The recent announcement by Minister of Works, Engr. David Umahi, that Nigeria now requires over N19 trillion to complete inherited road projects raises significant concerns about the administration’s ability to deliver on its infrastructure promises. Just two months prior, the government estimated N16 trillion would be needed, up from an initial N13 trillion estimate in May 2023. The cost increase, attributed to foreign exchange pressures and subsidy removal, signals ongoing financial strain and a potential lack of clear, strategic planning in handling Nigeria’s infrastructure development.
At the core of this challenge is the volatility of the Naira, which, since floating, has lost significant value, thereby increasing the cost of imported materials and exacerbating existing funding gaps. The removal of fuel subsidies further complicates the financial landscape. Though these economic adjustments were intended to stabilize the economy, they have undeniably placed an immense burden on both the government and the citizens. With President Tinubu inheriting a staggering 2,604 projects alongside an initial debt of N1.6 trillion to contractors, the administration faces the dual challenges of fiscal constraint and logistical hurdles.
While Minister Umahi has acknowledged the daunting financial requirements and hinted at pursuing both internal and external funding sources, there remains a lack of transparency on how previously allocated funds were utilized. Despite the vast sums funneled into Nigeria’s road infrastructure, the pace of work and quality of completed projects remain inadequate in many cases. Even major projects, such as the Abuja-Kano road, are plagued with delays, leading to the issuance of a seven-day ultimatum to the contractor, Julius Berger. Although the ultimatum suggests a proactive stance, it raises a question of accountability: why did it take 17 months of negotiations for such a critical project to reach a point of impasse?
Citizens and stakeholders alike are concerned about the management of funds already disbursed to the Ministry. It’s unclear what tangible results have emerged from these allocations, especially given the state of many Nigerian roads and the routine delays that characterize large-scale infrastructure projects. With increased borrowing and loan dependency now on the horizon, the stakes have never been higher. The administration needs a transparent and consistent reporting mechanism to detail how funds are spent, which projects are prioritized, and how cost escalations are addressed in real time.
While roads and bridges can undeniably transform economic potential, the cost for this transformation must be carefully managed. Without clear oversight and accountability, the cycle of escalating costs and unfulfilled promises may continue, further eroding public trust in the government’s ability to deliver the infrastructure Nigeria so desperately needs.
Reference
Nigerian Govt requires over N19trn to complete inherited road projects – Umahi