The Minister of Works, David Umahi, has reassured contractors that the Nigerian government is committed to settling the outstanding backlog of N1.5 trillion owed to them. Umahi disclosed this information during an in-house budget defense with directors in the ministry, ahead of their presentation to the joint committees of the National Assembly scheduled for Monday.
According to a statement by the Chief Press Secretary to the minister, Uchenna Orji, the Minister has established six regional committees tasked with reviewing all N1.5 trillion debts owed to road contractors. The comprehensive review is expected to be completed before May 29, 2023, signaling a commitment to addressing the financial challenges faced by contractors.
Umahi emphasized that the road sector requires special attention beyond the 2024 budget envelope allocated to the ministry. Recognizing the pivotal role of road infrastructure in Nigeria’s development, he highlighted its potential impact on economic growth, security, agriculture, trade and investment, as well as health and education.
The minister expressed appreciation for President Bola Tinubu’s support and attention to the ministry, particularly lauding the approval of concrete pavement in most of the 2024 projects. Umahi affirmed the ministry’s dedication to road infrastructure development in alignment with the Renewed Hope agenda.
Addressing the significant challenge of unpaid certificates inherited from past administrations, Umahi acknowledged the accumulated debt of N1.5 trillion and the potential contract reviews due to inflation. To confront these issues and pave the way for progress, the Minister announced the formation of six committees, each corresponding to a geopolitical zone. These committees will conduct a thorough review of all debts related to unpaid certified certificates, covering the period before May 29, 2023, and from that date onward.
