The Nigerian government is grappling with a significant financial challenge as it seeks to complete inherited road projects across the country.
The Minister of Works, Engr. David Umahi, announced that over N19 trillion is now required to finish these projects, a substantial increase from the N16 trillion estimated in August 2024.
This escalation is attributed to economic pressures, including the depreciation of the naira in the foreign exchange market and the removal of fuel subsidies.
At a recent press briefing, Umahi explained, "The President inherited a total of 2,604 projects as of May 29, 2023. The total cost was N13 trillion, and there was a debt to contractors of N1.6 trillion."
He further noted that the variations due to the floating of the naira have significantly impacted project costs, leading to the current estimate of over N19 trillion.
Despite these financial hurdles, President Bola Tinubu's administration is committed to keeping all projects active.
The government is exploring funding options from both internal and external sources, including loans, to ensure the continuation of these critical infrastructure developments. Umahi emphasized the importance of these projects, stating that roads and bridges are vital for unleashing economic benefits for Nigerians.
Comentarios