Home News FG Raises Review Panels on N1.5 Trillion on Works Contract Debts

FG Raises Review Panels on N1.5 Trillion on Works Contract Debts

by News Desk
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The Federal Government has set up six committees to verify the authenticity of the N1.5 trillion debt it incurred on road construction across the six geo-political zones.

A committee is assigned to each of the zones to examine outstanding certified certificate debts generated before and after May 29, 2023.

The verification will begin tomorrow and end December 22, according to a statement by Uchenna Orji, Chief Press Secretary to Works Minister Dave Umahi.

Orji explained that the committees were established after a budget defence session between Umahi and the ministry’s directors ahead of their appearance before the National Assembly Joint Committee on Works.

Orji,  who is also a former Ebonyi State Information Commissioner, revealed this shortly after a budget document made available to The Nation showed that the ministry proposes N215 billion for new road projects next year. 

Orji said Umahi reaffirmed his commitment to road infrastructure development in line with President Bola Tinubu‘s Renewed Hope Agenda while defending the ministry’s 2023 and 2024 budgets before the joint committee.

He said the minister expressed worry over the N1.5 trillion debts inherited from the previous administration.

Highlighting the necessity for contract review in light of inflation, Orji urged the contractors owed by the Federal Government to engage the committee assigned to their zones for a thorough review. 

The statement reads in part: “The committees will also review the approved and unapproved variation of prices and all augmentations that were approved or are yet to be approved and make recommendations to the ministry’s management.

“The ministry has exposed these debts and all reviews in the ministry to Mr President’s economic team and also to the Federal Executive Committee on road sector funding.

“It is believed that the internal works through these constituted committees will help them to use external consultants to reverify the works so that concrete decisions will be made to move the ministry forward.

“Contractors who are being owed are requested to approach these committees with all documents to back up their claims from Tuesday 12th, 2023 to Friday, 22nd of December 2023 from 9 am to 7 pm at the Honourable Minister’s Conference Room, Federal Ministry of Works, Headquarters, Mabushi, Abuja.”

Out of the ministry’s  N547,553,626,765 estimates for road construction, repairs, and rehabilitation next year,   more than N179 billion is designated for new projects. The balance is for ongoing projects and personnel costs.

In the proposal, the government allocated funds ranging from N1 million to N3 billion for the different projects.

One of the new projects is the Lagos-Abuja Superhighway with a take-off sum of N500m.

Others are the improvement of electricity supply to Shagari town, Sokoto state; improvement of electricity supply to Argungun-Yabo-Sokoto community, Yabo town Sokoto state; provision of traffic warning lights and associated infrastructure on Federal roads in Ado Iga road, Benue state; provision of traffic warning lights and associated infrastructure on federal roads in Ogbadibo lga, Benue state; provision of traffic warning lights and associated infrastructure along Zuba bypass; and provision of traffic warning lights and associated infrastructure Zuba bypass, Dakiliko – Tungan Maje end

The proposal for new road projects in the Southwest includes the rehabilitation of old Ondo – Benin Road (Lagos garage to Epe garage), Ijebu Ode in Ogun State at N442 million; emergency repair of Elebu – new Garage Road (off old Lagos Road, Ibadan in Oyo State), N235 million; emergency repair of Iseyin – Ipapo Okaka Saki Road also in Oyo State,  N225m; emergency repair of Saki-Ilesha-Baruba Road along Ago Are-Saki-Ilesha-Baruba  Road route in Oyo State,   N245 million;    repair of Okeado-Mokola along Dugbe-Mokola-Ojoo Road in Oyo State at N235 million; repair of Gbemi – Dogo Road along Ogbomoso – Igbeti Road in Oyo State at N244 million; special repairs of flood-prone sections along Sekona-Ife road in Osun State at N233 million; and special intervention on flooding along Iwo – Ifeodan road (Oyo state boundary) in Osun State at N439m.

In the  Southsouth and Southeast,   new projects to be initiated next year are the limited rehabilitation of Ama John – Umuahihie – Uzoagba Road (phase11) in Imo State at N598 million; limited rehabilitation of Abakaliki – Oferekpe Road in Ebonyi State,  N455 million; limited rehabilitation of Abakaliki – Orie Ogbe – Ntsokkara – Oferekpe Road,  N494 million and limited rehabilitation/construction of Okigwe – Afikpo – Cross Rivers State border (two-kilometre spur to Otu Nkalu beach) in Ebonyi State,   N459 million.

There are also the limited rehabilitation of 9th  Mile – Ogbeda – Ugwunani – Aku – Nkporogwu – Uzowani Road in Enugu State, N481million; limited rehabilitation of township roads (trans-Ekulu area) in Enugu State N465 million; limited rehabilitation of Oba – Nnewi – Arondizogu Road, N343 million; and limited rehabilitation of Ama Nkwo – Nkwo Alabo Road in Obilokupu, Ozoagba in Imo State, N490 million.

Other new projects in the South-east include the provision of culverts and drains at flood-prone areas on the federal road network in the Southeast at N3 billion as well as emergency repairs and reinstatement of washout and critical sections along the Onitsha – Owerri dual carriageway at N2.4 billion.

Also, there is a budget allocation of N624.2 million for the limited rehabilitation of Umuahia (Isicourt) – Aba Road; limited rehabilitation of Aba – Ikot Ekpene Road (Bata junction – Ogbor Hill – Opobo Roundabout)   at N515.4 million; reinstatement of the flooded Enuagu – Umugama – Amaigele Road in Ukwulu, Anambra State,   N451.1 million;   emergency repairs of critical sections on Amawbia – Nise-Agulu-Ekwulobia – Uga  Road Anambra State,   N481.6million; and limited rehabilitation of Abakaliki – Oferekpe road (km 0+000- km 4+000),   N450.3 million.

Limited rehabilitation of washout in a section of Iroakhor – Apana Road in Etsako West LGA in Edo State will cost   N510 million; repairs of critical failed sections along Iruekpen – Sabogida -Ora – Ifon Road   N626 million; limited rehabilitation of washout in another section of Iroakhor -Apana Road in Esako West LGA at N362 million; and reconstruction of flood control structures along Uromi-Onewa Road, N343 million.

The budget proposal allocates N2 billion each to projects such as the reconstruction and asphalt overlay of Fanari-Lokobi-Yarume-Jakanadu Road  in Sokoto state; construction and asphalt overlay of Suru-Sangelu-Afadama road, in Kebbi state; reconstruction and asphalt overlay of Buni Garii-Gulani Road in Gujba Local Government, Yobe State; reconstruction of Besse junction to Bagudu Road in Kebbi State; construction of Yandev-Buruku Road in Benue State; reconstruction  and  asphalt overlay of Poeship (Bakin Kogi Shendam) Ngutugut-Demshin-Mararaba-Demshin Road, Plateau State  and  construction of Unguwar Iliya Bagudu Kwantakaran-Tsiga-Bakori Road with Kadabo bridge in  Kafur lga, Katsina State

While the reconstruction and asphalt overlay of earthworks and culverts at Kanuwa-Balkore-Jingine-Sabon Birna road in Kware lga Sokoto State was allocated N1.5 billion,    that of    Ugep/Alesi Road got N1billion.  The  Eegbeda to Lalupon (through Owobale and Erunmu)  road is estimated to cost    N750 million. 

The reconstruction of the Tsamiya/Wara Road in the Nigeria/Benin Republic border in Baguio LGA, Kebbi State was allocated   N500 million. 

The government also intends to reconstruct the  Greater Umuneke Ring Road, creating vital access for Udi-Agbudu-Obinagu-Umuabi-Umuaga-Nachi-Obinofia-Enugu-Onitsha at  N400 million.

The proposal also contains N4 billion for the construction and equipping of Ultra-modern Conference Centre blocks A, B, C, and D along Damargu Secretariat Phase III.

 There is also provisions for traffic warning lights and associated infrastructure on federal roads in Ado Iga Road in Benue State; provision of traffic warning lights and associated infrastructure on federal roads in Ogbadibo lga, Benue state; provision of traffic warning lights and associated infrastructure along Zuba bypass; provision of traffic warning lights and associated infrastructure Zuba bypass, Dakiliko – Tungan Maje end; and provision of traffic warning lights and associated infrastructure along Lafia East – Markudi expressway, Lafia end, Nassarawa State.

Ongoing projects to get necessary attention are the Lagos-Kwara-Kaduna Road,  N2 billion and counterpart funding for the construction of a joint border bridge at Mfum/Ekok under the Nigeria/Cameroun international highway and transport facilitation programme at N738 million.

In the Northcentral, there are provisions for the rehabilitation of six and reconstruction of two sections of the Lokoja -Abuja Road at N7.5 billion respectively as well as the provision of culverts and drains at flood-prone areas on federal road networks in the zone at N3 billion.

(The Nation)

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