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Home Sectors Real Estate and Construction

FG unlikely to refund states for works done on federal roads for now – Dave Umahi

Aghogho Udi by Aghogho Udi
September 1, 2023
in Real Estate and Construction, Sectors
FG unlikely to refund states for works done on federal roads for now – Dave Umahi
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The Federal Government, under the leadership of Works Minister Dave Umahi, has disclosed that it is presently unable to reimburse State Governments for their expenditures on Federal Road projects.

This announcement was made during Minister Umahi’s visit to Governor Seyi Makinde of Oyo State in Ibadan. 

  • During his two-day working visit to Oyo State, Minister Umahi stated, “The economy right now will not permit any commitment by the federal government. However, records of such road projects done by the states would be kept and could be revisited when the economy improves.” 

He went on to commend Governor Makinde for his administration’s commendable intervention in road projects, which has effectively alleviated the suffering of the populace. Minister Umahi emphasized that “Be it state or federal roads, we are one government.

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The aim and oath of office is to place the welfare of the people ahead of any other interest.” 

Embrace Concrete Pavement Technology 

Additionally, the Minister encouraged Governor Makinde to consider embracing Concrete Pavement Technology in road construction projects, citing its superior durability and cost-effectiveness compared to asphalt roads.

He cited the success of road projects with concrete pavement in Lagos State and revealed that during his tenure as Governor of Ebonyi, he oversaw the construction of nearly 95% of road projects using concrete pavement. 

Explaining the purpose of his visit to Oyo State, Minister Umahi revealed that he was inspecting federal government road projects in the South West region, having previously met with all contractors handling road projects in the North West, North Central, and South West regions in Abuja.

He expressed his desire for greater cooperation from the Oyo State government in achieving success on federal government projects within the state. 

Gov. Makinde’s response 

In response, Governor Makinde expressed his appreciation for the minister’s visit and commended Umahi’s track record during his tenure as Governor of Ebonyi.

  • He emphasized his administration’s commitment to road projects as a crucial driver of economic development. Governor Makinde provided an example of their dedication, stating, “For example, the 34km Oyo-Iseyin road took us two years to get approval from the federal government, and we awarded it to the contractor immediately we secured the approval because of its importance to the agri-business of the state.” 
  • He continued, “The road will be inaugurated on Sept. 15 by the former President Olusegun Obasanjo. We are not asking for a refund immediately, but the records are there, and we will give it to the Minister.”  

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Tags: Umahi
Aghogho Udi

Aghogho Udi

My name is Aghogho Udi, a writer, journalist, and researcher, deeply intrigued by the political economy of Nigeria and the broader African context. My focus lies in shedding light on the intricate connections between macroeconomics and politics, offering valuable insights that foster comprehension of Africa's prevailing economic landscape and the world in general.

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