Minister of Works David Umahi has refuted media reports suggesting that the Federal Executive Council (FEC) has suspended inherited ongoing projects. In a statement issued by his Special Adviser on Media, Uchenna Orji, Umahi clarified this during an interactive session with contractors.
Umahi described the reports as misleading, asserting that neither President Bola Tinubu nor the FEC has instructed the halting of inherited projects. He emphasized that the Federal Government is open to reviewing contracts and adjusting costs for ongoing projects due to the significant rise in contract expenses caused by the current economic challenges.
However, Umahi noted that any adjustments would depend on the availability of funds. He attributed the decision to review and potentially increase funding for inherited projects to President Buhari’s commitment to completing all federally funded road projects across the country.
Umahi explained, “It was President Buhari’s exceptional generosity that directed the revitalization of all inherited projects through appropriate budget allocations. He pledged to explore additional funding avenues, even beyond the budget, through the National Assembly.”
Regarding future funding, Umahi stated, “We are currently reviewing projects based on fund availability and will propose them to FEC. Projects nearing 80% completion will be prioritized in subsequent budget allocations to ensure their timely completion.”
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Furthermore, the Minister highlighted FEC’s directive for the Ministry of Works to collaborate with the Ministries of Finance and Budget & National Planning to submit accurate budget estimates for the 2025 fiscal year. This directive aims to ensure that projects which were not adequately budgeted for but are nearing completion receive necessary funding.
Umahi also addressed issues related to Variation on Price (VOP), stating that projects awarded in 2024 will not be eligible for VOP unless market conditions drastically change. He emphasized a policy of non-selectivity in VOP application to maintain fairness.
Additionally, Umahi mandated that contractors working on dualization projects complete at least one carriageway and maintain the other for public use within a specified period. This directive aims to expedite project delivery and enhance public infrastructure.
In closing, Permanent Secretary Yakubu Adam Kofarmata praised the initiative and urged contractors to adhere to the decisions made during the meeting for the benefit of all Nigerians.