The Federal government said it has not abandoned road projects inherited from the previous administration.
Correcting the misrepresentation of the Federal Executive Council’s (FEC) decision by some media outlets, Minister of Works David Umahi stated it was misleading to report that FEC had stepped down inherited projects.
He clarified that neither the President nor FEC directed that these ongoing projects be halted.
The Federal government has not and will not abandon road projects it inherited from the past administration, the Minister of Works, David Umahi has said.
Minister of Works, David Umahi, decried pressure tactics employed by some contractors to force the Ministry to meet their demands while insisting that the Federal government’s stance on contract reviews and Variation On Price (VOP) would not be compromised.
Speaking in Abuja on Friday during a meeting with contractors handling federal road projects, Umahi criticized the misrepresentation of the Federal Executive Council’s (FEC) position on inherited road projects, saying, “What we saw on Arise television, I personally saw that, was that FEC had directed that all inherited projects be stepped down.
“That is very, very misleading, and is capable of causing serious harm for our economy. Neither the President nor FEC directed that inherited projects should be stepped down.
“Rather, it was Mr. President, out of his magnanimity, and very exceptional, 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.
“And that is simply what the Minister of Works did.
“And so, in reviewing the inherited projects, 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, they will 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.
“And that is simply what FEC directed, and that is simply what we are going to do. We are reviewing such projects to go back to the Federal Executive Council, in line with their directive. The president has not stepped down all inherited projects”.
He stated that the FEC was committed to completing all ongoing road projects, both inherited and new, which is why contract reviews are being initiated.
He clarified that the FEC has noted significant disparities between the proposed increases in contract costs and the available funding for some projects, including new ones awaiting approval.
“The subject matter in fact was not about the unit cost, because we are very satisfied as a Ministry with the costs that we have offered to you, which are actually the unit cost in line with the realities of the market prices. Some of these projects were awarded 18 years ago, some 10 years ago, 5 years ago,” he noted.
How also clarified some grey areas that have become a source of challenge to the contractors and the Ministry, such as contract review, contract augmentation, Variation On Price (VOP), and adherence to contract timetable, among others.
While assuring the contractors of the Federal Government’s willingness to engage in contract review and cost augmentation on the inherited ongoing projects in view of the geometric rise in the cost of contract elements caused by the inherited challenging economy, but would be done subject to fund availability, however, bulked at the deployment of pressure tactics to arm-twist the Ministry into shirking its responsibility to the Nigerian road users.
“The decision for windows to review and augment the cost of inherited ongoing projects was borne out of Mr. President’s magnanimity and commitment to completing all inherited and funded ongoing Federal government road projects nationwide.
“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”
Regarding the government’s determination to bring funding and budgeting innovations to fast-track road infrastructure development, Umahi said the FEC had directed the Federal Ministry of Works to collaborate with the Federal Ministries of Finance and Budget & National Planning.
This collaboration aims to prepare proper budgetary estimates for the 2025 financial year for projects that were not appropriately budgeted for but have attained around 80% completion, ensuring these projects can be completed and delivered, he explained.
“But projects with huge procurement costs but have little appropriation and with little completion, the milestone would be reviewed in line with section 51 of the Special Conditions of Contracts.
“On issues of Variation on Price (VOP), all projects we awarded in 2024 will not attract any VOP. And we’ve made it a policy that such projects cannot get any variation.
“However, within the course of the year and the project execution, if there are issues (God forbid) that do change the basic market prices of construction materials to a certain extent, we will revisit the issue of VOP. And it will not be selective,” he said.
For projects with dualization, the Minister also directed the contractors with such projects, as a matter of policy, must concentrate and first complete one carriageway and turn it over for public use and must within the period maintain the other carriageway for public use.
