Nigeria's Minister of Works, Dave Umahi, has revealed that the Federal Government requires over ₦16 trillion to complete ongoing road projects inherited from previous administrations.
In a recent briefing in Abuja, Umahi disclosed that as of May 2023, the government had taken on 18,932.50 kilometers of road projects involving 2,064 contracts, valued at ₦14.42 trillion.
However, due to economic changes such as the removal of fuel subsidies and the floating of the naira, the funding gap has surged to ₦13 trillion and is expected to exceed ₦16 trillion.
"The funding gap to complete all the inherited projects is about ₦13 trillion as of May 2023 and will be more than ₦16 trillion when all projects are reviewed, in line with current market realities," Umahi stated.
He emphasized that these economic decisions were necessary, as some projects have been pending for five to eight years.
To address this financial shortfall, Umahi highlighted several alternative funding mechanisms.
These include the Presidential Infrastructure Development Fund (PIDF), Sovereign SUKUK issued by the Debt Management Office (DMO), and Public-Private Partnerships (PPP).
"The old traditional method of funding highway projects through annual budgetary provisions has proven inadequate," he noted.
Umahi also mentioned the Highway Development and Management Initiative (HDMI) under the PPP Unit, aimed at attracting sustainable investment and funding for road infrastructure development.
This initiative seeks to maximize the use of assets along the Right of Way (ROW) and bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of federal highways.
Additionally, the minister outlined four legacy highway projects selected under the Renewed Hope Agenda of the current administration.
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