The Minister of Works, Sen. David Umahi, announced that the federal government can no longer finance all ongoing projects in the country.
During a press conference on Friday, Umahi mentioned that President Bola Ahmed had instructed him to review all projects nationwide to determine which ones should be prioritized.
Umahi clarified that the government does not intend to abandon inherited projects but will focus on those that are at least 80 percent complete. “The Federal Executive Council has directed us to review projects based on available funds and make proposals to FEC. If a project is about 80 percent complete, we will propose it for further appropriation. Once funds are available, such projects will be prioritized for completion. The president has not stepped down any project.
Regarding new projects, Umahi stated that if an appropriation has not led to at least one kilometer of work being completed, the government will not proceed with it. “FEC is concerned about this issue. We cannot have N500m in the budget for a project that requires N50bn or N100bn and go ahead to award such a project. We have been instructed not to do so.”
He added that contractors unwilling to accept the new terms should terminate their contracts. Umahi also criticized the politicization of road projects, where lawmakers push for projects in their communities despite insufficient government funds.
“There is a political angle to awarding contracts, with politicians pressuring the ministry to announce projects in their constituencies or communities. If we continue like this, we are just helping the contractors as the available funds are insufficient, and when given to them, they do nothing,” he said.