By SUNDAY ABBA, Abuja
The Renewed Hope administration of President Bola Ahmed Tinubu may have to expend and estimated whopping sum of N16 trillion in order to complete all the 18, 932 kilometres (kms) inherited road projects amounting to 2064 contracts, across the country, most of which are currently under execution, including some that have lingered for up to 18 years and above.
Minister of Works, Senator David Umahi, disclosed this whole presenting his scorecard during a media conference on Thursday at the ministry’s headquarters in Abuja to mark his one year in office.
The Minister noted that the funding gap in completing all the inherited projects was about N13 trillion as at May, 2023, but when valued according to current market realities, it worths N16 trillion, hence all such projects are being reviewed in line with the dynamics of the economy.
He said, “Let me start this presentation by highlighting the status of the road and bridge projects being executed by the Federal Ministry of Works at the commencement of this administration in May, 2023 and and report on the achievements we made up to date, pursuant to the Renewed Hope mandate of Mr President and how it is impacting on the socio-economic development of Nigeria.
“The present administration inherited a total of 18,932.50Km of ongoing projects with a total of 2,064 number of contracts.
“The total value of all the ongoing projects as at May, 2023 was $414,424,982,425,616.40. Amount certified, N4,734,849,328,306.77. Amount paid $3,122,628,914,427.12.
Amount owed contractors for certified works was $41,612,220,413,879.65.
“The funding gap to complete all the inherited projects is about N13trillion as at May, 2023 and will be more than 16Trillion Naira when all projects are reviewed in line with current market realities.
“Due to the removal of fuel subsidy and the floating of the Naira, though it is a very sound economic decision of this administration, and considering the fact that some of the projects have lingered for between 5 to 18years, consequently, the projects are being reviewed to match with current market realities.”
Speaking to the new capital projects, Umahi said the sum of N300bn was provided in the 2023 supplementary budget for some on-going and new emergency projects.
“260 emergency projects were provided for in the 2023 supplementary Budget to address distressed sections of roads on the Federal Road Network nationwide at a total cost of N217,264,810,083.4.
“About 90% of the works have been executed to completion on the projects
“Over 80% of the funds have been released to the ministry for payment of executed works,” he said, and gave a breakdown of the 260 emergency projects zone by zone.
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According to him, in a deliberate move to ensure that fund does not inhibit the pursuit of the renewed Hope mandate, some alternative funding models were used to include: Presidential Infrastructure Development Fund (PIDF), Sovereign SUKUK issued by Debt Management Office (DMO), Road Tax Credit Scheme (NNPCL, NLNG, Dangote, BUA, MIN, Mainstream Energy Solutions Limited GZI Industries) and use of Multi-lateral loans, Public Private Partnership (PPP)/Highway Development Management Initiative (HDMI) and the newly established Renewed Hope Infrastructure Funding model.
He explained that the federal government through the Debt Management Office (DMO) initiated Sukuk Funding Programme for financing road infrastructure through which the total sum of N573.122bn was invested in road construction & rehabilitation in the years 2017(100bn), 2018 (100bn), 2020 (162.557bn), and 2021 (210.565bn) achieving 2,812km of road recovery.
“A total of 63 selected critical projects are being funded with the sum of N110,000,000,000.00 under the 2022 Sovereign Sukuk Issuance.
“The projects are spread across the six geo-political zone with each zone approved an equal sum of N18.33bn
“The 2023 Sovereign Sukuk Issuance is in the sum of N250bn for the funding of 82 projects. Each of the zones was allocated the equal sum of N41.67bn to complete most of the ongoing SUKUK projects,” he said, and went further to give update and explanation on all the aforementioned funding alternatives.
On the four (4) legacy projects of Mr President namely, construction of Lagos — Calabar (750km) Coastal Road Corridor; construction of Sokoto — Badagry (1,068km) Road, Calabar — Abuja Superhighway Project (482km) (Trans Saharan Road), and Akwanga-Jos-Bauchi-Gombe Road (439km), the Minister assured that the Ministry would “enhance the execution and completion of Mr President’s Legacy Projects”.
According to him, the ministry will not recommend new projects in the 2025 fiscal year but focus on completing the several ongoing and abandoned projects across the country except the president directs otherwise.