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FG Plans to Settle N1.5 Trillion Debt Owed to Highway Contractors
FG Plans to Settle N1.5 Trillion Debt Owed to Highway Contractors
News reports indicate that the Minister of Works, Dave Umahi, has announced the Federal Government’s commitment to clearing the N1.5 trillion debt owed to contractors of federal highways across the country. This revelation comes after the minister’s meeting with contractors at the Ministry of Works headquarters in Mabushi, Abuja, where he provided insights into the government’s plans to address the outstanding debt.
In December 2023, it was reported that the past administration left a significant debt of N1.5 trillion in unpaid certificates for road projects. Minister Umahi assured the contractors that the government had set up a verification committee to screen contractors’ certificates and recommend eligible contractors for payments. He emphasized that every verification with merit would be paid, and an automated payment system would be put in place to facilitate the process.
The Minister expressed dissatisfaction with contractors closing construction sites during the festive season, highlighting the importance of maintaining progress on critical projects. He emphasized the government’s commitment to tracking project timelines and urged contractors to take their responsibilities seriously.
Regarding the use of asphalt for road construction, Minister Umahi clarified that the government’s preference for concrete is aimed at mitigating the escalating costs associated with asphalt. He explained that while the use of asphalt would not be entirely banned, the government would prioritize concrete for certain projects.
In addition to addressing the outstanding debt, the Federal Government has established a plan to complete 150 kilometers of roads in each of the 36 states and the Federal Capital Territory, Abuja. This initiative aims to demonstrate tangible progress in road infrastructure development across the country.
To streamline road construction efforts, the government has divided projects into 12 zones, each to be overseen by directors of special duties. Furthermore, President Tinubu has directed a review of the Federal Road Maintenance Agency (FERMA) to enhance its effectiveness in managing highway projects nationwide.
In an effort to improve road security, the government plans to introduce solar lights and enlist retired police and military personnel to safeguard highways, with the goal of reintroducing night travel. Additionally, the Bureau of Public Procurement (BPP) has approved 80% of the palliative allocation, indicating progress in addressing bottlenecks delaying road construction.
Minister Umahi’s announcements underscore the government’s commitment to addressing outstanding debts, streamlining road construction efforts, and enhancing road infrastructure across the country. These initiatives signal a concerted effort to prioritize and accelerate road development, ultimately benefiting the nation’s transportation infrastructure and economy.
