The Minister of Works, Dave Umahi, has disclosed that President Bola Tinubu's administration inherited 2,064 active road projects valued at N13 trillion upon taking office, highlighting the enormity of the challenge at hand.
During a press conference held on Thursday, Umahi noted that the current administration was confronted with a significant number of ongoing contracts that demanded immediate prioritization and restructuring.
"When we assumed our roles, it was clear that the president had inherited 2,064 active projects, valued at N13 trillion at that time," he stated.
Umahi further mentioned that even with attempts to streamline and prioritize the projects, the total contract value has since escalated.
"Currently, despite our prioritization efforts, the total contract amount has reached N16.9 trillion," he remarked.
He elaborated that many of these projects were initiated under funding agreements associated with the Nigerian National Petroleum Company (NNPC) via Executive Order 007, but financial constraints have necessitated a reassessment of approaches.
"Our review indicates that it would require roughly N7 trillion to fully complete all the projects linked to NNPC," he stated.
The Minister indicated that the President mandated the continuation of all inherited projects while restructuring them into phases that reflect available resources.
"The directive is to take charge as Minister of Works, prioritize the projects, redefine them, and adjust their scopes accordingly," he explained.
Umahi reiterated that the President instructed that all NNPC inherited projects should continue, and that is currently being executed.
He acknowledged the substantial outstanding claims that contractors possess but noted that partial payments had been authorized by the President.
" contractors are owed a total of 263 billion, and as per the President's directive, 127 billion has already been disbursed," he shared.
He praised the contractors for their commitment to returning to sites despite financial challenges and mentioned that the ministry is documenting previous phases of work before moving forward with new projects.
"Our previous work with NNPC is classified as phase one," he clarified, indicating that phase two is now being defined within the limits of current resources, and any remaining work will be considered phase three.
Moreover, the minister commended President Tinubu for sustaining inherited projects throughout various geopolitical zones, notwithstanding fiscal limitations.
"When the prior administration initiated these projects, distribution was uneven across regions: the North claimed 26 percent, the South had 23 percent, the Northeast approximately 17 percent, Southeast accounted for 3.5 percent, and the Southwest had about 5 percent. The president has persevered with all these projects," he detailed.
Umahi expressed confidence that the administration's approach is aimed at delivering robust infrastructure while ensuring financial accountability.
"The Ministry of Works is striving to uphold the highest standards of value for money within our capabilities and ethical considerations," he affirmed.
He concluded by stating that although the inherited obligations are significant, the government remains dedicated to completing the projects in phases, ensuring long-term viability.
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