Emmanuel OchayiFederal Minister of Works, Dave Umahi, presented an overview of the Ministry’s ongoing 2,097 road projects nationwide during a budget defense session held at the National Assembly.
Revealing the figures, Umahi shed light on the financial complexities and challenges impacting the progress of these critical infrastructural endeavors.
Umahi disclosed the vast scope of the projects, totaling a contract sum of N13.8 trillion, with N4.77 trillion certified to date. However, he clarified that as of November 2023, only N3.14 trillion had been disbursed for these initiatives.
Categorizing the projects based on different funding mechanisms, Umahi detailed how various funds, such as the Presidential Infrastructure Development Fund (PIDF), Sovereign SUKUK Fund, Nigerian National Petroleum Company Limited (NNPC), and the Road Infrastructure Development & Refurbishment Tax Credit Scheme, were instrumental in financing different segments of the road projects.
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He emphasized that despite significant funding achievements under these mechanisms, gaps remained, impacting critical projects like the Lagos-Ibadan Expressway, Abuja-Kaduna-Kano Road, and the Second Niger Bridge. Lack of funds has hindered the completion of these projects, thereby affecting their full functionality.
Additionally, Umahi highlighted the role of the NNPC in financing road projects, revealing the financial shortfalls amounting to trillions for Phase I and Phase II funded projects.
He also unveiled the contributions made by companies leveraging tax credits through the Road Infrastructure Development & Refurbishment Tax Credit Scheme, indicating the execution of 21 projects amounting to N1.338 trillion under this program.
Moreover, the minister disclosed the involvement of multilateral loans and grants from institutions like the African Development Bank and the China Exim Bank, specifically targeting four major highway and bridge projects.
In his address, Umahi underscored the critical need for sustained funding and collaborative efforts to bridge the financial gaps and ensure the timely completion of these crucial road projects, essential for national development and connectivity.
When questioned about the challenges faced in ensuring timely project completion, Minister Umahi reiterated, “The funding gaps remain a significant hurdle, constraining the completion of these vital road projects, impacting connectivity and economic progress across the nation. We require a concerted effort and increased financial commitments to overcome these challenges and realize the full potential of these infrastructural initiatives.”
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