Nigeria’s Minister of Works, Senator David Umahi, has sought an increment in the 2024 budgetary allocation to the Ministry from 657,228,251,596 Naira to 1.5 trillion Naira.
Senator Umahi made the suggestion while defending the 2024 Budget estimate for the Ministry of Works before the National Assembly Joint Committees on Appropriation.
According to the Works Minister, the increment would enable the Ministry complete at least 10 critical roads and bridges in each of the six geo-political zones of the country.
The Minister also recommended that an Emergency Fund of about 30% of the Budget Provision be provided to “cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons.”
The Minister also sought an “urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
“Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the projects unit rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while unit rates regime will take effect on contractors in line with the current realities of the construction industry.
“More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges” Umahi said.
Senator Umahi while emphasising the need for better road network to boost socio-economic growth, explained that 693 new projects have been proposed in the 2024 budget in order to improve road network connectivity.
He further explained that the Ministry has prioritised several projects for completion between 2022 and 2024 but, insufficient funds has been a major challenge in the efforts to achieve better road infrastructure for Nigeria.
Senator Umahi further gave account of the 2023 appropriation which was 534,455,695,989 naira to the then Ministry of Ministry of Works and Housing as well as Parastatals.
He explained that after the de-merger of the Ministry from the Ministry of Power and Housing, the Federal Ministry of Works received an allocation of N383,351,656,449 as capital, Overhead expenses amounted to N525,362,343.96, and personnel costs totalled N6,916,751,203.
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