The Minister of Works, Engr. David Umahi, announced that the Ministry will not propose any new projects for the 2025 fiscal year unless directed otherwise by President Bola Tinubu.
This decision aims to minimize, if not eliminate, the problem of abandoned projects.
Umahi made this declaration during a media briefing in Abuja on Thursday, marking his first year in office.
He explained that the Ministry has adopted this approach due to the significant funding gap of over N16 trillion in inherited and ongoing projects.
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According to the minister, “The Present administration inherited a total of 18, 932.50 Km of ongoing projects (roads) with a total of 2,064 number of contracts.
“The value of inherited ongoing projects is N14,424 trillion. Of this amount, N4.734 trillion was certified and the amount paid is N3.122 trillion while the amount owed contractors for certified works is N1.612 trillion.
“The funding gap to complete all inherited projects is about N13 trillion as at May, 2023 and will be more than N16 trillion, when all projects are reviewed in line with current market realities.
He further said, “Due to the removal of fuel subsidies 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 to between 5 to 18 years, consequently, the projects are being reviewed to match with current market realities.
He clarified, however, that this does not include projects awarded under the current administration.
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Unahi said, “We are not going to propose new projects for the 2025 fiscal year unless otherwise dictated by Mr. President.
“I’m going to tell the Ministry of Finance to provide funds for us to complete ongoing projects.
“Right now, we have over 4,000 ongoing projects and a funding gap of N16trillion, most of them were inherited by this administration.
“Some of these projects were awarded when the Naira exchanged for N150 to $1 USD.”
The minister further explained that inflation has greatly increased the costs of many projects, and it is in the nation’s best interest to focus on completing the majority, if not all, of the ongoing projects.
He reaffirmed President Bola Tinubu’s dedication to honoring his campaign promises and improving Nigeria’s state.
Umahi highlighted that the current administration has launched unprecedented legacy projects in the road sector and undertaken numerous emergency repairs for roads and bridges damaged by floods and other natural disasters.
