FG earmarks N431bn for road contractors, seeks 10-year guarantee

The Ministry of Works, on behalf of the Federal Government, is set to disburse N431 billion to road contractors.

During a Thursday meeting in Abuja at the ministry’s office, Minister David Umahi disclosed this as he interacted with contractors responsible for road dualization projects and the ministry’s zonal directors.

The minister also conveyed the ministry’s plan to concentrate on enhancing the dualized road network across the nation.

Umahi also announced the implementation of a performance bond, ensuring a 10-year guarantee for all new projects.

He said,

Umahi, speaking via the Director of Information, Press, and Public Relations Unit, Blessing Lere-Adams, additionally emphasized that contractors should remain dedicated to one lane if their work had not yet reached the halfway mark.

Furthermore, the Minister warned contractors that he would not entertain stories of failures on the roads due to overloading.

He called upon all the contractors to work together with him, adopting the concrete technology used in road construction in India and Singapore.

Umahi said this administration has 1800 kilometre of roads, and inherited a contract sum of about N14.1 trillion and out of which N4trillion is being paid in all the projects, some of the projects have lasted between 10 to 20years.

He said,

The Minister stated that certain contractors have increased their contract amounts by 100%, which is the primary reason for delayed payments.