Senator David Umahi, the Minister of Works, has proposed a substantial increase in the 2024 budget allocation for the Ministry of Works, seeking to raise it from N657.22 billion to N1.5 trillion. The proposal was presented during the defense of the 2024 Budget estimate for the Ministry before the National Assembly Joint Committees on Appropriation.
Umahi’s proposition aims to accelerate the completion of vital roads and bridges spanning Nigeria’s six geo-political zones in the coming year. He emphasized the urgency of the increment, targeting the completion of at least ten critical infrastructure projects across the country.
Addressing the issue of inflation’s impact on road projects, the Minister highlighted that many contractors are currently off-site due to the exhaustion of their contract Value of Projects (VoPs) and advocated for a review of all VoPs and augmentations. Umahi also suggested converting owed amounts to contractors into Promissory Notes, aligning with the current realities of the construction industry.
To address unforeseen emergencies on the road network, Umahi proposed allocating approximately 30% of the Budget Provision to an Emergency Fund. This fund would serve as a crucial resource, particularly during the rainy seasons when emergencies are more likely to occur.
The Minister stressed the importance of an enhanced road network for Nigeria’s socio-economic growth, advocating for an urgent review of certified debts to contractors. He proposed converting these debts into Promissory Notes, allowing the Ministry to strategically allocate funds to achieve its set objectives.
Umahi also encouraged the inclusion of 693 new projects in the 2024 budget to enhance road network connectivity and further expedite socio-economic development across the nation. In addition, he called for an urgent review of unit rates for contractors, aligning them with the current realities of the construction industry.
As part of the broader strategy, Senator Umahi suggested fostering private sector involvement through the Road Tax Credit Scheme. Encouraging more eligible companies to participate in the scheme would enable them to front-load their tax liabilities, contributing to solving current infrastructure challenges.
