In a significant development aimed at accelerating infrastructure projects nationwide, the Federal Government of Nigeria, through the Ministry of Works, has announced the allocation of ₦431 billion for payment to road contractors. This announcement was made by the Minister of Works, David Umahi, during a meeting with contractors overseeing road dualisation projects and zonal directors of the ministry at its headquarters in Abuja on Thursday.
Minister Umahi also revealed an innovative step to enhance the quality and longevity of road projects across the country. He announced the introduction of a performance bond system, ensuring that all new projects would be guaranteed for a period of 10 years.
Addressing the gathering, Minister Umahi emphasized the government’s commitment to focusing on dualised roads in Nigeria, with an intention to enhance the quality of road infrastructure nationwide. He also shed light on the financial support for ongoing projects, stating, “I want to remind you that the Nigerian National Petroleum Corporation is funding 50 percent of the contract sum, and that funding goes up to 2025.”
The minister acknowledged the availability of ₦431 billion in funds earmarked for contractors but highlighted the need for proper certification before disbursement. He urged contractors to submit claims promptly, especially for projects under Phase 1, and encouraged open communication with regional directors to address any augmentation issues.
Furthermore, Minister Umahi emphasized the importance of transparency in the certification process, stating, “Any certificate I sign now, I have to take account for it even when I have left office.”
This announcement marks a significant step in the government’s efforts to bolster infrastructure development across Nigeria. The allocation of funds and the introduction of a performance bond system are expected to streamline project execution, ensure quality construction, and enhance accountability in the execution of road projects, ultimately benefiting the nation’s transportation network and economy.
