FEC approves N740bn road contracts

The Federal Executive Council (FEC) approved several significant road projects on Wednesday, including a ₦740 billion allocation for the Berger section of the Abuja-Kano highway.

This announcement was made by the Minister of Works, Dave Umahi, during a press briefing at the Presidential Villa in Abuja, following a meeting chaired by President Bola Tinubu.

Umahi emphasized the government’s strategy to tackle the existing backlog of infrastructure projects.

He highlighted the ongoing critical rehabilitation of the Shagamu-Benin road and confirmed that procurement processes for its complete reconstruction with reinforced concrete pavement are underway.

He noted a shift in the approach to the Abuja-Kano road project, stating that it will no longer utilize a tax credit arrangement but will proceed with a direct procurement plan for the 162-kilometer stretch.

Additionally, construction on the Sokoto-Badagry road is set to begin soon, and work will resume on the long-stalled Oyo-Ogbomosho road. The Makurdi-Katsina-Ala road will also receive significant repairs.

Umahi further addressed the FEC’s focus on the inherited debt profile, which stands at ₦1.6 trillion across 2,604 projects, with a total contract value of ₦13 trillion.

He explained that the Ministry of Works has adopted a phased approach to project completion, guided by available funding. Examples of this strategy include the Biu-Kangiwa-Kamba-Kaya road in Kebbi State, the Yola-Hong-Mubi road in Adamawa State, and the Kachako-Dambazua road in Kano State.

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To combat rising costs due to inflation and fluctuating exchange rates, the FEC approved advanced payment mechanisms for contractors.

Umahi clarified that under the Procurement Act, Ministries, Departments, and Agencies (MDAs) can make advance payments up to 30% of the contract value, emphasizing that this should be seen as a measure to mitigate inflationary pressures on project costs.

Additionally, the FEC approved the printing of one million science textbooks for secondary schools, aimed at addressing deficiencies in subjects such as physics, chemistry, biology, mathematics, and computer science.

This initiative, presented by Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, is designed to enhance educational capacity and technological development in Nigeria. The textbooks will be distributed to local governments, unity schools, and special schools across the country, alongside plans to establish digital and physical libraries in approximately 1,000 secondary schools.

In related discussions, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced President Tinubu’s directive to convert fuel stations across Nigeria into Compressed Natural Gas (CNG) dispensing stations.

He highlighted the benefits of CNG, describing it as a safer and more cost-effective alternative fuel source. Ekpo stated that this initiative aims to reach all regions of Nigeria and significantly reduce fuel costs.