“The Ministry of Works, on behalf of the Federal Government, has allocated N431 billion for contractors. Minister of Works, David Umahi, made this announcement during a meeting with road dualisation project contractors and zonal directors of the ministry in Abuja.
The minister also introduced a performance bond, which means that all new projects will be guaranteed for a period of 10 years. Umahi emphasized the importance of focusing on most of the dualized roads across the country.
He mentioned that the Nigerian National Petroleum Corporation is funding 50% of the contract sum, with this funding expected to continue until 2025. The ministry has allocated N431 billion in available funds for contractors, although no certificates have been issued yet. The minister urged contractors to submit claims for work done under Phase 1 and to consult their regional directors for any necessary clarifications before certificates are issued.
Umahi stressed the need for contractors to adhere to their designated lanes if their projects are less than 50% complete. He also encouraged contractors to write to the ministry if they have constructed roads that do not have a minimum lifespan of 10 years, either to cease work or reconstruct the road to meet the 10-year requirement.
The minister issued a warning that he would not accept excuses related to road failures due to overloading and urged contractors to cooperate in building roads using concrete technology, similar to practices in India and Singapore.
Umahi urged contractors and stakeholders to align with the ‘Renewed Hope Agenda of Mr. President.’ He noted that this administration has 18,000 kilometers of roads and inherited contracts worth approximately N14.1 trillion. Out of this, N4 trillion has been paid for various projects, some of which have been ongoing for 10 to 20 years. The minister also expressed concerns about contractors inflating their contract sums by 100%, which has led to delays in payments.”
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