N1.5 trillion debt: FG sets up six contract review committees
The Minister of Works, David Umahi, has established six committees to verify the authenticity of the N1.5 trillion debt incurred by the federal government for road construction, expressing concern about previous administrations’ inability to address it.
The committees assigned to the geopolitical zones were tasked to examine all outstanding certified certificates’ debts generated both before and after May 29th, 2023.
In a statement issued on Saturday, December 9, the minister’s chief press secretary, Uchenna Orji, revealed that the committees were established after a budget defence session between the minister and the ministry’s directors preparatory to the defence of the 2023 and 2024 budgets before the National Assembly joint Committee on Works, where Umahi reaffirmed the Ministry’s commitment to road infrastructure development in line with President Bola Tinubu’s Renewed Hope agenda.
Orji stated that the minister expressed worry over the substantial debts stemming from unpaid certificates inherited from the previous administration, amounting to a current total of N1.5 trillion.
Highlighting the necessity for contract review in light of inflation, the minister was quoted as emphasizing the Ministry’s acknowledgement of the challenges, while urging contractors owed by the Federal government to engage the Committee specific to their zone for a thorough review of their concerns, as both factors were identified as crucial issues requiring resolution for progress.
The statement reads in part: “The committees will also review the approved and unapproved variation of prices and all augmentations that were approved or are yet to be approved and make recommendations to the Ministry’s management.
“The Ministry has exposed these debts and all reviews in the Ministry to Mr. President’s economic team and also to the Federal Executive Committee on road sector funding.
“It is believed that the internal works through these constituted committees will help them to use external consultants to re-verify the works so that concrete decisions will be made to move the Ministry forward.
“Contractors who are being owed are requested to approach these committees with all documents to back up their claims from Tuesday 12th, 2023 to Friday, 22nd of December 2023 from 9 am to 7 pm at the Honourable Minister’s Conference Room, 1st floor, Federal Ministry of Works, Headquarters, Mabushi Abuja.
“The Minister again thanked Mr. President very highly as well as the National Assembly and pledged their commitment in using judiciously whatever fund allocated to the Ministry and such funds must impact on the road infrastructure improvement.”
