The FG Inherited Debt and Infrastructure Plans - Umahi

The Federal Government revealed that it inherited approximately N14 trillion in debt related to 2,604 road projects spanning 18,000 kilometers from the previous administration led by Muhammadu Buhari.
Senator Dave Umahi
Senator Dave Umahivanguardngr

Senator Dave Umahi, the Minister of Works, shared this information during a press briefing held after his first meeting with President Bola Tinubu at the Presidential Villa in Abuja.

During the meeting, Minister Umahi also disclosed that President Tinubu and the Chairman and CEO of BUA Cement reached an agreement to reduce cement prices in the country. Additionally, he sought President Tinubu's approval to terminate projects that had remained incomplete for up to a decade due to a lack of defined funding sources.

The government plans to redesign these unfinished road projects using concrete pavements, which Minister Umahi believes are more reliable and cost-effective than the commonly used bitumen, with a potential lifespan of up to 50 years.

Minister Umahi stated, "The ministry inherited a total of 2,604 projects, worth N14 trillion, for 18,000 kilometers of road." Since assuming office on August 21, the ministry has paid N4 trillion of the N14 trillion owed to contractors for various road projects nationwide. However, there remains a funding gap of N6 trillion.

He noted the need for a more efficient appropriation system for federal road projects, highlighting that the current piecemeal disbursement of funds to contractors hinders project delivery. Minister Umahi also called for the prioritization of projects through engagement with the National Assembly.

In light of the short lifespan of many roads, he proposed the redesign and construction of unfinished federal roads using reinforced concrete to enhance their durability and longevity.

Related Stories

No stories found.
Latest Lagos Local News -