Why we’re not proposing new projects for 2025 -Umahi
…says 4,000 ongoing projects will require N16trillion to complete
The Minister of Works, Engr. David Umahi, has declared that the Ministry will not propose new projects for the 2025 fiscal year unless otherwise directed by President Bola Tinubu.
This, he said, is in order to reduce, if not eliminate, the incidence of abandoned projects.
He announced this during a media briefing to mark his first year in office, in Abuja, on Thursday.
Umahi explained that the ministry was constrained to take this course of action in the light of current realities.
This, he said, was taking into account the number of inherited and ongoing projects which have a funding gap of over N16 trillion.
According to the minister, “The Present administration inherited a total of 18, 932.50 Km of ongoing projects (roads) with a total of 2,064 number of contracts.
“The value of inherited ongoing projects is N14,424 trillion. Of this amount, N4.734 trillion was certified and the amount paid is N3.122 trillion while the amount owed contractors for certified works is N1.612 trillion.
“The funding gap to complete all inherited projects is about N13 trillion as at May, 2023 and will be more than N16 trillion, when all projects are reviewed in line with current market realities.
He further said, “Due to the removal of fuel subsidies and the floating of the Naira though it is a very sound economic decision of this administration and considering the fact that some of the projects have lingered to between 5 to 18 years, consequently, the projects are being reviewed to match with current market realities.
He however said this excludes projects awarded under the current dispensation.
Unahi said, “We are not going to propose new projects for the 2025 fiscal year unless otherwise dictated by Mr. President.
“I’m going to tell the Ministry of Finance to provide funds for us to complete ongoing projects.
“Right now, we have over 4,000 ongoing projects and a funding gap of N16trillion, most of them were inherited by this administration.
“Some of these projects were awarded when the Naira exchanged for N150 to $1 USD.”
The minister further explained that inflation has contributed significantly to the rising cost of most of these projects and it would be in the nation’s best interest to ensure the completion of most, of not all ongoing projects.
He reiterated President Bola Tinubu’s commitment to fulfilling his campaign promises in order to leave Nigeria better than he met it.
Umahi explained that the current administration had initiated record breaking legacy projects in the road sector, had executed several emergency projects to repair roads and bridges destroyed by flood and other natural disasters.
