The Federal Government has made moves to adopt workable measures to end the old order of unnecessary delays in the execution of road infrastructure projects by contractors across Nigeria.
Minister of Works, Engr David Umahi who disclosed this when met with the contractors handling federal road projects on Tuesday in Abuja said steps have been taken to rejig the monstrous contract price variation clause which was a major clog in wheel of progress of project execution over the years.
As part of strategic infrastructure development masterplan of Renewed Hope administration of President Asiwaju Bola Ahmed Tinubu, the Minister introduced responsive approaches which were adopted as the Ministry’s measures to overcome the challenges of road infrastructure development in Nigeria.
Outlining such measures which include but are not limited to reviewing the VOP clause to ensure workability in line with the economic realities, making it a policy that contractors handling two carriageway projects (with exemption of the 3 legacy projects) must first complete one side.
The Minister added, “And thereafter continue with the second part subject to availability of fund, advancement of funds after award of contract is subject to conditions contained in the bid document, going forward. 
“Other measures adopted were that contractors must have a timeline for project delivery, and every contractor shall have a duty to maintain the road under construction until the entire project is completed and delivered.
“A deadline shall be given for all ongoing projects, and with time, all projects that have no funding shall be stood down, but projects will be selected Zone by zone or State by State for funding”.
In applying these measures, the Minister emphasized that all contractors will be treated equally. “One thing that is our policy is that no contractor in the Ministry of Works will be treated differently.
“Whether you’re an indigenous contractor or you’re a foreign contractor, insofar as you can turn cement to the right grade and place it rightly. You’re a good contractor; we check, and it’s good”, he said.
While recalling the Renewed Hope administration who came on board, 29th May 2023, Umahi said Mr. President inherited over 2600 ongoing projects from the past administration amounting to over N15 trillion, out of which only about N2 trillion was certified and paid.
He disclosed that the current administration now have ongoing projects of 13 trillion naira, including budgetary projects, NNPCL, SUKUK, Presidential Initiative Development Projects, other Tax Credit Scheme Projects of NLNG, MTN,Dangote, BUA, Mainstream and projects under EPC +F, PPP”.
Umahi stated that the aftermaths of fuel subsidy and forex forces affected drastically the contract cost elements and pricing of which VOP could not provide a remedy especially for jobs awarded so many years ago, and where VOP on contracts was sometimes hitting 500%.
The Minister, while looking for a solution, said the Ministry sought for and got Mr. President’s approval to give an envelope in the 2024 budgetary provision to keep all the inherited projects alive, believing that more funding of such projects could come by thinking outside the box.
He noted the various projects completed by contractors and other major ones to be ready for commissioning from July, 2024, directed the Directors in charge of each Geo-Political Zone to officially and publicly commision the various projects completed in their respective zones.
The Minister directed that committees must be made up of the Ministry’s Engineers and the Media correspondents be set up to pay inspection visits to the respective zones to assess the level of project performance in all the federal road projects being handled by the Ministry under the Renewed Hope administration.
