The Federal Government has introduced a new policy requiring road contractors to work on-site for at least two weeks before receiving mobilisation fees.
The Minister of Works, David Umahi, announced this during an inspection of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, as contained in a statement published on the ministry’s website on Sunday.
Umahi explained that the policy aims to ensure that only committed contractors handle Nigeria’s road projects, thereby reducing cases of abandoned construction sites.
He highlighted the progress made by Messrs Infoquest International (Nig.) Limited, which had advanced significantly on its section of the road despite not receiving the traditional 30% upfront mobilisation fee.
“According to the Minister, the company, Messrs Infoquest International (Nig.) Limited has proven its capacity to deliver quality jobs on record time, seeing how far they have gone within a month of signing the contract.
“He stressed that the Ministry’s decision that every contractor must be at the site and working for at least two weeks before the mobilisation fee is paid, is the way to go for sustainable project development and delivery,” the statement read in part.
The statement further highlighted that Joseph Abougaoude, Managing Director of Infoquest International, affirmed the company’s commitment to delivering the contract within schedule despite the absence of upfront payment.
More insight
Additionally, the statement revealed that Umahi provided updates on the Abuja-Kaduna-Zaria-Kano Dual Carriageway, a key economic corridor linking Nigeria’s northern and southern regions, as well as neighboring countries like Cameroon, Niger, and Benin.
- He disclosed that the final section of the project, Zaria-Kano, would soon be approved and awarded.
- The Works Minister also addressed the recent termination of Julius Berger Nigeria Plc’s contract on the project, citing delays as the reason.
However, he clarified that the company remained engaged in other federal road projects, including the Bodo-Bonny Road and major bridge construction in Lagos.
What you should know
The announcement that road contractors must mobilize to the site at least two weeks before receiving mobilisation fees follows the Federal Government’s introduction of stricter payment conditions for contractors.
- The Minister of Works, David Umahi, recently unveiled a new policy requiring contractors to provide an active Advance Payment Guarantee (APG) and a valid performance bond before receiving payments from the Ministry of Works.
- An APG ensures that funds advanced to contractors are used solely for the project, while a performance bond guarantees that the contractor will complete the project as agreed.
- These measures aim to enhance accountability, minimize project abandonment, and improve the quality of road construction across Nigeria.
