Works Ministry Inherited N1.5trn Debt From Buhari’s Government – Umahi

Works Ministry Inherited N1.5trn Debt From Buhari’s Government – Umahi

The Ministry of Works has announced the formation of a committee tasked with examining the N1.5 trillion debt owed by the federal government to contractors.

In a statement released on Sunday, Senator David Umahi, the Minister of Works, disclosed that six committees, one for each geopolitical zone, have been established. These committees will scrutinize certified certificates generated both before May 29th, 2023, and from that date onward.

The statement, signed by Chief Press Secretary Orji Uchenna Orji, outlined that the committees’ scope also includes a review of approved and unapproved variation of prices, along with assessments of all augmentations that have been approved or are pending approval.

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The committees will subsequently provide 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 re-verify the works so that concrete decisions will be made to move the Ministry forward,” Umahi said.

The Minister highlighted the substantial debt resulting from unpaid certificates inherited from the previous administration, amounting to N1.5 trillion, compounded by anticipated contract reviews due to inflation.

He encouraged owed contractors to approach the committees, providing all necessary documentation to support their claims. The specified period for this engagement is from Tuesday, December 12th, 2023, to Friday, December 22nd, 2023, between 9 am and 7 pm. The venue for submission is the Minister’s Conference Room, 1st floor, Federal Ministry of Works Headquarters, Mabushi, Abuja.

In addition, the Minister emphasized the need for a distinct approach to address the challenges in the road sector, going beyond the budget allocation received by the ministry for the 2024 fiscal year.

“For a developing nation like Nigeria, road sector development is a catalyst for economic development. The road sector has the potential to improve the security sector, agricultural sector, trade and investment, health, education ,and, in fact, every aspect of the development of every nation.”

The Minister expressed gratitude to President Bola Ahmed Tinubu for the dedicated attention accorded to the ministry and for approving the implementation of concrete pavement in a majority of the projects slated for 2024.

He affirmed the ministry’s unwavering commitment to advancing road infrastructure development in alignment with the Renewed Hope agenda outlined by Mr. President.

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