The Minister of Works, Engr. David Umahi, announced that the combined effects of the naira’s depreciation and the removal of the fuel subsidy have significantly raised the estimated cost of completing ongoing federal road projects across Nigeria.
Speaking at a press briefing on Monday, Umahi highlighted that, under President Bola Tinubu’s administration, the government will now require over N19 trillion to complete these inherited infrastructure projects.
This increase reflects the broader economic pressures currently affecting national development efforts.
According to him, the new cost represents an increase of N3 trillion over the N16 trillion projected for the projects as of August 2024.
Umahi had said that the funding gap to complete all inherited projects was about N13 trillion as of May 2023, which would rise to over N16 trillion when all projects are reviewed in line with current market realities. He stressed that this increase is due to the removal of fuel subsidies and the floating of the naira.
Addressing the media, the minister explained that these issues have continued affecting the ministry’s project delivery activities.
Umahi said, " As of May 29, 2023, the president inherited 2,604 projects. The total cost was N13 trillion, and there was a debt to contractors of N1.6 trillion.
“When you look at the variations due to the floating of the naira, reviewing all these projects gives you a total of over N19 trillion for the ongoing projects.”
He further explained that the President decided to keep all projects active, hoping to secure funding from internal and external sources, including loans, because he was concerned for Nigerians’ well-being.