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FG earmarks N431bn for road contractors, seeks 10-year guarantee

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Ministry of Works

The Ministry of Works, on behalf of the Federal Government, is set to disburse N431 billion to road contractors.

During a Thursday meeting in Abuja at the ministry’s office, Minister David Umahi disclosed this as he interacted with contractors responsible for road dualization projects and the ministry’s zonal directors.

The minister also conveyed the ministry’s plan to concentrate on enhancing the dualized road network across the nation.

Umahi also announced the implementation of a performance bond, ensuring a 10-year guarantee for all new projects.

He said,

  • “Why we are here now is to announce our intention to face most of the dualized roads in the country.
  • “I want to remind you that Nigerian National Petroleum Corporation is funding 50 percent of the contract sum and that funding goes up to 2025.
  • “We have N431bn of money that is ready for contractors to clear but there is no certificate for it. If you are doing a job under Phase 1, make an effort to make claims, if your job involves augmentation go back to your regional director for understanding before I sign the certificate. Any certificate I sign now, I have to take account for it even when I have leave office.”

Umahi, speaking via the Director of Information, Press, and Public Relations Unit, Blessing Lere-Adams, additionally emphasized that contractors should remain dedicated to one lane if their work had not yet reached the halfway mark.

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Furthermore, the Minister warned contractors that he would not entertain stories of failures on the roads due to overloading.

He called upon all the contractors to work together with him, adopting the concrete technology used in road construction in India and Singapore.

Umahi said this administration has 1800 kilometre of roads, and inherited a contract sum of about N14.1 trillion and out of which N4trillion is being paid in all the projects, some of the projects have lasted between 10 to 20years.

He said,

  • “We are going back to the original concept of the projects and the necessity of any additional works and also see how we get a fair deal, expecting an endorsement from the Ministry of what is not acceptable to Nigerian Society of Engineers is not possible”.

The Minister stated that certain contractors have increased their contract amounts by 100%, which is the primary reason for delayed payments.


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