President Tinubu took over on May 29, 2023, having met 2,604 unfinished projects. However, to finish these projects, the sum of ₦19 trillion is required. Minister of Works, Engr. David Umahi.
FMT BLOG reported that Umahi made this known during a presentation on Wednesday in Abuja, impressing on the Federal Government that the naira depreciation in the foreign exchange market and removal of fuel subsidies had affected earlier costings for the Federal Government to meet up with road contracts.
That amount is a revision upward of ₦3 trillion from the earlier projection of ₦16 trillion in August 2024.
Umahi noted on 23 August at a budget briefing that ‘The revenue gap to fund all inherited projects as of May 2023 is N13 trillion and will be more than N16 trillion when all the projects are reviewed to reflect current realities in the light of the removal of fuel subsidies and floating of the naira’.
Nevertheless, on the same day, the minister was quoted in the same media outlet as saying: ‘These matters still hang over us and affect what we do at the ministry in respect to project delivery.’
Umahi continued: ‘The President inherited, as of the 29th of the 28th of May, 2023, a total of 2,604 projects. The total cost of those projects was ₦13 trillion, which the president inherited. And a debt to contractors, ₦1.6 trillion.
‘Look at the variance because of floating of naira. If you look at all these projects again, you will get over ₦19 trillion, the total ongoing projects.’
The minister explained that the President decided to keep all the projects ongoing as in the hope to garner funding from the state’s domestic and international sources (loans), in honour of his sense of care towards Nigerians.
He told us that the President has paid special attention to the Ministry of Works. He knows that building roads and bridges can help the population to develop the economy.
Moreover, he warned that ministry would not hesitate to cancel the Abuja-Kano road contract given to Messers Julius Berger if the contractor does not mobilise to site by the end of the 7-day ultimatum, which ends tomorrow.
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He observed that negotiations with the contractor took 17 months and that the minister felt compelled to intervene and settle the dispute.
Tinubu | David Umahi
