Dr. Rowland Adewumi is the Group Managing Director of Zephyrgold Group plc, an indigenous Construction Company, and a Fellow of the Nigeria Society of Engineers. In this interview with COLLINS NNABUIFE, speaks on the Budget deficit, and the current state of the Nigeria Highways Sector, and also sheds light on the Ministry of Works’ recent policy on implementing Rigid Pavement, stressing the need for a comprehensive overhaul of the Sector.
NIGERIA seems to have a tradition of budget deficit. How can the Federal Government address the issue of funding for all ongoing projects?
In response to the pressing issue of funding allocation for infrastructure projects, several strategic steps need to be taken. These measures are vital for ensuring efficient resource utilisation and the successful completion of projects that truly benefit the nation. The first is to prioritise. We must establish clear priorities based on available funds and the economic benefits that each project brings to the table. It’s crucial that we break free from the habit of conceiving ambitious yet impractical projects for political gain. This requires a shift towards projects that offer substantial long-term benefits to our economy.
We need to initiate a comprehensive review of all ongoing contracts to ensure they align with the current funding situation. This exercise should involve considering stage construction, which can spread costs over time. Priority should be accorded to trunk roads, which serve as the lifeblood of our nation’s freight transport system and will support President Tinubu’s Renewed Hope agenda.
We must put an end to the diversion of limited resources to secondary roads, which has become a common practice. Secondary roads, often under the ownership of states or local governments, are being contracted with scopes similar to trunk routes. This diversion results in a misallocation of resources and a reduced budget for the critical trunk routes. Priority should be restored to these vital routes that promote only economic development.
To cut costs and optimise the utilisation of available personnel resources, we should consider the execution of road projects through direct labour. Improving the institutional setup, to address the funding challenge, one viable solution is the introduction of road user charges. The pursuit of the Highways Authority Bill needs to be a top priority to make this solution a reality. An essential component of this strategy is the revitalisation of weighbridges across the country, especially at ports and factories.
What are your views regarding the financial aspects and budgeting of road construction projects?
There is no denying the fact that several factors have contributed to the decline in infrastructure financing and delivery in Nigeria. These include inconsistent budget funding practices, delayed advance payments and certifications to contractors, prolonged withholding of funds from contractors, a lack of coordination between budget management, payment authorisation, and project management for road contracts, questionable project prioritisation, particularly on roads with limited economic relevance and insufficient design options analysis. From the foregoing, the Federal Government needs to propose a major initiative focused on improving projects that are ongoing, projects that are in procurement, and planned projects. For example, I remember how the budget cuts spanning 2020 to 2022 adversely affected numerous contractors, exacerbating the preexisting challenges they faced on-site.
What are your thoughts on the recently introduced policy document from the Federal Ministry of Works that promotes the use of rigid pavement?
The ongoing debate between rigid and flexible pavement options, which has gained momentum since David Umahi’s appointment, reflects the vitality of our profession. My perspective on this issue, based on recent on-site research comparing the two, is balanced. We found that initial construction costs for rigid pavements are higher due to concrete expenses and labour intensity, but they offer long-term durability and lower maintenance costs. Our study, focused on the Wajen Garin Barkamawa Dugurawa Road in Kano State, highlights the extended service life of rigid pavements, which can compensate for their higher initial costs. I will support the minister on rigid pavement only if a detailed objective evidence-based prioritisation analysis of the ongoing road and bridge projects is carried out. There should be an assessment of all ongoing and proposed projects on the appropriate prioritization, programming, and management of these projects, and the budgetary implications thereof if they are suitable for rigid pavement. My professional advice is that we leverage cutting-edge tools, including an advanced infrastructure prioritisation framework (IPF), a sophisticated multi-criteria decision support (MCDS) tool to ensure that construction cost and investment in Rigid pavement are optimized and strategically targeted for only critical roads, of significant economic benefit. While rigid pavements offer several advantages, including strength, durability, and suitability for night driving, we need to carefully weigh these factors when selecting the most appropriate pavement type, we should critically consider local conditions and requirements. Most importantly, we should consider the geological and material properties of the alignment. There is statistical evidence that Rigid pavement is best utilised in swampy geopolitical regions, for example, the riverine area of Delta State, where road accessibility is less than 200 percent.
What strategies can be adopted to enhance the efficiency and safety of the Federal Highways, particularly, the major roads?
To improve the efficiency and safety of Nigeria’s federal highways, a comprehensive set of measures and strategies must be considered. These measures encompass various aspects of highway management and infrastructure development. Any efforts to enhance the efficiency, safety, and convenience of Nigeria’s major roads, particularly trunk routes, necessitate the adoption of contemporary and pragmatic approaches across all aspects of road infrastructure: planning, design, construction, and maintenance. The realisation of this objective hinges upon the optimal allocation of resources and a purposeful shift in conceptualisation and methodologies. To maximise the outcomes, it is imperative to galvanise all stakeholders, drawing them into the active provision of resources, the embrace of new policies, and the vigilant monitoring of progress. Embracing alternative methods of execution, such as direct labour, concessions, and contractor financing, will be integral to our strategy.
What is your take on highways engineers and related personnel managing Nigeria’s road network?
The Federal Ministry of Works boasts of a cadre of exceptionally well-trained engineers, often receiving overseas education and consistently recognised as some of the best in the world. Their expertise is not limited to Africa but extends far beyond its borders. However, despite the wealth of knowledge and skills they possess, the ministry faces significant challenges arising from its outdated institutional structure and a deficiency in the professional proficiency of personnel, particularly in project management and value engineering.
One issue that stands out prominently is the widespread use of BEME (Bill of Engineering Measurement and Evaluation) in Nigeria. Moreover, the absence of a modern, computer-based approach for problem analysis and solution development hinders progress in the field. Redundancy is another challenge, predominantly observed among engineers and technicians at the ministry’s headquarters.
Would you speak on the challenges that are currently facing federal highways and propose strategies to mitigate these issues effectively?
The government is grappling with substantial and complex challenges. Key issues include a funding crisis for government contracts, which has persisted for eight years, posing the risk of project abandonment and contractor claims. Additionally, the ageing federal highways, constructed mainly in the early ‘80s, are nearing the end of their designed lifespan and need extensive reconstruction, particularly challenging in times of fiscal constraint. Encroachment into highway’s rights-of-way has surged in the past two decades, especially in urban areas, with significant portions obstructed by refuse. This necessitates substantial spending on compensation, further straining limited resources. Additionally, the problem of excessive axle loading, particularly by heavy trucks, is a major challenge causing premature road deterioration. Existing measures like weighbridges have proven inadequate, highlighting the urgent need for a comprehensive policy and mechanisms to address this issue. The scarcity of road maintenance efforts in recent times is another pressing concern. The Federal Roads Maintenance Agency (FERMA) is undertaking commendable work, but its scope restricts its ability to marshal both material and human resources effectively for comprehensive road maintenance. The traffic congestion and safety issue is another form of challenge facing our highways development. Several roads are now experiencing Average Daily Traffic (ADT) exceeding 10,000 vehicles per day.
You mention the absence of effective contractual management; could you share your professional perspectives on achieving a robust and proper development approach in this regard?
I have been in this industry for the past 20 years and have reviewed hundreds of contracts and their implementation, and several key findings always emerge which are constant. First, in our project budgeting and finance, there is always lack of a systematic approach to project appraisal, prioritization and programming, resulting in the allocation of budgets to road construction projects that often yielded little or no socioeconomic benefit. Secondly, lack of consistency is also noted, between the initial project budget allocations and the actual authorisations or provisions in annual budgets as the works progressed, typically falling short of the initial budget. Funding shortfalls against authorised budgets occurred, often due to the diversion of funds earmarked for specific projects to cover budgetary shortfalls in other areas. Consequently, projects frequently found themselves lacking the necessary funds for timely completion, leading to significant delays and increased expenditures, as project execution delays invariably resulted in cost overruns. Additionally, the ministry of works was found to be failing in its responsibilities. In the project planning and design stage, several issues plague the road sector.
What you do think is the perfect workable plan for the restructuring of the Federal Ministry of Works?
I respectfully urge the esteemed minister to breathe fresh vitality into all the existing departments and build upon the past administration’s constructive approach to road concessions. It would be judicious for the current administration to promptly initiate the process of entrusting certain key road and bridge projects to private entities for maintenance and construction. Furthermore, the implementation of contractor financing, which has seen partial adoption, should be expeditiously rolled out in full force, with a priority placed on executing vital projects. I propose that the ministry, with specific emphasis on the Bridge Design/Construction/Maintenance Division, promptly conducts condition surveys for all bridges in the nation that have exceeded their design life. I recommend the standardisation of superstructures for small and medium-span bridges (<36m), which should encompass the design of standardised drainage structures such as ring culverts and box culverts.
How can Nigeria develop its roads sector, particularly construction contracts to be at par with international standards?
The task at hand involves a multifaceted approach to improve road construction contracts and contracting processes. The primary focus is on crafting a performance-based road construction contract aligned with international standards and best practices. There is an urgent need to commence this development to ensure subsequent contracts adhere to these ambitious standards. Notably, the need for flexibility in contract terms should be stressed. We need to critically review the initiatives that involve the development of Public-Private Partnership (PPP) options for road construction in Nigeria.
There are concerns regarding the capacity of indigenous contractors to undertake multi-billion Naira road construction projects. What is your perspective on this?
It is a shame that foreign contractors, in terms of gross value, take over 80 per cent of all road construction projects. We fail to realise that the construction industry is much too important for national development, to be dominated by foreign firms. Indigenous contractors tend to use more local materials and labour, which is good for the economy and development. There should be a national scheme for improving the capacity of local contractors to enable them to secure a larger market share in the construction business and to enable them to compete effectively with foreign firms. There are local contractors who are very competent, trained overseas, and have returned home to develop the country’s infrastructure. Therefore, it is essential for the ministry to conduct a comprehensive assessment of the capacity and capabilities of Indigenous contractors. It is a fact that Nigerians have the deepest personal stake in the wellbeing of Nigeria. Consequently, there is a lower risk of capital flight when income is earned by Indigenous contractors. Between 2019 and 2022, the Federal Government granted over 13,000 expatriate quota permits. It is a matter that warrants thoughtful consideration.
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