The pressure on the naira in the foreign exchange market, coupled with the removal of fuel subsidy, has significantly affected earlier projections regarding the funding required by the Federal Government to complete ongoing road projects across the country.
At a briefing yesterday, the Minister of Works, Engr. David Umahi, announced that President Bola Tinubu’s administration now requires over N19 trillion to complete these projects. This new estimate represents an increase of N3 trillion from the previously projected cost of N16 trillion as of August 2024.
Umahi had earlier indicated that as of August 23, 2023, the funding gap to complete all inherited projects was approximately N13 trillion. He noted that this figure would rise to over N16 trillion when all projects were reviewed in light of current market conditions, attributing this increase to the removal of the fuel subsidy and the floating of the naira.
Addressing the media yesterday, Umahi elaborated on how these issues have impacted the ministry’s activities and project delivery. He stated, “The President inherited a total of 2,604 projects as of May 29, 2023. The total cost was N13 trillion, which the President inherited, along with a debt of N1.6 trillion to contractors.”
He further explained that considering the variations caused by the naira’s depreciation, a comprehensive review of all projects indicates that the total cost now exceeds N19 trillion.
Umahi emphasized that the President has opted to keep all projects active, seeking funding from both internal and external sources, including loans, due to his concern for the well-being of Nigerians. He pointed out that President Tinubu has prioritized the Ministry of Works, recognizing that roads and bridges could provide significant economic benefits for citizens.
