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Nairametrics
Home Sectors Real Estate and Construction

FEC approves N733 billion for Abuja-Kano, Ibadan-Ilorin, and two other roads 

Caleb Obiowo by Caleb Obiowo
March 3, 2025
in Real Estate and Construction, Sectors
FG, States and LGAs share N1.35 trillion as FAAC allocation in June
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The Federal Executive Council (FEC) has approved N733 billion for the completion of four major road projects inherited from the previous administration.

The projects include the completion of the Abuja-Kaduna-Zaria-Kano road, the dualisation of Section Two of the Ibadan-Ilorin road, the dualisation of the Odupani-Itu-Idedem Item road, and the construction of a flyover at Abakpa, bordering the 82 Division in Enugu.

Minister of Works David Umahi announced the approvals while briefing State House correspondents after FEC’s third meeting of the year on Monday, as reported by the News Agency of Nigeria (NAN).

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He stated that the decision followed a rigorous review process to ensure the projects align with the government’s current infrastructure priorities.

“The Federal Executive Council (FEC), at its third meeting of the year on Monday, approved the completion of four road projects inherited from the previous administration, after a rigorous review. 

“Chief David Umahi, Minister of Works, said this while addressing State House Correspondents after the FEC meeting,” the NAN report read in part.

Breakdown of the approved road projects  

Umahi provided a breakdown of the approved projects, highlighting that the largest allocation of N507 billion was awarded for Section 2 of the Abuja-Kaduna-Zaria-Kano road. This section spans 82 kilometers in both directions, totaling 164 kilometers. The contract was secured by infoWest Nigeria Ltd., which is also handling Sections 1 and 3 of the project.

  • He further stated that N147 billion was approved for the dualisation of Section 2 of the Ibadan-Ilorin road in Ogbomosho, Oyo State. The contract, awarded to GRVe Construction Ltd., will be executed using reinforced concrete pavement for enhanced durability.
  • Additionally, FEC approved N55 billion for the dualisation of the Odupani-Itu-Idedem Item-Ikot Ekpene road, which connects Cross River and Akwa Ibom States. The contract was awarded to Decon Construction Nigeria Ltd.
  • The final approval was N24 billion for the construction of a flyover at Abakpa, Enugu, bordering the 82 Division of the Nigerian Army. The project, awarded to CCECC, is expected to ease traffic congestion in the area.

What you should know 

The approval of N733 billion for these road projects follows the Federal Government’s recent introduction of new policies aimed at improving project execution and accountability. These policies will shape how contractors access funds and manage construction timelines.

  • Under the new framework, road contractors must mobilize to the site and commence work for at least two weeks before receiving mobilisation fees.
  • Additionally, they are required to provide an active Advance Payment Guarantee (APG) and a valid performance bond before receiving payments from the Ministry of Works. The APG ensures that advance funds are used strictly for the project, while the performance bond guarantees completion as agreed.

These measures are designed to reduce project abandonment, enhance accountability, and improve the overall quality of road construction in Nigeria.


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Tags: Abuja-KanoFECIbadan-Ilorin
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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