The Minister of Works, David Umahi, has revealed that the federal government needs ₦16 trillion to bridge the financial gap for ongoing road projects across Nigeria. Umahi explained that President Bola Tinubu’s administration inherited a total of 18,932.50 kilometers of road projects and 2,064 contracts.
Speaking to the press on Thursday, Umahi attributed the ₦16 trillion requirement to the removal of fuel subsidies and the floating of the naira. He noted that the projects inherited as of May 2023 were valued at approximately ₦13 trillion, a figure that is expected to exceed ₦16 trillion when adjusted for current market conditions.
“The removal of fuel subsidies and the floating of the naira are key factors in this adjustment,” Umahi said. “This decision is economically sound, given that some projects have been delayed for five to eight years.”
The minister detailed that the review of these projects is necessary to align with present economic realities, excluding new projects under the Renewed Hope Agenda and the four legacy projects.
He provided a breakdown of the funding over recent years: ₦100 billion in 2018, ₦162.55 billion in 2020, and ₦210.56 billion in 2021. In 2022, ₦110 billion was approved for 2,812 kilometers of road, and ₦250 billion was allocated through the 2023 SUKUK provision.
“These projects are distributed across all six geopolitical zones of Nigeria,” Umahi added.
Looking ahead, Umahi indicated that the federal government may not initiate new road projects in 2025, focusing instead on securing funds to complete ongoing and inherited projects.
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