The Federal government has taken over the supervision and funding of major road projects previously financed by the state oil company.
The Minister of Works, David Umahi, said the Federal Government will now directly oversee and pay contractors handling projects that were earlier funded by the Nigerian National Petroleum Company Limited (NNPCL).
Speaking at a news conference in Abuja, Mr Umahi said the change follows a revised framework under Executive Order 007 introduced between April and May 2023. Under the new arrangement, NNPCL will no longer make direct payments to contractors. Instead, the Federal Ministry of Works will manage both supervision and disbursement of funds.
He said President Bola Ahmed Tinubu has approved the release of 127bn naira ($…) to ensure work continues on the affected projects.
According to the minister, an estimated 7tn naira will be required to complete all the road projects initially funded by NNPCL. He described the projects as critical to improving national connectivity and boosting economic development.
Mr Umahi also addressed concerns about contract awards, clarifying that the Abuja–Kaduna Road project was awarded to Infiouest International Limited, not Mikano International Limited.
He raised concerns about the increasing vandalism of roads, bridges and other infrastructure across the country. He cited damage along the Lagos Coastal Road corridor, saying flooding on parts of the highway was largely caused by blocked underground drainage systems filled with refuse.
The minister called for greater public cooperation in protecting public infrastructure and commended the Lagos State Government, security agencies and the police for increasing surveillance and enforcement. He said arrests had been made and prosecutions were under way.
Mr Umahi also announced an 8.7km extension of the Bodo–Bonny Road to connect it to the East–West Road using concrete pavement. He added that work is progressing on other major corridors, including the Akwanga–Jos–Bauchi–Gombe–Maiduguri route.
