There’s no FEC directive to step down inherited ongoing road projects – Umahi
By Ukpono Ukpong
The Minister of Works, Engr. David Umahi, has debunked recent ‘misleading’ media reports suggesting that the Federal Executive Council (FEC) had stepped down inherited ongoing projects.
Engr. Umahi, during a press conference held at the Ministry clarified that neither President Bola Tinubu nor the FEC had given any directive to halt these projects.
He emphasized the commitment of President Tinubu’s administration to the completion of all inherited and ongoing federal road projects across the nation.
This is as he noted that the President’s directive was motivated by his exceptional magnanimity and dedication to infrastructure development as part of the Renewed Hope administration’s vision for economic recovery.
“The decision for windows to review and augment the cost of inherited ongoing projects was borne out of Mr. President’s magnanimity,” Umahi stated.
He explained that President Tinubu had instructed that all inherited projects be revitalized through appropriate funding mechanisms, including seeking support from the National Assembly beyond the usual budgetary provisions.
The Minister assured contractors that the federal government is willing to engage in contract reviews and cost augmentations for ongoing projects.
While stressing that such reviews would be subject to the availability of funds, the minister said such move is aimed at addressing the geometric rise in the cost of contract elements due to the challenging economy inherited by the current administration.
Umahi highlighted the importance of prioritizing projects that have reached significant completion milestones.
“If such a project has attained about 80% completion, then we make a proposal to FEC that in subsequent appropriations, money should be made available, and such projects should be made a priority, so that they could be completed,” he explained.
The Minister further addressed the disparity between the increase in contract costs and the available funding for some projects.
He assured that the Federal Ministry of Works is satisfied with the unit costs offered, which align with current market prices.
“Some of these projects were awarded 18 years ago, some 10 years ago, 5 years ago,” Umahi noted, underscoring the need for reviews due to changes in economic conditions over time.
Umahi reiterated the federal government’s determination to innovate funding and budgeting processes to accelerate road infrastructure development.
He mentioned that FEC had directed the Ministry of Works to collaborate with the Ministries of Finance and Budget & National Planning to present accurate budgetary estimates for the 2025 financial year. This effort aims to ensure that projects not appropriately budgeted for but with significant completion milestones receive the necessary funds for timely completion.
Addressing the issue of Variation on Price (VOP), the Minister made it clear that projects awarded in 2024 would not attract any VOP. “We’ve made it a policy that such projects cannot get any variation,” Umahi stated. However, he acknowledged that if unforeseen circumstances significantly affect market prices of construction materials, the government would revisit the issue of VOP without bias.
The Minister also directed that contractors working on dualization projects must complete one carriageway first and make it available for public use while maintaining the other carriageway. This policy aims to enhance public accessibility and safety during the construction period.
Permanent Secretary Yakubu Adam Kofarmata praised the Minister’s initiative and urged contractors to embrace the directives for the benefit of all Nigerians. He highlighted the importance of the meeting’s message in ensuring the timely and efficient completion of road projects, which are crucial for the nation’s economic recovery and development.
