Economy
Federal Government Can No Longer Fund All Ongoing Road Projects, Says Minister Umahi
Sen. David Umahi, Nigeria’s Minister of Works, has revealed a critical funding challenge affecting the federal government’s ability to sustain all ongoing road projects nationwide simultaneously.
In a press conference today, Minister Umahi disclosed that President Bola Ahmed has mandated a thorough review of all ongoing projects to prioritize those nearing completion. This directive comes amidst financial constraints that prevent the government from fully funding every project in its current portfolio.
Umahi emphasized that while the government does not intend to abandon inherited projects, those nearing 80% completion will receive priority for funding. He clarified, “The Federal Executive Council has instructed us to assess projects based on fund availability and propose accordingly. Projects nearing completion will be prioritized for subsequent funding allocations.”
Regarding new projects, Umahi underscored a strict adherence to budgetary provisions, stating, “Projects with insufficient budgetary provisions will not be initiated. The FEC is adamant about not awarding contracts where funds are inadequately allocated compared to project requirements.”
The minister also lamented the politicization of road projects, where undue political pressure often influences project allocations without corresponding funding. He criticized the practice, warning that such actions only benefit contractors without ensuring project completion.
In concluding remarks, Umahi addressed contractors unwilling to comply with new guidelines, urging them to terminate contracts if unable to accept revised terms. He warned against further mismanagement of funds, emphasizing, “Continuing in this manner only serves to enrich contractors at the expense of national development.”
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