David Umahi, the Minister of Works, conveyed a crucial message to contractors overseeing Federal Road projects nationwide during a meeting in his office yesterday. He revealed that the administration led by President Ahmed Tinubu has allocated a substantial sum of N431 billion for prompt disbursement to these contractors.
Furthermore, the minister emphasized a significant policy shift. Going forward, all contractors will be obliged to enter into performance contracts. These agreements will serve as a guarantee that the roads constructed under their supervision will endure for a minimum of 10 years. This noteworthy development was officially communicated in a statement issued by the Ministry’s Director of Information and Public Relations, Mrs. Blessing Lere-Adams.
In addition to this, Umahi disclosed the Ministry’s heightened commitment to prioritize dualized road projects throughout the country.
She quoted the Minister as saying, “Why we are here now is to announce our intention to face most of the dualized roads in the country.
“ I want to remind you that Nigerian National Petroleum Corporation (NNPC) is funding 50% percent of the contract sum and that funding goes up to 2025.
“We have N431B of money that is ready for contractors to clear but there is no certificate for it , if you are doing a job under Phase 1, make effort to make claims , if your job involves augmentation go back to your Regional Director for understanding before I sign the certificate , any certificate I sign now ,I have to take account for it even when I have left office.”
The Minister issued a clear directive to contractors, instructing them to remain focused on a single lane if their project progress has not reached the 50% completion mark. He also introduced a Performance Bond requirement for all new projects, guaranteeing a minimum lifespan of 10 years for these endeavors.
He further called upon contractors who have previously constructed roads that fail to meet the 10-year durability standard to communicate with the Ministry. Contractors have two options: either halt ongoing work or embark on reconstruction efforts to ensure the roads meet the specified longevity criteria. The Minister sternly cautioned all contractors against offering excuses if their projects fall short of the mandated standards.
The Minister appealed for collaboration to ensure the successful implementation of concrete technology, a direction the administration is actively pursuing. He cited successful implementations of this technology in India and Singapore as examples.
Earlier, Engr. Umahi urged contractors and other stakeholders to align with the Renewed Hope Agenda of the President. He emphasized that the administration is responsible for overseeing 18,000 kilometers of roads and inherited contracts totaling approximately N14.1 trillion. Out of this, N4 trillion has been disbursed for various projects. Some of these projects have endured for periods ranging from 10 to 20 years.
Furthermore, the Minister pointed out that certain contractors have escalated their contract sums by up to one hundred percent, which has resulted in delayed payments.
“We are going back to the original concept of the projects and the necessity of any additional works and also see how we get a fair deal, expecting an endorsement from the Ministry of what is not acceptable to Nigerian Society of Engineers is not possible“ the Minister said.
Umahi also noted that “ Mr President understands road infrastructure, If I come before him with a contract of N44B reviewed to N144B contract sum , I must be able to provide details of how the cost came about.”
