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FGN To Review All Inherited Road Projects

News Editor by News Editor
July 14, 2024
in Business
0
FGN To Review All Inherited Road Projects

Nigeria's Minister of Works, Senator David Umahi.

By SUNDAY ABBA, Abuja

The Federal Government of Nigeria (FGN) is to review all ongoing projects in the country to decide those that would be given priority based on availability of funds.

Minister of Works, David Umahi, who made this known during a meeting with contractors in Abuja at the weekend also refuted media reports which claimed that the Federal Executive Council (FEC) stepped down inherited road projects.

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According to the Minister, the information was misleading and should be disregarded as neither President Bola Tinubu nor FEC gave that directive, adding that the ministry was only directed by the president to review all ongoing projects so as to decide those that would be given priority based on availability of funds.

He said, “It was Mr. President, out of his very exceptional magnanimity, that directed that all inherited projects should be made alive through appropriation, promising that he was going to be looking for ways to fund the projects, even outside the budgetary provisions, through the National Assembly.”

“What we are doing now is to review the projects in line with availability of funds and make a proposal to FEC. If such a project has attained about 80% completion, then we make a proposal to FEC that in subsequent appropriation, money should be made available, and such projects should be made a priority, so that it could be completed.

“Some of these projects were awarded 18 years ago, some 10 years ago, others five years ago.

“On the issue of new projects, if we have appropriation that has not been completed, at least, one kilometre, we are not going to carry out such appropriation.

“That is what FEC is concerned about. We can’t have N500 million on budget but procurement is supposed to be N50 billion or N100 billion and you go ahead to award such a project. We have been directed not to do so.”

Umahi reiterated the determination of the Federal Government in bringing funding and budgeting innovations that would fast-track road infrastructure development nationwide.

He said that FEC had directed the Ministry of Works to work with the Federal Ministries of Finance , Budget and National Planning to put forward proper budgetary estimates.

This ,he said ,was for the 2025 financial year for projects that were not appropriately budgeted for but have attained probably 80 per cent completion so that such projects would be completed and delivered.

The Minister however noted that projects with huge procurement costs with little appropriation and with little completion milestones would be reviewed in line with section 51 of the Special Conditions of Contracts.

He also made it clear that for all projects awarded in 2024 Variation of Price (VOP) will not be entertained.

FGN To Review All Inherited Road Projects
Nigeria’s Minister of Works, Senator David Umahi.
News Editor

News Editor

SUMMIT POST (www.summitpostnews.com) is an Online news medium, powered by Highland Media Ltd. We publish a wide range of content, including Politics, Business, Sports and Entertainment on and about Nigeria, Africa and beyond. Follow us on social media for all the latest news and analysis. Contact us: WhatsApp: +234-803-209-6072; Call: +234-705-252-6124 Email: summitpostnigeria@gmail.com

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