The Minister of Works, Senator David Umahi, on Wednesday proposed an increase in the 2024 budget allocation for the Ministry of Works from N657.22 billion to N1.5 trillion.

The proposal was presented during the defence of the 2024 Budget estimate for the Ministry of Works before the National Assembly Joint Committees on Appropriation.

Umahi said the proposed increment is in a bid to fasten the completion of important roads and bridges across Nigeria’s six geo-political zones in the upcoming year.

He spoke on the issue of inflation while the Minister also called for an Emergency Fund to take care of unforeseen road network emergencies.

Umahi emphasized that the increment will help to facilitate the completion of at least ten critical roads and bridges across the country.

“An Emergency Fund of approximately 30% of the Budget Provision should be allocated to cater for unforeseen emergencies that regularly occur on the road network, especially during the rainy seasons,” he said.

“Additionally, there should be an urgent review of all certified debts to contractors and, if possible, convert the same to Promissory Notes to contractors so that we can get properly focused on using any fund appropriated to us to pursue the Ministry’s set objectives.”

While addressing the impact of inflation on road projects, the Minister said many contractors are presently out of sites due to the exhaustion of their contract VoPs and also 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 the unit rates regime will take effect on contractors in line with the current realities of the construction industry,” Umahi said.

“I advocate for more eligible companies to be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions.

“This means that they will be front-loading their tax liabilities to solve our present challenges.”

Senator Umahi also touched on the importance of an enhanced road network in Nigeria to hasten socio-economic growth across the nation.

He highlighted the inclusion of 693 new projects in the 2024 budget so as to enhance road network connectivity.
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