The Federal Government has proposed a 30% advance payment from Nigeria LNG (NLNG) to accelerate the Bodo-Bonny road project in Rivers State.
This follows the Federal Executive Council’s (FEC) approval to increase the project’s funding to N280 billion.
The Minister of Works, David Umahi, made this announcement during a meeting with Julius Berger (Nig.) Plc, as shared in a statement on the Ministry’s website.
He stressed the importance of Julius Berger mobilizing in multiple locations to meet the extended deadline of September 2025, with work to proceed from at least three sites.
Umahi noted that the 30% advance payment aims to counter inflation and ensure steady progress, maintaining the fixed contract sum of N280 billion and preventing further delays.
He remarked, “We don’t think we have any issue. We’ve agreed on the N280 billion, which is the new contract sum that is fixed, and then for a 12-month completion period; that is an additional 12 months. So, we want you to mobilize in a minimum of three locations. So that within these 12 months, we’ll be able to finish the job.”
He went further to state, “In the letter to NLNG, we have to also propose 30% advance payment, so that they will be able to have enough funds to mitigate inflation and any form of variation.”
The statement further noted that the meeting concluded with a formal handover of the updated Letters of Award to Julius Berger, with terms stating that the contract is fixed, firm, non-transferable, and will be automatically terminated at the end of the agreed period unless formally reviewed by the Ministry.
What you should know
The Bodo-Bonny project, initially awarded in 2014 for N120 billion and later revised to N199.9 billion in 2021, is designed to significantly enhance regional connectivity by linking Bonny Island to the mainland of Rivers State through a network of vital bridges and roadways.
The 34-kilometer project features the construction of 13 bridges, including three major structures—such as a 1,000-meter bridge spanning Opobo Creek—and nine mini-bridges, along with a pipeline-spanning bridge. This infrastructure is expected to facilitate easier access to Bonny Island, improving transport links and supporting economic activities in the region.
Originally, the project’s funding was structured as a joint effort between the Federal Government and Nigeria LNG (NLNG), with each party contributing 50% of the costs. However, construction faced setbacks in 2021 when Julius Berger requested an upward revision of the budget, leading to a temporary halt in progress.
The recent approval by the Federal Executive Council (FEC) to raise the project’s funding to N280 billion, alongside the proposed 30% advance payment from NLNG, has now brought new momentum to the initiative.
These financial adjustments are aimed at mitigating inflation and other economic challenges, ensuring that the construction can proceed steadily toward its new completion deadline of September 2025.
With these renewed efforts, the project is poised to achieve its goal of improving access and stimulating development across the region.
