Umahi also said the Tinubu-led govt inherited a total of 18,932.50 kilometres of ongoing road projects, with a total of 2,064 contracts
By Kehinde Okeowo
Minister of Works, David Umahi, has disclosed that the Federal Government needs over N16 trillion to complete the road projects inherited from previous administrations.
He made this known on Thursday in Abuja, while briefing journalists on the accomplishments of his ministry under the ‘Renewed Hope Agenda‘ of President Bola Tinubu.
The All Progressives Congress (APC) chieftain during the media parley said the present administration inherited a total of 18,932.50 kilometres of ongoing road projects, with a total of 2,064 contracts.
Umahi added that the total value of all the ongoing projects as at May 2023 was N14.42 trillion.
He further stated that the amount certified was N4.73 trillion; however, N3.12 trillion was paid, and the amount owed contractors for certified works was N1.61 trillion.
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Speaking during the media briefing, the former Ebonyi State governor said, “The funding gap to complete all the inherited projects is about N13 trillion as at May 2023 and will be more than N16 trillion when all projects are reviewed, in line with current market realities.
“This is due to the removal of fuel subsidies and the floating of the naira.
“It is a very sound economic decision by this administration, considering the fact that some of the projects have lingered for between five and eight years.
“Consequently, the projects are being reviewed to match current market realities; this position excludes all the new projects under the Renewed Hope Agenda and the four legacy projects.”
Umahi went on to note that
the old traditional method of funding highway projects was through the annual budgetary provision.
He, however, said that over the years, budget provisions have seemed inadequate to address the challenges of highway development.