In a significant move aimed at revitalizing Nigeria’s road infrastructure, Senator David Umahi, the Minister of Works, has proposed a substantial increase in the 2024 budget allocation for the Ministry. The proposed boost seeks to elevate the budget from N657.22 billion to a formidable N1.5 trillion, a move that was presented during the defense of the 2024 Budget estimate for the Ministry of Works before the National Assembly Joint Committees on Appropriation.
Highlighting the critical importance of this budgetary adjustment, Senator Umahi underscored that the additional funds would play a pivotal role in facilitating the completion of at least 10 crucial roads and bridges in each of the six geo-political zones across the country. The emphasis on geographic inclusivity reflects the Minister’s commitment to fostering balanced development and connectivity throughout Nigeria.
Furthermore, Senator Umahi advocated for the creation of an Emergency Fund, amounting to approximately 30% of the Budget Provision, aimed at addressing unforeseen emergencies that commonly occur on the road network, particularly during the rainy seasons. This strategic allocation is intended to enhance the Ministry’s responsiveness to unexpected challenges and ensure the durability of road infrastructure.
Addressing the impact of inflation on road projects, the Minister expressed concern about numerous contractors being presently out of sites due to the exhaustion of their contract Variation of Prices (VoPs). To counter this issue, Senator Umahi proposed a comprehensive review of all VoPs and augmentations for ongoing projects. He suggested converting owed amounts to contractors into Promissory Notes, aligning the projects with the current economic realities of the construction industry.
Additionally, the Minister urged for the urgent review of all certified debts to contractors, emphasizing the potential conversion of these debts into Promissory Notes. This strategic move aims to enable a more focused utilization of any appropriated funds to pursue the Ministry’s set objectives efficiently.
In the context of inflation, Senator Umahi emphasized, “It will be good that all VoPs and augmentations of all the projects are reviewed, and those that are owed be converted to Promissory Notes, while the unit rates regime will take effect on contractors in line with the current realities of the construction industry.”
To further augment the available funds, the Minister called for an expanded participation of eligible companies in the Road Tax Credit Scheme. Encouraging more private sector interventions, he suggested that companies front-load their tax liabilities to address the current challenges faced in road infrastructure development.
Elaborating on the significance of an enhanced road network in driving socio-economic growth, Senator Umahi disclosed the inclusion of 693 new projects in the 2024 budget to improve road network connectivity. Acknowledging the challenges posed by insufficient funds, he detailed the Ministry’s prioritization of multiple projects for completion between 2022 and 2024.
As part of the presentation, the Minister provided a summary of the 2023 appropriation, which amounted to N534.4 billion for the Ministry of Works and Housing and its parastatals at that time. This historical context emphasizes the incremental approach taken by Senator Umahi to address the persistent challenges in Nigeria’s road infrastructure, showcasing a strategic vision aimed at fostering sustainable development and economic prosperity.
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