FG Requires ₦16 Trillion To Complete Road Projects Nationwide – Minister Umahi

FG Requires ₦16 Trillion To Complete Road Projects Nationwide – Minister Umahi

The Minister of Works, Mr. David Umahi, has revealed that the federal government requires ₦16 trillion to close the financial gap necessary for completing road projects nationwide. According to Umahi, the current administration, led by President Bola Tinubu, inherited a total of 18,932.50 kilometers of ongoing road construction and 2,064 contracts.

Speaking to the press on Thursday, Umahi attributed the increased financial requirement to the removal of the fuel subsidy and the floating of the naira. He explained that while the inherited road projects were initially valued at ₦13 trillion as of May 2023, the cost has now escalated to more than ₦16 trillion due to the need to adjust for current market realities.

“This is due to the removal of fuel subsidies and the floating of the naira,” Umahi stated. “It is a very sound economic decision by this administration, considering the fact that some of the projects have lingered for between five and eight years. Consequently, the projects are being reviewed to match current market realities. This position excludes all the new projects under the Renewed Hope Agenda and the four legacy projects.”

**Breakdown of the Financial Requirements**

The former governor of Ebonyi State provided a detailed breakdown of the funding allocated to various road projects in recent years. These include ₦100 billion in 2018, ₦162.55 billion in 2020, and ₦210.56 billion in 2021. In 2022, ₦110 billion was approved for 2,812 kilometers of road, while the approved 2023 SUKUK provision stood at ₦250 billion.

“The projects are spread across the six geopolitical zones of the country,” Umahi added.

He further noted that the federal government might refrain from embarking on new road projects in 2025, focusing instead on securing funds to complete all ongoing and inherited projects.