Minister of Works, David Umahi, has revealed that the Federal Government requires over N16 trillion to finish road projects inherited from previous administrations.
Umahi, who previously served as the governor of Ebonyi State, shared this information during a press briefing on Thursday, where he discussed the progress of the ministry under President Bola Tinubu’s Renewed Hope Agenda.
According to Umahi, the current administration inherited 18,932.50 kilometers of ongoing road projects, involving 2,064 contracts. The total cost of these projects as of May 2023 was estimated at N14.42 trillion.
Out of this amount, N4.73 trillion has been certified, with N3.12 trillion already disbursed. However, contractors are still owed N1.61 trillion for completed work.
“The funding gap to complete all the inherited projects was about N13 trillion as of May 2023. This figure is expected to exceed N16 trillion after all projects are reviewed to reflect current market conditions,” Umahi stated. He attributed this increase to the removal of fuel subsidies and the floating of the naira.
Umahi noted that some of these projects have been ongoing for five to eight years, and their costs are being reassessed to align with current economic realities. This assessment does not include new projects under the Renewed Hope Agenda or the four legacy projects, he added.
Traditionally, highway projects were funded through annual budgetary allocations. However, Umahi pointed out that budgetary provisions have often been insufficient to meet the demands of highway development.
