market prices of construction materials to a certain extent, we will revisit the issue of VOP and it will not be selective,” Mr Umahi said.

The minister assured contractors of the federal government’s willingness to engage in contract review and cost augmentation on the inherited ongoing projects.

This is in view of the geometric rise in the cost of contract elements caused by the inherited challenging economy.

He said this would, however, be subject to funds availability.

Mr Umahi said that the decision for windows to review and augment the cost of inherited ongoing projects was borne out of the president’s magnanimity and commitment to completing all inherited projects.

He added, “The President promised to look for ways to fund the projects, even outside the budgetary provisions, through the National Assembly.

“What we are doing now is to review the projects in line with availability of funds and make a proposal to FEC.

“If such a project has attained about 80 per cent completion, then we will make a proposal to FEC that in subsequent appropriation, money should be made available, and such projects should be made a priority so that it could be completed.”

Mr Umahi directed that contractors working on projects with dualisation should, as a matter of policy, concentrate on completing one carriageway and turning it over for public use before working on the other lane.

(NAN)