The Minister of Works, Mr. David Umahi, has announced that the federal government requires ₦16 trillion to close the financial gap for road construction projects nationwide.
Addressing the press on Thursday, Umahi highlighted that the administration of President Bola Tinubu inherited 18,932.50 kilometers of ongoing road work and 2,064 active contracts.
Umahi attributed the substantial funding requirement to recent economic changes, including the removal of fuel subsidies and the floating of the naira. He elaborated that the value of inherited road projects stood at approximately ₦13 trillion as of May 2023. However, due to current market conditions, this amount is expected to exceed ₦16 trillion.
“The economic decisions to remove fuel subsidies and float the naira have impacted project costs significantly,” Umahi explained. “These projects, some of which have been delayed for five to eight years, are being reassessed to reflect present-day financial realities.”
The Minister detailed past project funding as follows: ₦100 billion in 2018, ₦162.55 billion in 2020, and ₦210.56 billion in 2021. In 2022, ₦110 billion was allocated for 2,812 kilometers of road, with an additional ₦250 billion approved for 2023 SUKUK provisions.
He noted that these projects span all six geopolitical zones of Nigeria and emphasized that the federal government may refrain from initiating new road projects in 2025. Instead, the focus will be on securing funds to complete ongoing and inherited projects.
