Nigerian Govt Vows To Settle N1.5 Trillion Debt With Contractors, Declares Umahi

In a recent announcement, the Minister of Works, David Umahi, disclosed the establishment of six regional committees tasked with evaluating outstanding debts amounting to N1.5 trillion owed to road contractors. The directive is set to be executed from the period before May 29, 2023, up until the present date…

This development was outlined in a statement released by the Chief Press Secretary to the minister, Uchenna Orji, in Abuja on Sunday. The minister unveiled this initiative during an in-house budget defense session with directors from the ministry, preparing for their presentation to the joint committees of the National Assembly scheduled for Monday.

Umahi emphasized the need for special attention to the road sector beyond the 2024 budget allocation received by the ministry. Recognizing the pivotal role of road infrastructure in fostering economic growth, he highlighted its potential impact on various sectors, including security, agriculture, trade and investment, as well as health and education, especially in a developing nation like Nigeria.

Expressing gratitude to President Bola Tinubu for his support and approval of concrete pavement projects in the 2024 plans, Umahi reaffirmed the ministry’s commitment to road infrastructure development aligned with the Renewed Hope agenda. He acknowledged the significant challenge posed by the substantial debts from unpaid certificates inherited from previous administrations, amounting to N1.5 trillion, and the anticipated contract reviews due to inflation.

To address these issues and pave the way for progress, Umahi established six committees, each assigned to a specific geopolitical zone. These committees are entrusted with the responsibility of reviewing all outstanding debts associated with unpaid certified certificates, spanning the period before May 29, 2023, and from that date onward