The Minister of Work, Dave Umahi, has revealed that the Federal Government is ready to clear the N1.5 trillion debt owed to contractors of federal highways across the country.
Umahi disclosed this at a meeting with contractors of federal highway projects at the Ministry of Works headquarters in Mabushi, Abuja, on Thursday, as the News Agency of Nigeria reported.
Earlier, in December 2023, Nairametrics reported that the Minister of Works disclosed that the past administration led by former President Muhammadu Buhari left a significant debt of N1.5 trillion on unpaid certificates for road projects.
While providing insights on the Federal Government’s plans to clear the debt, the Works Minister advised the contractors to execute the highway construction projects they are currently handling seriously.
Umahi noted that the Federal Government had set up a verification committee to screen contractors’ certificates and recommend eligible contractors for payments.
- “I want to assure you that every verification made will be paid; we are going to have automated payment system.
- “You are requested to come up with proof of how these debts are generated.
- “The earlier you do it, the better; the economic team and Federal Executive Council will expect us to give them facts. I assure you that every verification that has merit will be paid, but it shall be on a first-come, first-served basis,” Umahi explained.
The minister also expressed dissatisfaction with contractors closing up construction sites during the festive season when the traffic on the roads was high. Umahi emphasized that the Federal Government would not tolerate contractors closing up sites at a critical time of the year.
- He said: “We are almost in the middle of January. Most of you closed sites on Dec. 15 to reopen on the 15th of January, losing a most valuable one month that would not be allowed to happen again.
- “That is not good; we have to agree if you have to take off, you can take one week, but to close the site at the critical time of the season to observe festivities will not be allowed anymore.
- “Going forward, we are going to track our projects. On our part we are addressing late payments; we mean business in 2024, and we want to work with serious contractors.
- “Contractors of Lokoja-Benin Road should please return to the site, or their contracts will be terminated.”
Stance on the use of asphalt for road construction
Dave Umahi also spoke about using asphalt for road construction projects nationwide.
He said that the Federal Government did not wholly ban the use of asphalt as pavements; the government’s preference for concrete is a deliberate effort to cut costs associated with the escalated prices of the former.
- “We have not banned the use of asphalt, but it is to moderate the escalation of asphalt prices.
- “And in 2024, going forward, some projects will still be on asphalt but their shoulders will be on concrete while some will be fully on concrete.
- “There are some places that we must make our roads fully on concrete,” he said.
Recall that about five months ago, Nairametrics reported that the Minister of Works, Senator David Umahi, that only concrete pavement would be allowed for road construction projects across the country. He said the alternative to concrete, asphalt, was more expensive and produced poor-quality roads.
Contractors resisted the announcement to use only concrete in road construction, leading them to stall the completion of several roads, including the Benin-Warri dual carriageway.
After a few months of resistance, Nairametrics reported that Umahi said the government never wholly banned using asphalt in road construction. Instead, the Ministry of Works established a new policy to provide guidelines on using concrete and asphalt pavements in road construction.
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Furthermore, Umahi said the Federal Government had established a plan to complete 150 kilometres of roads in the 36 States of the federation and the Federal Capital Territory, Abuja.
He further clarified that the target excluded the palliative work and other special projects embarked upon by the Federal Government like those of the SUKUK, Presidential special funds, or the Tax Credit Scheme.
- “Nigerians will want to see us complete 150km in each of the 36 states and the FCT and
- “You will see the total number of roads completed and that will be a good way to start.
- “We are not talking about the palliatives. And if it is a dual road, is just 75 km so, let’s just start and I am sure that we will get there,” he said.
Umahi pointed out that a 5,550-kilometre road network target was the minimum projection for the year. Also, the minister reiterated that only registered and certified COREN members are allowed to be on sites.
As part of the Federal Government’s efforts to remove bottlenecks delaying road construction in the country, Umahi said the Federal Government had divided the projects into 12 zones, with each zone to be headed by directors of special duties.
Speaking further, the minister disclosed that President Tinubu had directed a review of the Federal Road Maintenance Agency (FERMA) to make the agency more effective regarding highway projects nationwide.
Umahi also disclosed that the Federal Government was working to introduce solar lights and hire retired police and military personnel to secure the roads. According to the minister, these measures aim to ensure highways and reintroduce night travel.
In addition, Umahi stated that the Bureau of Public Procurement (BPP) had approved 80 % of the palliative allocation.
