Observations from informed sources that road contracts awarded in Nigeria are notably costlier when compared with the same contracts in other African countries should be worrisome to the government and every well-meaning Nigerian. Such notions signpost nothing but huge corruption, which translates into the underdevelopment of the polity. It means, for instance, that money that should be enough for three or four projects will be expended for only one. The public is thus short-changed, while a few individuals are unjustly and illegally enriched. There should be a deliberate effort to stem this ugly scenario that also gives the country a bad name in the global community, stalling foreign investment in the process.
 
It has been established that while Nigeria spends an average of N3.7 billion ($2.31 million) per kilometre of road, other countries spend far less, with Kenya’s cost being between $300,000 and $1 million and South Africa’s as low as $200,000. A similar comparison done on railway contracts showed that Nigeria is far more expensive than in other African countries.
 
It is unacceptable that the cost of road construction should be three times higher in Nigeria than it is elsewhere. This anomaly over time has constituted a major drain on public resources. That invariably deprives other vital sectors, such as education and health, from getting adequately funded. While there are regulations and enabling laws geared at getting value for money in public expenditure, there are reasons to hold that many such rules are observed more in breaches. If due processes are adhered to in the award and delivery of contracts and other procurements, there is no doubt that the country will save money and encourage overall growth.
 
At a time when the government is compelled to extend implementation of the capital component of the 2024 budget to December 2025, the simple explanation is that the government has limited resources to finance projects. The implication is that parts of the 2025 budget could also be pushed to 2026, with a negative impact on the timely delivery of projects and increased costs. It is important, therefore, that government agencies and departments return to strict adherence to measures outlined in the Public Procurement Act, 2007, and to other transparency and accountability laws.
 
Signed into law in 2007, the Public Procurement Act was formulated to promote transparency, accountability and value for money in government contracts. It aims to ensure fair competition, enhance efficiency and promote fiscal discipline. An underlying motive for the law is that improper procurement constitutes a major corruption drainpipe among developing countries. Governments often prefer to award gigantic road contracts from which they take bribes, also known as kick-backs. Let that era be gone for good.

Political interference in contract awards makes it convenient for the government to overlook the guardrails of transparency and accountability. Yet, when transparency and accountability are thrown overboard, crucial elements of inclusion, competition, non-discrimination and fair bargaining are sacrificed. The political class avoids due process in contract awards to corruptly enrich themselves through inflated contracts. That makes road contracts more costly in the country.
 
Lack of fiscal discipline makes it difficult to deliver projects as estimated within the fiscal year or other projected timeline. Sometimes, the government makes unrealistic budgetary projections, which are not backed by releases. When there are shortfalls, the government is forced to make supplementary arrangements that are also not binding. The result is that variations are made to either add more money or extend delivery timelines. When the impact of runaway inflation is added, road contracts become inevitably costly.
 
For good and transparent measure, the government should prioritise projects for which it has capacity and funding within a specific delivery time, to avoid the ugly syndrome of abandoned or uncompleted projects across the country. Apart from the optics, it does not make economic sense to proliferate contracts that are not delivered for decades. Trillions of Naira are trapped in abandoned road contracts due to repeated variations.
 
Notably, there is an abundance of raw materials for road construction in the country. About 89.9 per cent of mineral aggregates -gravel and stone- used for road construction is sourced locally. With the gradual switch to reinforced concrete roads, cement is also available in the country. To enhance capacity, the government should speed up the development of the local steel industry, which in itself is another story of project abandonment.
 
In the area of maintenance, Nigerians remember with nostalgia the era when the Public Works Department (PWD) utilised government staff to carry out routine repairs. What do staffers of the works ministries across the country do nowadays, if one may ask? Some countries in Africa engage local contractors for their projects, and that generates employment and ensures that capital is not repatriated. The government will do well to go back to that era, which is also the gateway to technology transfer.
 
Despite the costly nature of road contracts, the quality seen on Nigerian roads is not spectacular. Drainages are often absent or poorly designed across many highways, which thereby allows water to corrode the surface in no time. It is imperative that engineers in the Works ministry and departments do proper evaluations before they issue certificates to contractors.         
 
Also, it is an open secret that civil servants collude with contractors to undermine due process. That must stop. Sadly, there is no serious commitment on the part of the government to discourage this trend. President Bola Tinubu and state governors should pay attention to this vice. There is no reason road contracts should be three times higher in Nigeria than in neighbouring countries. Moreover, the Nigerian governments are borrowing to fix infrastructure, and it is ridiculous that they fail to deploy the facilities to the highest levels of accountability and transparency. How does the country pay back the loans if the money is squandered without any roads in return?
 
This is the time for the government to open up road contracts and encourage competition. It is not the responsibility of one man to award road contracts. Let due process be adhered to, particularly under the Public Procurement Act.