…Minister Debunks Reports of FEC Halting Inherited Projects**
In alignment with President Asiwaju Bola Ahmed Tinubu’s vision for road infrastructure and economic recovery, the Honourable Minister of Works, Sen. Engr. Nweze David Umahi, assured contractors that the Federal Government is open to reviewing contracts and increasing costs for ongoing inherited projects, contingent on fund availability. This announcement was made during a meeting with contractors at the Ministry’s headquarters in Abuja on July 12, 2024.
According to a statement by Hon. Barr. Orji Uchenna Orji, Special Adviser (Media) to the Honourable Minister of Works, the Minister emphasized that the decision to review and augment project costs stems from President Tinubu’s commitment to completing all inherited and funded federal road projects nationwide. He highlighted the President’s directive to revive these projects through appropriations and explore funding options outside budgetary provisions via the National Assembly.
Minister Umahi clarified, “What we are doing now is to review the projects in line with the availability of funds and make a proposal to FEC. If such a project has attained about 80% completion, we will propose that in subsequent appropriations, money should be allocated, making these projects a priority for completion.”
He refuted misleading media reports claiming that the Federal Executive Council (FEC) had stepped down ongoing inherited projects. He stated, “Neither the President nor FEC directed that inherited projects should be stepped down. The Federal Executive Council noted the review we are conducting and the disparity between the increased contract costs and available funding.”
The Minister reiterated the government’s commitment to innovative funding and budgeting strategies to accelerate road infrastructure development. He noted that FEC had directed the Ministry of Works to collaborate with the Ministries of Finance and Budget & National Planning to prepare accurate budget estimates for the 2025 financial year for projects near completion but not adequately funded.
Addressing the issue of contract variations, Minister Umahi stated, “All projects awarded in 2024 will not attract any Variation on Price (VOP). However, if market prices for construction materials significantly change, we will revisit the issue of VOP.”
For dualization projects, the Minister directed contractors to complete one carriageway first and make it available for public use, while maintaining the other carriageway during the construction period.
Permanent Secretary Yakubu Adam Kofarmata, PhD, praised the initiative and urged contractors to embrace the meeting’s message for the benefit of Nigerians.
