Federal Ministry of
Works and Housing (FMWH)
Federal Republic of Nigeria
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ROAD  INFRASTRUCTURE REVOLUTION UNDER THE RENEWED HOPE ADMINISTRATION OF PRESIDE...
Jan
16
2024

ROAD  INFRASTRUCTURE REVOLUTION UNDER THE RENEWED HOPE ADMINISTRATION OF PRESIDENT ASIWAJU BOLA AHMED TINUBU GCFR, WIN -WIN SITUATION FOR ALL STATES

- As Benue State Governor  visits the Hon. Minister of Works

Photo  speaks

The Renewed Hope administration of the President of Nigeria, His Excellency Sen. Asiwaju Bola Ahmed Tinubu GCFR  has proven to be a grandmaster  of inclusive and impactful governance that embraces  the desires of the federating States. The federal government  under Mr. President  carries along all the  States   in her road infrastructure  development plans. Just recently, the President of Nigeria  released  funds  for the commencement  of nationwide  palliative interventions  on our road infrastructure in addition  to the  budgetary  and extra budgetary  funds provided for the execution of the 2024 road  projects.

The 36 State Governors have been working  progressively  with the APC led federal  government, notwithstanding party affiliations or ideological inclinations, to ensure that  roads of socio-economic  priority  in their  States are captured in the infrastructure roadmap of the Federal Ministry of Works.  

Today, 16th January 2024, the Governor of  Benue State, His Excellency, Fr. Hyacinth Alia visited  the Honourable Minister of Works, His Excellency  Sen. Engr. Nweze David Umahi CON  in his office. The meeting was obviously  not unconnected  with the desire of the Governor  of Benue State to change  the infrastructural  landscape  of Benue State through  tapping  into Mr. President’s Renewed  Hope  infrastructure  initiatives across  the  nation.

His Excellency Hyacinth  Alia is the second  Catholic Priest to be elected as Governor in the history of Nigeria. He emerged victorious in the Benue State Gubernatorial election held on March 18 , 2023, and on Monday, the 8th day of January 2024, the Supreme Court upheld his election and dismissed the appeal of Mr. Titus Uba of the People's Democratic Party (PDP), who was his rival on the 18th March, 2023 poll. He is proudly a member  of All Progressives Congress,APC.
 

REMARKS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AHMED MUSA DANGIW...
Jan
16
2024

REMARKS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AHMED MUSA DANGIWA AT THE INAUGURATION OF REFORM TASK TEAMS FOR THE ACTUALISATION OF THE RENEWED HOPE AGENDA FOR HOUSING AND URBAN DEVELOPMENT AT THE NAF CONFERENCE CENTRE, ABUJA

Protocols

  • Good morning, ladies, and gentlemen.
  • I would like to sincerely welcome and thank you all for taking out time to be here with us at this historic event today. 
  • We are gathered here as Nigerians, public and private sector players, stakeholders in the housing industry, management, and staff of housing development agencies.
  • What unites us is the desire for Nigeria to have a vibrant, functional, and efficient housing industry that not only meets the shelter needs of Nigerians but also to unlock the massive potential of the sector for catalyzing inclusive economic growth.
  • Over the 60 years of Nigeria’s independence, we have witnessed successive governments roll out series of housing development plans and policies. Despite these many plans, our country has sadly failed to meet the housing needs of Nigerians as we still grapple with a huge housing deficit. Housing sector contribution to the Gross Domestic Product (GDP) hasn’t moved in any significant way over the past several decades, housing development institutions are still only functioning at sub-optimal capacities, and the enabling housing laws are obsolete. 
  • Researchers and experts have stated clearly that most of the housing plans and policies since Independence failed to deliver the expected results due in large part to a lack of political will on the side of the government.  
  • The good news now is that our President, His Excellency, President Bola Ahmed Tinubu, GCFR, recognizes that to achieve the Renewed Hope Vision Target of building a 1Trillion-Dollar Economy, housing must be prioritized. This means undertaking comprehensive housing sector reforms that will ensure that systemic and prevalent issues that have caused under development are fixed, all legal impediments are removed, and the institutional frameworks of housing agencies necessary to ensure that they deliver optimally on their mandates to deliver decent and affordable housing to Nigerians are reviewed and upgraded. 
  • Mr. President has demonstrated a strong political will and an unmatched boldness to take steps towards breaking the jinx of underdevelopment in Nigeria in line with his Renewed Hope Agenda. 
  • The first sign of this in the housing sector was his demerger of the Ministry of Housing and Urban Development from the Works Ministry. Second was his preference for a housing industry professional and his eventual choice of my humble self to lead delivery and implementation of his Renewed Hope Vision for the Housing Sector as the Minister of Housing and Urban Development.
  • Alongside the Hon. Minister of State, my brother Alh. Tijani A. Gwarzo, I have taken this job with all sense of commitment and responsibility and pledged to work hard to deliver on the assignment working closely with all industry stakeholders. 
  • Shortly, I will be taking a major foundational step necessary to implementing the historic reforms for actualizing the Renewed Hope Vision of His Excellency, President Bola Ahmed Tinubu, GCFR for Housing and Urban Development by inaugurating four (4) housing sector reform task teams. 
  • First is the Housing Institutions Reform Task Team. The task of this Team is to develop a robust framework for ensuring that housing agencies under the supervision of the Ministry are optimized to deliver effectively on the Renewed Hope Vision for the provision of quality, decent and affordable homes to Nigerians.
  • This includes a thorough review and facilitation of necessary legislative amendments of relevant housing industry laws including the National Housing Fund (NHF) Act,1992, Federal Mortgage Bank of Nigeria (FMBN) Establishment Act, 1993, Federal Housing Authority (FHA) Act,1973, and PenCom Act (to allow for increased investment in housing). The Team will also map out strategies for driving the nationwide adoption and passage of the model mortgage foreclosure law in States.
  • The Housing Institution Reform Task Team comprises housing industry sector experts, stakeholders, agency representatives, professional bodies, and academia. The reforms and legislative amendments that the Reform Team will carry out in collaboration with stakeholders and the National Assembly will be the most comprehensive set ever done in the history of Housing and Urban Development in Nigeria.
  • Second is the Multi-Agency Project Delivery Task Team. The aim is to ensure that all housing agencies under the supervision of the Ministry of Housing and Urban Development work collaboratively towards optimizing their strengths to deliver decent and affordable housing to Nigerians.
  • The Multi-Agency Project Delivery Task Team comprises highly qualified and experienced professionals with expertise in housing development, urban planning, infrastructure, finance, and project management, amongst others. 
  • They will outline frameworks for synergy between the Federal Ministry of Housing and Urban Development (FMHUD), Federal Mortgage Bank of Nigeria (FMBN), Federal Housing Authority (FHA) and Family Homes Funds Limited (FHFL) and propose processes to eliminate bottlenecks in housing development to increase the national housing stock, amongst others.
  • Part of its Terms of Reference includes developing a comprehensive strategy and roadmap for the construction of at least 50,000 new houses per year for a start through multiple funding sources. 
  • Third is the Land Reforms Task Team. This Team is tasked with developing a blueprint that will aid sustainable implementation of much-needed reforms necessary for streamlining land administration and ensuring easy, cost effective and efficient access to land in Nigeria. 
  • This Task Team comprises state governments, traditional rulers, relevant agencies, professional bodies, academia, stakeholders/sector experts to ensure buy-in and inclusivity. The Team is to draw from the extensive work of the Presidential Technical Committee on Land Reforms (PTCLR) which has been working for the past 14 years towards comprehensive reforms including the establishment of a National Land Commission.
  • Fourth is the Building Materials Manufacturing Hubs Task Team. The Federal Ministry of Housing and Urban Development is setting up the Building Materials Manufacturing Hubs Task Team in line with the Renewed Hope Agenda to boost building materials manufacturing in the country towards ensuring economic growth, creating jobs, reducing dependency on imports, and lowering the cost of construction materials and housing delivery. 
  • The Building Materials Manufacturing Task Team is made up of sector experts, representatives from relevant government agencies, academia, and industry associations. 
  • Primarily, their job is to conduct a thorough assessment of the current state of the building materials manufacturing sector in Nigeria, including existing facilities, capacities, and key players. They are to also identify challenges and opportunities within the sector. 
  • The result will be a blueprint that will ensure sustainable implementation of reforms for the sector and the establishment of building materials manufacturing hubs in each of the six (6) geo-political zones across the country. This may include feasibility studies on the most viable locations for the hubs within each zone for siting of housing projects. 
  • The Task Teams have been carefully constituted to include all relevant stakeholders, such as agencies of government, professional and regulatory bodies, the academia, industry experts, traditional rulers, and other groups. The goal is to tap from the wealth of knowledge and experience of these relevant sectors and individuals, and come up with strategies that are inclusive, wholesome, and can stand the test of time.
  • I am well aware of the skepticisms that usually greet the constitution of work groups by government or its agencies. I am also aware that many Nigerians see such teams as a waste of time and resources because of many years of abuse and nonperformance on one hand, and the lack of willingness to implement the outcomes and resolutions of such teams on the other hand. However, I make bold to ask Nigerians to trust us. 
  • The chairmen and members of these teams have been carefully selected. They are individuals of character who have exhibited professionalism, result-oriented leadership, and distinguished service in their various fields. I am confident that they will deliver, and the deliverables will form the foundation for a strong and vibrant housing and urban development sector we can all be proud of. From the Chairmen to the Sector experts to the housing industry stakeholders, we have done so from the basis of expertise, experience, and patriotism.
  • We have chosen individuals who are not only knowledgeable, experienced, but also passionate about the development of the housing sector. These are people who over the years have been identified in the industry to be dissatisfied with the slow pace of development and share with me the urgent importance of getting things right.
  • And getting it right is not rocket science. It is about sincerity of purpose, and the political will to do what is right for the benefit of Nigerians. This sincerity of purpose and political will we now have in His Excellency, President Bola Ahmed Tinubu, GCFR. 
  • Additionally, we have the support of the National Assembly. From the Senate President, the Speaker, Chairmen of the Senate and House Committees on Housing and Urban Development, and stakeholders, we now have a historic alignment of critical stakeholders who believe that we are serious about doing things right and are ready to assist us to change the narrative for good. 
  • With these I am confident that we shall succeed. I am assured that the work that the Task Teams will do and the recommendations that they will bring up will not end up in filing cabinets in the Ministry. We will Act on them with all sense of urgency. The recommendations should include clear Action Plans with deliverables and timelines. 
  • And that is why we have proactively appointed Private Sector Consultants for each of the Task Teams. They will provide Technical Support for the Teams to ensure speedy access to needed resources, efficient harnessing and synthesis of deliberations, structured reporting, and timely delivery of stated Terms of Reference. 
  • On this note, I encourage all members to see the work that they have been called up to do as part of making history. Several years away from today, when the history of Nigeria’s housing industry is written, it would be said that this event that we are witnessing today, the teams that we are inaugurating today and the Nigerians who are part of it, were the ones that laid the foundation for the historic transformation and development of Nigeria’s housing industry. So, I want to charge you all to give it your best for the good of Nigerians and for posterity.
  • Dear chairmen and members, the trust we bestow on you today is a great honor. You carry on your shoulders the hopes and aspirations of millions of Nigerians who expect us to do well as a Ministry and for the government of His Excellency, President Bola Ahmed Tinubu, GCFR, to meet their aspirations having voted for him overwhelmingly at the polls. On our part, we will provide all the resources you need to the best of our abilities to ensure you deliver within the timelines stipulated in the Terms of Reference.
  • Once again, I want to thank you for accepting to be a part of this national assignment. I also look forward earnestly to your recommendations in the coming eight weeks so we can begin the process of implementing them towards building a vibrant and efficient housing industry that delivers decent and affordable housing to Nigerians. 

Thank you.

Minister Of Works And His Finance Counterpart Jointly Inspect Abuja- Kaduna- Zaria- K...
Jan
13
2024

Minister Of Works and His Finance Counterpart Jointly Inspect Abuja- Kaduna- Zaria- Kano Highway, Brainstorm with Julius Berger Nigeria Plc on Strategies and Milestones for Delivery of The Project Within a Record Time

In keeping with the Presidential innovations on inter-ministerial coordination, cooperation, and collaboration in the tackling of sectoral problems under the Renewed Hope administration of His Excellency, Sen. Asiwaju Bola Ahmed Tinubu GCFR, the Hon. Minister of Works, His Excellency Sen.Engr. Nweze David Umahi CON and his counterpart, the Hon.  Minister of Finance & Coordinating Minister of the Economy, Chief Adebayo Olawale Edun, were on inspection visit to Abuja – Kaduna -Zaria-Kano Highway on 12th January 2024. 

The dual carriageway which has been   a source of concern to road users because of the many dilapidated spots and security challenges, was awarded to Julius Berger Plc but could not be completed because of security and funding challenges. But the administration of Mr. President views the road as very critical for the socio-economic advancement of the nation and is therefore committed to completing the project on a record time.

While brainstorming on strategies and milestones for fixing the road, the Hon. Minister of Works assured the contractors that funding would not be a problem going forward. "We have got a commitment from the Honourable Minister of Finance to make payment, and I am very sure if we pay Julius Berger Plc according to the commitment on funding, it will complete the job “

The Minister also said “we have issues of reviewing the contract sum, and we will sort that out. We sent our technical team to reexamine the sub grade, which will be the basis of our redesign, let me emphasis that this is the first project we are touring in this place, and Mr President in his Renewed Hope Agenda has expressed his deep concern on the completion of the project and he has directed that everything must be done to get the entire project completed”

On his part, the Hon. Minister of Finance assured of the unwavering commitment of the Federal Government in the timely funding of the project in line with the agreed milestones.  “Under the mandate of President Bola Ahmed Tinubu, we are both here on inspection to hear the commitment of the contractor handling the project   and to support them, to as soon as possible complete this all-important reconstruction of the Abuja- Kaduna - Zaria - Kano Road.”

The finance minister described the works sector as one of the most strategic sectors that will add value to the economic development agenda of Mr. President and would always be given priority attention. "We want to urge the contractor to do more.Infrastructure is a critical priority of the administration of President Bola Ahmed Tinubu. That is how we can get food prices down. Through transportation and easy transportation of agricultural products, we want to move freely across the country. To bring down the prices and inflation,we will be doing more on the funding. " 

On the inspection team includes directors from both Ministry of Works and Finance, Managing Director Julius Berger Nigeria Plc, Engr Dr Lars Richter who conducted the two ministers round the projects and several other stakeholders.

MINISTER OF WORKS DIRECTS CONTRACTORS TO GO BACK TO SITE, SETS TIME FRAME FOR PROJECT...
Jan
11
2024

MINISTER OF WORKS DIRECTS CONTRACTORS TO GO BACK TO SITE, SETS TIME FRAME FOR PROJECTS DELIVERY

The Honourable Minister of works His Excellency Sen. Engr. Nweze David Umahi CON has charged the contractors under the Federal Ministry of Works to brace themselves for the standard of work and delivery time frame required of every contractor under the Renewed Hope administration the President of Nigeria, His Excellency Sen. Asiwaju Bola Ahmed Tinubu GCFR.

The Hon Minister gave this charge in a meeting with the Directors of the Ministry and the contractors held at the Ministry's headquarters Mabushi-Abuja, this 11th day of January, 2024.

The Honourable Minister emphasized that going forward, contractors must take into account the plight of Nigerians and the Renewed Hope Initiatives on road infrastructure development in executing their projects. He maintained that the Ministry of Works means business and would not take excuses from contractors. He assured them that the Ministry would consider the review of contracts previously consumated in line with set parameters and prevailing economic situations, and that all generated certificates would be verified and paid accordingly, while urging them to ensure that all issues of contract variations were brought to the notice of the relevant departments of the Ministry. He thanked Mr. President for the prompt release of funds for palliatives works.

”The Bureau of Public Procurement has approved over 80% of requests for palliative projects. Those who indicated interest in the palliative project should please come to the Ministry to collect award letters and complete documentation. Mr. President has graciously released 50% of funds on palliative work, and so he wants to see action in all the 36 States and Abuja.”

The Honourable Minister used the opportunity to announce the re-organization of the supervision structure for the Special Projects across the nation and introduced a special mechanism for tracking of certificates generated by contractors and expressed hope that with the new initiative under the Renewed Hope agenda of Mr. President, each State of the Federation would record not less than 150km roads in the Federal roads network in the year 2024, in addition to the special road projects funded through different extra budgetary platforms.

4. Earlier in his remarks, the representative of the Permanent Secretary and Director Highway, Bridges and Design, Engr. Awosanya Onatuga, stated that the meeting of the Directors and contractors with the Honourable Minister was agenda setting for the year 2024, and the essence was to take the task of performance that would help them move the Works sub-sector forward in accordance with the innovative plans of Federal Government under Mr. President. He thanked the Honourable Minister for the relief given to road users toward the Xmas and New Year seasons. 

"We can say we did very well towards the end of last year. There were no adverse reports on any blockage, people sleeping on the road. Yes, we have not done so much; we are not where we are supposed to be, but with the spirit of the Hon Minister, the can-do spirit, and it's not slowing down, we are on the right track"

Our Plan On Road Infrastructure Development Is Holistic And Sub- Nationally All- Incl...
Jan
09
2024

Our Plan on Road Infrastructure Development is Holistic and Sub- Nationally All- Inclusive


This is the policy direction that drives the synergy between the Federal Ministry of Works and sub- national governments in tackling accumulated road infrastructure challenges across the nation.

 

The Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi, CON is committed towards making all the States have a feel of the positive impact of the Renewed Hope administration of our dear President His Excellency, Sen. Asiwaju Bola Ahmed Tinubu GCFR on road infrastructure, which is a catalyst for the socio-economic development of progressive nations. This was disclosed during the visit of the Governor of Katsina State, H.E Dr. Dikko Umar Radda, in his office today, 9th January, 2024.

 

Although it was a closed-door meeting, the visit was not unconnected with the zeal of the Governor of Katsina State to tap into the innovative road infrastructure agenda of Mr. President in the Works sub-sector.

FG To Tackle Road Challenges Headlong In 2024...
Jan
05
2024

FG to Tackle Road Challenges Headlong in 2024


The Federal Government has promised to address all obstacles hindering delivery of road projects in the country   to ensure actualization of the road projects to the benefit  of  Nigerians before the end of 2024.

 

Work Minister, David Umahi who made the promised during his meeting with Directors in Abuja on Thursday urged them to be on their toe in working to ensure that vision for sustainable road infrastructure development in the country by the President Bola Tinubu’s administration in line with Renewed Hope Agenda is achieved.


The Minister proposed a review of agreements, cost, geo-technical evaluation among others of some of the existing contracts with a view to addressing the bottlenecks that have delayed or hindered execution of road projects across the country in the past.

 

Speaking further on the road projects, he said Mr. President approved huge, large sum of money for the Ministry in the appropriation in order for the Ministry to deliver its mandate. "

 

" We’ve some supervisions work to be done on roads, the Directors and the Consultants must work together and any erring contractors that don’t keep to contract agreement would be penalized”.

 

According to him, “I won’t be able to go back to Mr. President and Federal Executive Council for re-scope of work and contract if the contractors deliberately delay the progress of road construction".

 

Reiterating his commitment to the welfare of the workers, Umahi said what matters most is how much of roads has been constructed or made motorable to ease the sufferings of Nigerians when it comes to mobility, adding that irrespective of position or social status, any worker who is found wanting in terms of performance risks being kept aside or outright replacement.


The Minister told directors that there is a difference between his ministry and other ministries, departments, and agencies, MDAs, is due to the fact that the Works Ministry is measured in terms of the how much and the impact of the roads constructed.

 

“The difference between us and other MDAs is that ours is what you can achieve in terms of roads, not speech. And our office is not the normal civil service office where you spend eight hours and close, at times you need to even work at weekend,” he assured that anyone who works would be appreciated.

 

Umahi appealed to directors to be God fearing in handling the assignment of the ministry, while disclosed that the President had made available the needed funds for execution of road contracts, but that there was need for review of the contract terms due to previous experiences.

 

The Minister tasked the directors and contractors on integrity, identifying bad construction method, poor supervision, substandard materials as the foremost challenges of road contract execution in Nigeria. “18 retired security personnel are to be engaged in supervision and monitoring for each of the six geopolitical zones of the country”, he said.

 

The representative of Permanent Secretary at the Meeting, Engr O.O. Awosanya earlier thanked the Honourable Minister for creating enabling environment for staff to function well through provision of incentives and welfare, said " Since I have been in the ministry this is the first time i will be seeing a minister so dedicated to staff welfare provisions".

 

Director Highways Southwest Engr Adedamola Kuti while responding to the minister’s remarks assured the Minister that both the staff and the consultants would work in synergy to deliver on the mandate of the Ministry.

REMARKS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT AT THE FHMUD MOU SIGNIN...
Dec
21
2023

REMARKS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT AT THE FHMUD MOU SIGNING WITH CONTINENTAL CIVIL AND GENERAL CONSTRUCTION COMPANY LIMITED AND CEEZALI LIMITED ON THURSDAY, DECEMBER 21, 2023.

 

Protocols

 

Good morning, ladies, and gentlemen.
1.    I am really excited because after several months of strategic planning, engagements and hard work we are today set to record a significant milestone in our quest to deliver on the Renewed Hope Vision of His Excellency, President Bola Ahmed Tinubu for Housing and Urban Development.
2.    In a short moment we will be signing a Memorandum of Understanding with a consortium comprising CONTINENTAL CIVIL AND GENERAL CONSTRUCTION COMPANY LIMITED and CEEZALI LIMITED for the delivery of 100,000 housing units across Nigeria.
3.    The housing units are to be delivered under a Strategic Public Private Partnership (PPP) as part of our Renewed Hope Cities and Estates Program. Under the terms of this partnership the consortium will be the ones to provide construction finance and build the housing units to completion based on agreed housing designs and prices.
4.    The Federal Ministry of Housing and Urban Development on its side will facilitate provision of affordable mortgage loans to offtakers through the Federal Mortgage Bank of Nigeria (FMBN), facilitate the approval and the grant of all legal titles in select lands for the projects as part of its efforts to create an enabling environment for private sector investment in the housing sector.  
5.    Target beneficiaries are Nigerians in both the formal and informal sectors of the economy that contribute to the National Housing Fund (NHF) Scheme.
6.    The 100,000-housing Renewed Hope Housing Project is to be implemented in two phases. Phase One will deliver 20,000 in the Federal Capital Territory (FCT) while Phase Two will deliver 60,000 houses in select locations across the six geopolitical zones of the Federal Republic of Nigeria.
7.    At 25 jobs per unit, this PPP will create 2,500,000 direct and indirect helping to achieve His Excellency, President Bola Ahmed Tinubu’s target to lift 100million Nigerians out of poverty.
8.    The housing problem that Nigeria faces is massive, and I sincerely believe that the task of developing Nigeria’s housing sector, ensuring increased access to decent and affordable housing is a collective endeavor. It is a patriotic job that requires the contribution, and active participation of all stakeholders across the entire housing value chain - from developers, mortgage bankers, development finance institutions, and government-owned housing institutions. We are all part of the housing eco-system and all that we do in our various spaces and areas of responsibilities impact positively or negatively on our collective desire to build a better and functional housing system that works for Nigerians.  
9.    We recognize that we cannot tackle Nigeria’s housing problem from budgetary allocation. So, we have prioritized Public Private Partnerships as effective tools for complementing government efforts to bridge the housing deficit.
10.    And we aim to do it right. That is why we have developed a robust framework to ensure that each one that we as a Ministry enters is structured to succeed. Our PPP model involves transparent agreements, clear roles and responsibilities, and risk-sharing mechanisms to ensure accountability, fairness, and long-term sustainability.
11.    These partnerships enable leveraging the strengths of both the public and private sectors, fostering innovation, efficiency, and increased access to funding. By combining the resources, expertise, and creativity of both sectors, we plan to facilitate the development of affordable housing, infrastructure, and sustainable communities that align with the diverse needs of our populace. Our long-term goal is to address the housing shortage and enhance the quality of life for our citizens.
12.    I would like to commend the leadership of the consortium CONTINENTAL CIVIL AND GENERAL CONSTRUCTION COMPANY LIMITED and CEEZALI LIMITED for their passion for this project. And I look forward to working with them towards ensuring that we deliver as spelt out in the MoU.
13.    With this MoU Signing, we are ending the year 2023 on a very strong note and setting a solid foundation for a strong start for the new year 2024.
14.    Thank you.

Ministry Of Housing Signs MOU With Consortium On Delivery Of 100,000 Housing Units...
Dec
21
2023

Ministry of Housing Signs MOU with Consortium on Delivery of 100,000 Housing Units

 

In its continued effort to leverage private sector collaboration towards bridging the housing deficit, the Ministry of Housing and Urban Development has signed a Memorandum of Understanding with a consortium to deliver 100,000 affordable housing units across the nation. The MOU, signed Thursday 21 December 2023 at the Ministry’s headquarters in Abuja, marks a milestone for the Ministry’s Action Plan in view of its Renewed Hope Cities and Estates Projects.

 

The agreement with the Consortium of private sector-led companies, headed by Continental Civil and General Construction Company Limited and Ceezali Limited, represent the heralding of renewed attention to Public Private Partnership arrangements, which the ministry has made a major part of its housing delivery strategy. The units are to be delivered in two phases, starting with 20,000 units in the Federal Capital Territory followed by 80,000 units across the six (6) geopolitical zones.

 

In his remarks, Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa noted that the MOU was the result of months of hardwork and strategic planning resulting in a robust framework to ensure the PPP arrangement was structured to succeed. Speaking on the modalities of the MOU, Arc. Dangiwa said, “under the terms of this partnership, the consortium will be the ones to provide construction finance and build the housing units to completion based on agreed housing designs and prices.

 

“The Federal Ministry of Housing and Urban Development, on its side, will facilitate provision of affordable mortgage loans to off-takers through the Federal Mortgage Bank of Nigeria (FMBN), as well as facilitate the approval and grant of all legal titles in select lands for the projects as part of its efforts to create an enabling environment for private sector investment in the housing sector”, he noted.

 

Acknowledging the severe housing crisis in Nigeria and the inadequacy of budgetary allocations to address the deficit, Dangiwa emphasised the need to see increased access to decent and affordable housing as a collective endeavour, requiring the active participation of all stakeholders across the entire housing value chain. “These partnerships enable leveraging the strengths of both the public and private sectors, fostering innovation, efficiency, and increased access to funding. Our long-term goal is to address the housing shortage and enhance the quality of life of our citizens”, he added.

 

The Minister further touched on the job creation component of the project, noting that it is in line with the vision of President Bola Tinubu to raise 100 million Nigerians out of poverty. Notably, the PPP arrangement will create 2.5 million direct and indirect jobs at 25 jobs per housing unit.

 

He asked the consortium to continuously engage the technical staff of the ministry in the siting, design, monitoring, and cost evaluation of the project, while urging them to ensure the delivery of the project within agreed timelines.

 

Consultant for the consortium and Principal Partner of C23 Consultants Limited, Damola Akindolire, noted that the PPP arrangement is first of its kind in Nigeria, in respect of the scale and scope of the project. He added that the MOU speaks to the focus and seriousness of the leadership of the ministry to address the housing deficit in Nigeria.

 

On their part, Executive Director of Continental Civil and General Construction Company Limited, Alamu Adegbenga and Contract Manager of Ceezali Limited, Sule Wada, assured the Minister of their technical and financial capacities to deliver on the project based on their track record and experience.

 

Highlight of the event was the signing of the MOU by the Minister and representatives of the consortium.

GOODWILL MESSAGE BY THE HONOURABLE MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AH...
Dec
17
2023

GOODWILL MESSAGE BY THE HONOURABLE MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AHMED MUSA DANGIWA, AT THE AFRICA HOUSING AWARDS AT THE INTERNATIONAL CONFERENCE CENTER, ABUJA 17TH DECEMBER 2023

 

1.    Protocols
2.    First, I would like to thank the organizers of the Africa Housing Awards for inviting me to deliver a goodwill message at the 5th edition of this annual event.
3.    I sincerely believe that the task of developing Africa’s housing sector, ensuring increased access to decent and affordable housing is a collective endeavor. It is a patriotic job that requires the contribution, active participation, and monitoring of all stakeholders and stakeholders across the entire housing value chain. From developers, mortgage bankers, development finance institutions, government owned housing institutions, housing policy leaders, advocacy institutions and groups and so many others. We are all part of the housing eco-system and all that we do in our various spaces and areas of responsibilities impact positively or negatively our collective desire to build a better and functional housing system that works for Africans.  
4.    This is why I want to take a special moment to commend those who conceived, birthed, and have sustained the Africa Housing Awards. I am particularly impressed at the continental theme of the Awards: Africa – Not Nigeria Africa Awards.
5.    This yearly practice of recognizing and honoring housing industry personalities, leaders in both private and public sectors who have demonstrated uncommon commitment in the discharge of their duties is a vital to promoting the spirit of excellence in the industry.
6.     As the Minister of Housing and Urban Development, I would like to encourage all stakeholders in housing delivery in all countries in Africa and Nigeria to never loose sight of the responsibility that goes with each office that we hold. Whether in the private sector or the public sector – we must be constantly reminded that our job is to house Africa. And there are millions in need of housing, and they cut across all income segments. We must at all times never lose sight of the fact that the decisions that we take, the energy that we commit or don’t commit have practical results.
7.    So, to all the institutions, individuals that are going to take home awards today, I want to congratulate you for being outstanding in the discharge.
8.    Their recognition and honor should stir all of us to work harder towards ensuring that we fix the housing shortfall in Africa as we unlock the catalytic power of the housing sector to ignite national development.
9.    At the Ministry of Housing and Urban Development we have outlined a bold Action Plan to Actualize the Renewed Hope Vision for Housing and Urban Development in Nigeria.
10.    As part of our plans to ensure that housing agencies under the supervision of the Ministry are optimized to deliver on our target of providing affordable homes to Nigerians, we have composed a Housing Reform Team of experts, stakeholders, agency representatives, professional bodies, and academia to develop a robust framework for reform of the housing sector including thorough review of relevant laws and facilitation of necessary legislative amendments. This includes the Land Use Act, 1978, National Housing Fund (NHF) Act,1992, Federal Mortgage Bank of Nigeria (FMBN) Establishment Act, 1993, Federal Housing Authority (FHA) Act,1973, PenCom Act to allow for increased investment in housing.
11.    We are also working to implement the much-needed reforms that will ensure quick, easy, and efficient access to land. We have composed a land reforms team comprising state governments, traditional rulers, relevant agencies, professional bodies, academia, stakeholders to ensure buy-in and inclusivity.
12.    In line with the Renewed Hope plan to ensure that all Nigerians including the NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation, we are also creating the framework for the establishment of a National Social Housing Fund (NSHF). This is because we believe that access to decent shelter is a not only a necessity but a human right and that all Nigerians across all income segments deserve a decent home to live and grow.
13.    We have also prioritized building materials manufacturing in the country. This will ensure economic growth, create jobs, and reduce dependency on imports. To ensure success, we have composed a Building Materials Manufacturing Task Team comprising of experts and representatives from relevant government agencies, academia, professional bodies, and industry associations. They will conduct a thorough assessment of the current state of the building materials manufacturing sector and produce a strategic plan for reforming the sector for implementation. Our plan is to build six (6) building materials manufacturing hubs, one in each of the six (6) regions of the country.
14.    To increase the stock of housing supply, we have also composed and will inaugurate a Multi-Agency Project Delivery Team. The Team will ensure that all housing agencies including FHA work together towards optimizing their strengths to increase the stock of quality houses to Nigerians. The Team comprises highly qualified and experienced professionals with expertise in housing development, urban planning, infrastructure, finance, and project management.
15.    Under our New City Development Plan, the Ministry plans to lead partnerships with the private sector, local and international investors, towards redefining the concept of cities in Nigeria and decongesting city centers and state capitals in line with the Renewed Hope Agenda of Mr. President.
16.    The first phase of the New City Development Plan aims to deliver Renewed Hope Cities ranging from 1,000 housing units per site in one location in each of the six geo-political zones of the country and FCT namely: Abuja, Lagos, Kano, Borno, Nasarawa, Rivers, and Enugu States, while the remaining thirty (30) States will have Renewed Hope Estates each with a minimum of 500 housing units.
17.    The Renewed Hope Cities will have inclusivity at their core: They will include Multi-Level Flats to cater to low-medium income earners; Terrace and Detached Bungalows and Duplexes for the high-income earners. The Renewed Hope Estates will have 1,2- and 3-bedroom affordable bungalows.
18.    Overall, we aim to deliver under this phase 1, a total of 40,000 homes from a mix of sponsors comprising the Federal Ministry of Housing and Urban Development’s budgetary allocation, the Federal Mortgage Bank of Nigeria (FMBN), and through Public Private Partnerships with reputable developers in the delivery of the new cities.
19.    Ownership Options include Mortgage Loans, Rent-to-Own and Outright Purchase. At 25 jobs per unit, the first phase of the project will create direct and indirect 1,000,000 jobs helping to achieve the target to lift 1million Nigerians out of poverty.
20.    Under Phase 1 of the Slum Upgrading Programme, the Ministry plans a total of 26 sites nationwide. This includes four (4) sites in each of the six regions of the country totaling twenty-four (24) and two (2) in the FCT. The key services to be provided at the identified sites will include water supply, solar streetlights, rehabilitation of access roads, construction of drainages and waste management and sanitation services amongst others.
21.    These are some of our key focus areas at the Ministry of Housing and Urban Development. We are fully aware of the challenges ahead of us and are passionate about making a difference. However, we know that we are only one part of the housing value chain and as such know that for us to achieve, we would need the support of all stakeholders.
22.    So, once again I want to thank the organizers of this 5th edition of the Africa Housing Awards, and I congratulate all the winners while encouraging us all to continue to work harder towards ensuring that we provide increased access to decent and affordable housing to all Africans.
23.    Thank you all.

Farewell To A Rare Gem, Okwadike...
Dec
16
2023

Farewell To a Rare Gem, Okwadike

 

Hon. Minister of Works, Sen. Umahi commiserates with the family, government and people of Anambra  State over the death of the former Governor  of Anambra State, Dr Ezeife.

 

I received with a deep sense of sympathy the sad news of the glorious exit of the former Governor of Anambra State and elder statesman of note ,His Excellency,  late Dr Chukwuemeka Ezeife who journeyed to eternal  glory  on the 14th day of December,2023 at the of 85 years.

 

2. Late Dr Chukwuemeka Ezeife   was an advocate of selfless leadership and crusader for the cause of justice and national integration.  He was unequivocal on his stand for an egalitarian nation where all Nigerians shall enjoy equal, just and fair treatment notwithstanding their natural, cultural or religious inclinations. He was a prominent voice on national conversations. The loss of this dear nationalist has no doubt created a deep vacuum in the hearts of his loved ones and, indeed, all who shared in the values of his ideals. I heartily convey my deepest condolences to his family, the government and people of Anambra State for the loss of this great iconic leader and national figure who left inspiring life and times   worthy of emulation. May his gentle soul rest in perfect peace, amen.

 

3. Please, accept the assurances of the compassionate considerations, esteemed regards and best wishes  of my family, the management  and staff of Federal Ministry of  Works.

 

H.E. Sen. Engr. Nweze David Umahi, FNSE, FNATE, CON, GGCEHF
Hon. Minister of Works

BRIEF BY THE HONOURABLE MINISTER OF WORKS, SENATOR. (ENGR) NWEZE DAVID UMAHI CON, FNS...
Dec
12
2023

BRIEF BY THE HONOURABLE MINISTER OF WORKS, SENATOR. (ENGR) NWEZE DAVID UMAHI CON, FNSE, FNATE ON THE OCCASION OF THE PRESENTATION AND DEFENCE OF THE MINISTRY’S 2024 BUDGET TO THE JOINT COMMITTEE ON WORKS

The Chairman,
Senate Committee on Works,
Distinguished Senators,
The Chairman,
House Committee on Works
Honourable Members

1.0 INTRODUCTORY REMARKS

I wish to express the appreciation of the Ministry to the Joint National Assembly Committee on Works for this opportunity to present and defend the Ministry’s 2023 Budget Performance and 2024 Budget Proposal. The Ministry received the letter Ref. No. NASS/S&H/COW/01/10/1 dated 30th November, 2023 from the Joint Committee on Works requesting for details and submissions on issues pertaining to the performance of the 2023 Appropriation and 2024 Budget proposal. These documents have also been earlier submitted in response to the said letter. I will also like to explain and highlight some aspects of the submissions in the course of this budget defense.

2.0 OVERVIEW OF THE 2023 APPROPRIATION 
The sum of N534, 455,695,989.00 was appropriated to the Ministry of Works and Housing and its Parastatals in the 2023 fiscal year. From this amount, Works and Housing Sectors of the then Ministry was allocated a total Capital of N453,255,980,966.00. Following the demerger of the Ministry, Federal Ministry of Works was allocated the sum of N383, 351,656,449.00 as Capital, Overhead was in the Sum of N525,362,343.96 and Personnel was in the Sum of N6,916,751,203.00. The details of the Appropriation are as follows:

(a) Capital Allocation:                
i. Main Ministry of Works:   N383,351,656,449.00
ii. Parastatals:                    N 46,215,578,221.00
Total                                  N429,567, 234, 670.00
(b) Overhead Cost:                            
i. Main Ministry:                 N535,362,344.40
ii. Parastatals:                    
a.Office of the Survey-General of the Federation (OSGOF)   N239, 664,804.00
b. Federal School of Surveys (FSS), Oyo                               N50, 523,550.00
c. Federal Roads Maintenance Agency (FERMA)                   N17, 525,286,292.00
d. Council for the Regulation of Engineering in Nigeria (COREN)    N9, 691,801.00
e. Surveyors’ Registration Council of Nigeria (SURCON)        N14, 971,301.00
Total                                                                                          N18,375,500,092.4

(c) PERSONNEL COST 
i.    Main Ministry                   N6,916,751,203.00
ii.     Parastatals                    N5,234,644,736.00                  
Total                                      N12,151,395,939.00

3.0 2023 BUDGET RELEASES/PERFORMANCE

As earlier said, the Capital Allocation to the Ministry was N383, 351,656,449.00 after the demerger of Federal Ministry of Works and Housing. The releases so far to the Ministry was in the sum of N184,165,147,332.29, which represents 48.01% of the Capital Allocation in the 2023 Appropriation. This leaves a balance of N199, 405,010,166.71 to be released by the Federal Ministry of Finance (FMF).

3.10. Capital Projects
The sum of N184,165,147,332.29 released up to date to the Ministry from the 2023 Budget Appropriation had been utilized for payments of some certified Certificates for executed works on roads and bridges by Highway, projects of Engineering Services and Common Services Departments.  It is to be noted that as at the end of November 2023 the Ministry had a cumulative unpaid certificate in the sum of N1,507,873,365,516.02 (One Trillion, Five Hundred and Seven Billion, Eight Hundred and Seventy-three Million, Three Hundred and Sixty-five Thousand, Five Hundred and Sixteen Naira, Two Kobo) only for all inherited on-going highway and bridge projects. Apart from the pressure on the resources to pay, there is the inadequacy of annual budgetary provisions where in most cases N100m or N200m and even less was provided for projects estimated to cost above twenty- fifty billion Naira or even more. Awarding such projects even though appropriated is difficult on its own because the provision is inadequate to even pay 10% for mobilization whereas the Procurement Act prescribes 30% mobilization. The details of all the 2023 Budget Performance for Highways Capital Projects are provided in the document attached as Annexure I.

3.20 Overhead
Out of the Total Approved Overhead of N535,362,344.40 the sum of N312,294,700.90 was released to the Ministry for overhead costs for the period January - July, 2023, which represents 58.33% of the budgetary provision with an outstanding sum of N 223,067,643.50.

3.30 Personnel Cost
The Personnel Cost of N12,598,351,319.00 for the Ministry is being implemented through the Integrated Payroll and Personnel Information System (IPPIS) programme in the Office of the Accountant-General of the Federation. 

4.0 REVENUE GENERATED
The sum of N723,063,678.62 was generated as revenue from January to November, 2023 and all the revenue realized have been remitted to the consolidated Revenue Account (evidence of IGR remittance enclosed).

5.0 2024 BUDGET PROPOSAL
The total sum of N 657,228,251,596 was proposed for the Federal Ministry of Works and its Parastatals for Capital, Personnel and Overhead estimates in the 2024 Appropriation Bill. The breakdown of the proposals is as follows:        

5.10 Capital Budget Proposal            

a). Main Ministry of Works                                           N 566,466,977,361
b). Parastatals    
i. Federal Road Maintenance Agency (FERMA).        N 51, 282,456,911
ii. African Regional Institute for Geo-Spacial Information Science and
Technology AFRIGIST (RECTAS)                              N 104,039,920
Grand Total                                                                N 617,853,474,192

5.20 Overhead Budget Proposal                
a). Main Ministry of Works                                         N 668,116,856.00
b). Parastatals:
i. FERMA                                                                   N 22,027,209,696.
ii. RECTAS/AFRIGIST                                               NIL                          
Grand Total                                                                N 22,695,326,552

5.30 Personnel Cost Proposal             
i. Main Ministry of Works                                            N 12,598,351,319
ii. Parastatals                                                             N 4,081,099,533
Grand Total                                                                N 16,679,450,852

Please note that without any presidential pronouncement, the following Parastatals which have been under the Ministry of Works have been provided for in the Budget Proposal for the Ministry of Housing and Urban Development as follows:
i.    Office of the Surveyor-General of the Federation (OSGoF);
ii.    Federal School of Surveying, Oyo (FSS); 
iii.    Council for the Regulation of Engineering in Nigeria (COREN); and
iv.    Surveyors’ Council of Nigeria (SURCON) 
It will be good that these Committees do get these Parastatals back to the Federal Ministry of Works. 

6.0 CATEGORIZATION OF ONGOING HIGHWAY PROJECTS UP TO 2023

The Ministry undertook a total of 2,097of on-going/inherited projects at a total Contract Sum of N13,835,640,624,786. The total amount certified to date stood at N4,772,770,148,140.41, while the total amount paid was in the sum of N3,140,569,453,163,82 as at November, 2023. 3 details are shown in Annex I.
Some of the projects are categorized according to special funding mechanism as follows:

6.10 Highway Project Financed with Presidential Infrastructure Development FUND (PIDF).
A total of Four selected critical projects are being funded under the Presidential Infrastructure Development Fund (PIDF) Project which is managed by the Nigerian Sovereign Investment Authority (NSIA).  The projects are:
a.    Expansion and upgrading of Lagos-Ibadan Expressway Section I (Lagos-Shagamu);
b.    Expansion and upgrading of Lagos-Ibadan Expressway Section II (Shagamu-Ibadan);
c.     Reconstruction/Rehabilitation of Abuja-Kaduna-Kano Road; and
d.     Construction of 2nd Niger Bridge and two Bypasses at Asaba and Onitsha.

As at date, the total sum of N846, 365,489,635.12 has been certified out of the initial projects cost N1,535,375,595,518.43. This translates to a performance of 55.12%. The Lagos-Ibadan Expressway has been substantially completed to about 90% but we still lack fund to complete the project. The Abuja-Kaduna-Kano Road is in three sections with about 127km uncompleted in section I (Abuja-Kaduna). Section II which is Kaduna-Zaria is fully completed and section III which is Zaria-Kano is on-going with 20km left uncompleted. The total cost of the three sections is about N655billion. The contractor is seeking for a review of contract to about N1.37trillion to complete the project. We are reviewing the request. However, even though the project will not get up to N1trillion when fairly reviewed, we believe that the unit rates ought to be reviewed. For example, the subsisting unit rate of Asphalt on the project is about N11,000 per square meter, whereas the real cost now is not less than N20,000 per square meter. We have requested the contractor to execute the first 40km of section I on concrete. It is important to note that we do not have fund to continue the project by February 2024 if no funding is injected into the project. 

The 2nd Niger Bridge has been completed and was recently handed over to the Ministry. Additionally, there remains the construction of the Approach roads 2A and 2B which were awarded by FEC but have funding challenges to take-off.  The remaining two Bypasses in Asaba (2A) and Onitsha (2B) awarded to Julius Berger Nigeria Plc and Reynods Construction Company Nigeria Limited respectively, during the last Administration was initially estimated at about N200billion but now with inflation, the cost may be up to N260billion. There is no funding for these projects and the projects have not taken off. Let me note that without these Bypasses, the completed 2nd Niger Bridge will be almost inoperative. The details of these projects are as shown in Annexure II.

6.20 Highway Projects Financed with the Sovereign SUKUK Fund
The Federal Government through the Debt Management Office (DMO) initiated Sukuk Funding Programme for financing road infrastructure in 2017. The total sum of N683.122bn was raised to fund 25, 28, 44, 71 and 63 number projects in years 2017, 2018, 2020, 2021 and 2022 respectively. All the works milestones for the Sukuk in year 2017, 2018, 2020 and 2021 were completely drawn down while the 2022 Sukuk, issued in the sum of N110,000,000,000.00 is on-going. A total of 63 selected critical projects are being funded under the 2022 Sovereign Sukuk Issuance. As at end of November 2023, the total sum of N50,537,288,079.45 was drawn down translating to a performance of 46%. The details of execution of the projects and drawdown of the 2022 Sukuk Bond is as shown on Annex III;

6.30 The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase I
The NNPC joined the Road Infrastructure Development & Refurbishment Tax Credit Scheme programme by undertaking to finance 21 roads in the sum of N621bn with total length of roads of about 1,804.6km under the NNPC Phase I. These roads were identified by key stakeholders such as the NNPC, Petroleum Tanker Drivers Association (PTD) and the Ministry etc. as being crucial for the efficient distribution of petroleum products across the nation. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N247,729,252,899.54 out of the Federal Executive Council (FEC) approved sum of N621,237,164,794.59 representing 39.88% performance. The funding gap here due to inflation is estimated at over 250bn. The details of NNPC Phase I Funded Projects are attached as Annex IVA; 

6.40 The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase II
The NNPC Phase II Funded Projects were approved by the Federal Executive Council in the sum of N1,969,700,168,910.78 for the execution of 44 No. roads with total length of 4,554.19km while the initial Contract Sum was about N3.969trillion. This leaves a funding gap of over N2trillion at the time of starting the projects. Presently, with inflation, the funding gap to have the NNPC Phases I & II completed shall stand at about N3.56trillion (Inflation about N1.5trillion) for two years from now. This funding gap is neither appropriated for nor has any source of funding. This means that without the kind intervention of this Distinguished and Honourable Joint Committees of Works, these projects will not go on mostly from March 2024 when the NNPC funding would have been exhausted. Your kind intervention and advice are highly, highly and urgently solicited. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N752,093,618,603.51 representing 38.18% performance. The level of drawdown seems low because most of the projects needed to be reviewed due to the inflation, The details of NNPC Phase II Funded Projects are attached as Annex IVB.

6.50 Other projects funded under Road Infrastructure   Development & Refurbishment Tax Credit Scheme. 
Several Companies have leveraged on the Executive Order No.7 of 2019 to commit investments in the construction/rehabilitation of roads and obtain Tax credit. Companies like NLNG Limited, Dangote Industries Limited, BUA International Limited, MTN Nigeria Communications Plc, Mainstream Energy Solutions Limited and GZI Industries projects have embraced the Road Infrastructure Development & Refurbishment Tax Credit Scheme program. Twenty-one projects at a total cost of N1.338trillion outside of those being funded by the NNPCL are being executed under this Scheme. The details are attached as Annex IVC; and
a)    Projects funded from Multi – Lateral Loans. 
4Nos. major highway and bridge projects are being funded through Multilateral Loans and grants from the African Development Bank (AfDB) and the China Exim Bank. The details of these projects are attached as Annex V.

7.0 2023 APPROPRIATION OF ALL ONGOING EMERGENCY/SPECIAL REPAIRS AND LIMITED REHABILITATION PROJECTS 

These are projects being executed under emergency repairs works along the Federal Highway network. The projects under this category have a total contract cost of N419,841,989,869.00, with a total amount certified in the sum of N307,486,496,856.58, while the total amount paid is in the sum of N 123,213,264,774.77, the Ministry is indebted to Contractors to the tune of N 184,273,232,081.81. The details of these projects are included in Annex I.

8.0 INTERVENTION ON TERTIARY INSTITUTIONS PROJECTS  
These are projects being executed under the intervention in Federal Government Tertiary Institutions. Out of 108 projects under this category at a total contract cost of N15,641,954,804.16, 61 projects have been completed and handed over at a total cost of N10,790,866,435.35 as at end of November 2023. Twenty-one projects at a total cost of N3,874,482,841.53 have been completed awaiting handover, while the remaining 26 at a total cost of N3,491,998,752.77 are on-going. The details of these projects are attached as Annex VII.

9.0 OVERGROWN VEGETATION CONTROL PROJECTS  
These are projects being executed under the intervention on Federal Government Tertiary Institutions. The projects under this category have a total contract cost of N2,333,448,750.00, with a total amount certified in the sum of N1,795,927,968.71, while the total amount paid is in the sum of N62,060,468.75, the Ministry is indebted to Contractors to the tune of N1,733,867,499.96. The details of these projects are included in Annex I.

10.0 PROJECTS PRIORITIZED FOR COMPLETION 2022-2024
In spite of all odds, 21 major road and bridge projects have been completed and some were commissioned, while others are ready for commissioning. The total cost of the completed major road and bridge projects is in the sum of N498,802,362,642.46 with a total length of    489. 97km.  Also, to be completed in 2024 is the 260 Emergency Repair works in the 2023 Supplementary Appropriation at a total cost of about N260bn. The detail of completed projects is attached as Annex VI.

11.0 BRIDGE CONSTRUCTION/ REHABILITION PROJECTS
Under the 2023 budget, the Ministry undertook massive rehabilitation of bridge projects, some of which have never been maintained since they were constructed over 50 years ago. Human activities on these bridges (i.e. vandalization, fire incidents) have left these bridges in deplorable state and unserviceable conditions. The Ministry is trying to sustain these critical works in the 2024 budget as well as undertake the construction of new bridges where there was none in order to reduce travel time as well as the reconstruction of bridges to replace collapsed ones.

These projects are:
a).    Comprehensive Repairs of the damaged elements of the Third Mainland bridge superstructure: This was procured this year and works are currently ongoing and is satisfactory so far. The second Phase which involves the substructure repairs is being processed for award.
b).    Comprehensive emergency repairs of Eko and Marine bridges in Lagos State: Works are ongoing on these bridges. The Contractor has attained appreciable progress and is being supported financially to enable expeditious completion due to the emergency nature of the works.
c).    Proposed Rehabilitation of Carter, Iddo, Liverpool and Iganmu bridges in Lagos State: The present condition of the above bridges calls for urgent rehabilitation works to restore the bridge integrity and forestall further deterioration that may be detrimental to road users. In this regard, the procurement process is already ongoing within the Ministry for the emergency award of contract for the repairs/rehabilitation of these bridges.
d).    The Rehabilitation of Jimeta bridge in Adamawa State and Murtala Mohammed bridge at Koton Karfe along Lokoja – Abuja Road; Works on these bridges are ongoing and will soon be completed.
e).    Proposed construction of Shendam bridge in Plateau State, Reconstruction of failed bridges in Enugu State and the Construction of Buruku bridge in Benue State; and
f). Reconstruction of three failed Bridges on East/West Road
These are new bridges that are required to ameliorate the sufferings of the host communities as well as other commuters. Procurement of contract for the construction of these bridges are already at an advanced stage and will soon be completed. Funds will be needed to bring them into reality.

12.0 NEW PROJECTS IN 2024 BUDGET  
There are new projects captured under the 2024 Budget at a total cost of N102,956,624,538.00. See Annexure 13

13.0 PROSPECTS AND PROSPECTS OF THE 2024 BUDGET FOR HIGHWAY PROJECTS

The policy thrust regarding the 2024 budget for highway projects is to ensure completion of some critical on-going projects which have attained significant levels of completion while keeping the rest alive through minimal appropriation. 693 new projects have been proposed in the 2024 budget, which are critical to improving road network connectivity and thus enhancing traffic circulation on the Federal Road network, necessary for boosting socio-economic activities in the country. The primary objective is enabling the Ministry achieve its mandate in providing a quality Federal Road network that serves as an environment to aid socio-economic growth of the country.

The main challenge to highways development in the Country remains inadequate funding. As at date, Government is committed to highway contractors to the tune of about N13.835 trillion with a total of about N1,507,873,365,516.02 unpaid certificates for executed works. Secondly, the dearth of younger Engineers/Technical Officers in the Ministry as a result of embargo on employment is affecting effective project supervision at the sites. It is expected that more sources of funding of highway projects be explored as well as lifting the embargo on employment of needed Engineers/Technical officers at middle level to enhance supervision of projects. Our Ministry has set up six committees to review all debts, approved and unapproved variations on prices of basic rates, and all augmentations that occurred before May 29th 2023 and from May 30th 2023 till date.

14.0 RECOMMENDATIONS
14.10 From the fore-going, I would like to recommend as follows:
a)    The provision of an Emergency Fund of about 30% of the Budget Provision to cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons;
b)    An increase of the Ministry’s present budgetary allocation to about N1.5tr to complete at least 10 selected critical roads and bridges in each of the six geo-political zones of the country;
c)    Urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
d)    Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the projects unit rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while unit rates regime will take effect on contractors in line with the current realities of the construction industry.
e)    More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges;
f)    Raising of Bonds from the Capital Market to finance road development in the country; 
g)    Creation of an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) can be effective; and
h)    That appropriations for projects be such that no projects when started should last for more than four years. 

14.20 ISSUE OF ASPHALT (FLEXIBLE) VERSUS CONCRETE (RIGID) PAVEMENT
It would be my great pleasure to clarify the misunderstanding of the Ministry’s new policy direction regarding the use of Rigid pavement on her projects. I have to state categorically that no Contractor is prevented from executing the scope works originally signed with the client once certain conditions are observed, which are provision of a 15year shelf-life Insurance Guarantee for the works and a maximum of 5% of Variation of Price (VoP) in the Contract. The Ministry’s new policy is to prevent excessive augmentation of contracts considering the scarcity of Forex and weakening of the Naira against the Dollar which makes the cost of bitumen (which is fully imported) increase in geometric progression against the arithmetic progression rise in cement prices in concrete road pavements. In these times of rising inflation and scarce resources, the Country needs to look inwards to conserve foreign exchange.

15.0 COMMENDATIONS
We thank the President and Commander-in-Chief of the Federal Republic of Nigeria, His Excellency, Senator Asiwaju Bola Ahmed Tinubu, GCFR for the intervention of his Renewed Hope administration in the Works sub-sector and approval of an enhanced budget envelop for the Federal Ministry of Works. We also thank the leadership of National Assembly, the Chairmen and members of the Works Committees and indeed members of the National Assembly for their painstakingness in ensuring the speedy passage of the 2024 Appropriation Bill. 

Brief By The Honourable Minister Of Works, Senator. (Engr) Nweze David Umahi CON, FNS...
Dec
12
2023

Brief by the Honourable Minister of Works, Senator. (Engr) Nweze David Umahi CON, FNSE, FNATE on the Occasion of the Presentation and Defence of the Ministry’s 2024 Budget io the Joint Committee on Works

 

The Chairman,
Senate Committee on Works,
Distinguished Senators,
The Chairman,
House Committee on Works
Honourable Members

 

1.0    INTRODUCTORY REMARKS
I wish to express the appreciation of the Ministry to the Joint National Assembly Committee on Works for this opportunity to present and defend the Ministry’s 2023 Budget Performance and 2024 Budget Proposal. The Ministry received the letter Ref. No. NASS/S&H/COW/01/10/1 dated 30th November, 2023 from the Joint Committee on Works requesting for details and submissions on issues pertaining to the performance of the 2023 Appropriation and 2024 Budget proposal. These documents have also been earlier submitted in response to the said letter. I will also like to explain and highlight some aspects of the submissions in the course of this budget defense.

 

2.0    OVERVIEW OF THE 2023 APPROPRIATION
The sum of N534, 455,695,989.00 was appropriated to the Ministry of Works and Housing and its Parastatals in the 2023 fiscal year. From this amount, Works and Housing Sectors of the then Ministry was allocated a total Capital of N453,255,980,966.00. Following the demerger of the Ministry, Federal Ministry of Works was allocated the sum of N383, 351,656,449.00 as Capital, Overhead was in the Sum of N525,362,343.96 and Personnel was in the Sum of N6,916,751,203.00. The details of the Appropriation are as follows:

(a)     Capital Allocation:                
i. Main Ministry of Works:                 N383,351,656,449.00
ii. Parastatals:                                 N 46,215,578,221.00
Total                                               N429,567, 234, 670.00

 

(b)    Overhead Cost:                            
i. Main Ministry:                     N535,362,344.40
ii. Parastatals:                    
a. Office of the Survey-General of the Federation (OSGOF)         N239, 664,804.00
b. Federal School of Surveys (FSS), Oyo                                  N50, 523,550.00
c. Federal Roads Maintenance Agency (FERMA)                      N17, 525,286,292.00
d. Council for the Regulation of Engineering in Nigeria (COREN) N9, 691,801.00
e. Surveyors’ Registration Council of Nigeria (SURCON)             N14, 971,301.00
    Total                                                                                  N18,375,500,092.4

 

(c)    PERSONNEL COST
i.    Main Ministry                            N6,916,751,203.00
ii.   Parastatals                               N5,234,644,736.00                      

Total                                              N12,151,395,939.0


3.0    2023 BUDGET RELEASES/PERFORMANCE

 

As earlier said, the Capital Allocation to the Ministry was N383, 351,656,449.00 after the demerger of Federal Ministry of Works and Housing. The releases so far to the Ministry was in the sum of N184,165,147,332.29, which represents 48.01% of the Capital Allocation in the 2023 Appropriation. This leaves a balance of N199, 405,010,166.71 to be released by the Federal Ministry of Finance (FMF).

 

3.10.    Capital Projects


The sum of N184,165,147,332.29 released up to date to the Ministry from the 2023 Budget Appropriation had been utilized for payments of some certified Certificates for executed works on roads and bridges by Highway, projects of Engineering Services and Common Services Departments.  It is to be noted that as at the end of November 2023 the Ministry had a cumulative unpaid certificate in the sum of N1,507,873,365,516.02 (One Trillion, Five Hundred and Seven Billion, Eight Hundred and Seventy-three Million, Three Hundred and Sixty-five Thousand, Five Hundred and Sixteen Naira, Two Kobo) only for all inherited on-going highway and bridge projects. Apart from the pressure on the resources to pay, there is the inadequacy of annual budgetary provisions where in most cases N100m or N200m and even less was provided for projects estimated to cost above twenty- fifty billion Naira or even more. Awarding such projects even though appropriated is difficult on its own because the provision is inadequate to even pay 10% for mobilization whereas the Procurement Act prescribes 30% mobilization. The details of all the 2023 Budget Performance for Highways Capital Projects are provided in the document attached as Annexure I.

 

3.20    Overhead   

Out of the Total Approved Overhead of N535,362,344.40 the sum of N312,294,700.90 was released to the Ministry for overhead costs for the period January - July, 2023, which represents 58.33% of the budgetary provision with an outstanding sum of N 223,067,643.50.

 

3.30    Personnel Cost


The Personnel Cost of N12,598,351,319.00 for the Ministry is being implemented through the Integrated Payroll and Personnel Information System (IPPIS) programme in the Office of the Accountant-General of the Federation.

 

4.0    REVENUE GENERATED

The sum of N723,063,678.62 was generated as revenue from January to November, 2023 and all the revenue realized have been remitted to the consolidated Revenue Account (evidence of IGR remittance enclosed).

 

5.0    2024 BUDGET PROPOSAL
The total sum of N 657,228,251,596 was proposed for the Federal Ministry of Works and its Parastatals for Capital, Personnel and Overhead estimates in the 2024 Appropriation Bill. The breakdown of the proposals is as follows:

 

5.10    Capital Budget Proposal            
a). Main Ministry of Works                                       N 566,466,977,361
b). Parastatals    
i. Federal Road Maintenance Agency(FERMA).         N 51, 282,456,911               
ii. African Regional Institute for Geo-Spacial Information Science and Technology AFRIGIST (RECTAS) N 104,039,920
  Grand Total                                                           N 617,853,474,192

 

5.20 Overhead Budget Proposal                
a). Main Ministry of Works                           N 668,116,856.00
b). Parastatals:
i. FERMA                                                   N 22,027,209,696.
ii. RECTAS/AFRIGIST                                 NIL                          
          Grand Total                                      N 22,695,326,552

 

5.30 Personnel Cost Proposal            
i. Main Ministry of Works                          N 12,598,351,319
ii. Parastatals                                          N 4,081,099,533
             Grand Total                                N 16,679,450,852

 

Please note that without any presidential pronouncement, the following Parastatals which have been under the Ministry of Works have been provided for in the Budget Proposal for the Ministry of Housing and Urban Development as follows:
i.    Office of the Surveyor-General of the Federation (OSGoF);
ii.    Federal School of Surveying, Oyo (FSS);
iii.    Council for the Regulation of Engineering in Nigeria (COREN); and
iv.    Surveyors’ Council of Nigeria (SURCON)
It will be good that these Committees do get these Parastatals back to the Federal Ministry of Works.    

 

6.0     CATEGORIZATION OF ONGOING HIGHWAY PROJECTS UP TO 2023

The Ministry undertook a total of 2,097of on-going/inherited projects at a total Contract Sum of N13,835,640,624,786. The total amount certified to date stood at N4,772,770,148,140.41, while the total amount paid was in the sum of N3,140,569,453,163,82 as at November, 2023. 3 details are shown in Annex I.

 

Some of the projects are categorized according to special funding mechanism as follows:


6.10    Highway Project Financed with Presidential Infrastructure Development FUND (PIDF).
A total of Four selected critical projects are being funded under the Presidential Infrastructure Development Fund (PIDF) Project which is managed by the Nigerian Sovereign Investment Authority (NSIA).  The projects are:
a.    Expansion and upgrading of Lagos-Ibadan Expressway Section I (Lagos-Shagamu);
b.    Expansion and upgrading of Lagos-Ibadan Expressway Section II (Shagamu-Ibadan);
c.     Reconstruction/Rehabilitation of Abuja-Kaduna-Kano Road; and
d.     Construction of 2nd Niger Bridge and two Bypasses at Asaba and Onitsha.

 

As at date, the total sum of N846, 365,489,635.12 has been certified out of the initial projects cost N1,535,375,595,518.43. This translates to a performance of 55.12%. The Lagos-Ibadan Expressway has been substantially completed to about 90% but we still lack fund to complete the project. The Abuja-Kaduna-Kano Road is in three sections with about 127km uncompleted in section I (Abuja-Kaduna). Section II which is Kaduna-Zaria is fully completed and section III which is Zaria-Kano is on-going with 20km left uncompleted. The total cost of the three sections is about N655billion. The contractor is seeking for a review of contract to about N1.37trillion to complete the project. We are reviewing the request. However, even though the project will not get up to N1trillion when fairly reviewed, we believe that the unit rates ought to be reviewed. For example, the subsisting unit rate of Asphalt on the project is about N11,000 per square meter, whereas the real cost now is not less than N20,000 per square meter. We have requested the contractor to execute the first 40km of section I on concrete. It is important to note that we do not have fund to continue the project by February 2024 if no funding is injected into the project.

 

The 2nd Niger Bridge has been completed and was recently handed over to the Ministry. Additionally, there remains the construction of the Approach roads 2A and 2B which were awarded by FEC but have funding challenges to take-off.  The remaining two Bypasses in Asaba (2A) and Onitsha (2B) awarded to Julius Berger Nigeria Plc and Reynods Construction Company Nigeria Limited respectively, during the last Administration was initially estimated at about N200billion but now with inflation, the cost may be up to N260billion. There is no funding for these projects and the projects have not taken off. Let me note that without these Bypasses, the completed 2nd Niger Bridge will be almost inoperative. The details of these projects are as shown in Annexure II.

 

6.20    Highway Projects Financed with the Sovereign SUKUK Fund
The Federal Government through the Debt Management Office (DMO) initiated Sukuk Funding Programme for financing road infrastructure in 2017. The total sum of N683.122bn was raised to fund 25, 28, 44, 71 and 63 number projects in years 2017, 2018, 2020, 2021 and 2022 respectively. All the works milestones for the Sukuk in year 2017, 2018, 2020 and 2021 were completely drawn down while the 2022 Sukuk, issued in the sum of N110,000,000,000.00 is on-going. A total of 63 selected critical projects are being funded under the 2022 Sovereign Sukuk Issuance. As at end of November 2023, the total sum of N50,537,288,079.45 was drawn down translating to a performance of 46%. The details of execution of the projects and drawdown of the 2022 Sukuk Bond is as shown on Annex III;

 

6.30    The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase I
The NNPC joined the Road Infrastructure Development & Refurbishment Tax Credit Scheme programme by undertaking to finance 21 roads in the sum of N621bn with total length of roads of about 1,804.6km under the NNPC Phase I. These roads were identified by key stakeholders such as the NNPC, Petroleum Tanker Drivers Association (PTD) and the Ministry etc. as being crucial for the efficient distribution of petroleum products across the nation. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N247,729,252,899.54 out of the Federal Executive Council (FEC) approved sum of N621,237,164,794.59 representing 39.88% performance. The funding gap here due to inflation is estimated at over 250bn. The details of NNPC Phase I Funded Projects are attached as Annex IVA;

 

6.40    The Nigerian National Petroleum Company Limited (NNPC) Funded Projects Phase II
The NNPC Phase II Funded Projects were approved by the Federal Executive Council in the sum of N1,969,700,168,910.78 for the execution of 44 No. roads with total length of 4,554.19km while the initial Contract Sum was about N3.969trillion. This leaves a funding gap of over N2trillion at the time of starting the projects. Presently, with inflation, the funding gap to have the NNPC Phases I & II completed shall stand at about N3.56trillion (Inflation about N1.5trillion) for two years from now. This funding gap is neither appropriated for nor has any source of funding. This means that without the kind intervention of this Distinguished and Honourable Joint Committees of Works, these projects will not go on mostly from March 2024 when the NNPC funding would have been exhausted. Your kind intervention and advice are highly, highly and urgently solicited. As at date, the total drawdown forwarded to the NNPC Limited is in the sum of N752,093,618,603.51 representing 38.18% performance. The level of drawdown seems low because most of the projects needed to be reviewed due to the inflation, The details of NNPC Phase II Funded Projects are attached as Annex IVB.

 

6.50 Other projects funded under Road Infrastructure   Development & Refurbishment Tax Credit Scheme.
Several Companies have leveraged on the Executive Order No.7 of 2019 to commit investments in the construction/rehabilitation of roads and obtain Tax credit. Companies like NLNG Limited, Dangote Industries Limited, BUA International Limited, MTN Nigeria Communications Plc, Mainstream Energy Solutions Limited and GZI Industries projects have embraced the Road Infrastructure Development & Refurbishment Tax Credit Scheme program. Twenty-one projects at a total cost of N1.338trillion outside of those being funded by the NNPCL are being executed under this Scheme. The details are attached as Annex IVC; and
a)    Projects funded from Multi – Lateral Loans.
4Nos. major highway and bridge projects are being funded through Multilateral Loans and grants from the African Development Bank (AfDB) and the China Exim Bank. The details of these projects are attached as Annex V.

 

7.0   2023 APPROPRIATION OF ALL ONGOING EMERGENCY/SPECIAL REPAIRS AND LIMITED REHABILITATION PROJECTS

These are projects being executed under emergency repairs works along the Federal Highway network. The projects under this category have a total contract cost of N419,841,989,869.00, with a total amount certified in the sum of N307,486,496,856.58, while the total amount paid is in the sum of N 123,213,264,774.77, the Ministry is indebted to Contractors to the tune of N 184,273,232,081.81. The details of these projects are included in Annex I.

 

8.0    INTERVENTION ON TERTIARY INSTITUTIONS PROJECTS  
These are projects being executed under the intervention in Federal Government Tertiary Institutions. Out of 108 projects under this category at a total contract cost of N15,641,954,804.16, 61 projects have been completed and handed over at a total cost of N10,790,866,435.35 as at end of November 2023. Twenty-one projects at a total cost of N3,874,482,841.53 have been completed awaiting handover, while the remaining 26 at a total cost of N3,491,998,752.77 are on-going. The details of these projects are attached as Annex VII.

 

9.0    OVERGROWN VEGETATION CONTROL PROJECTS  
These are projects being executed under the intervention on Federal Government Tertiary Institutions. The projects under this category have a total contract cost of N2,333,448,750.00, with a total amount certified in the sum of N1,795,927,968.71, while the total amount paid is in the sum of N62,060,468.75, the Ministry is indebted to Contractors to the tune of N1,733,867,499.96. The details of these projects are included in Annex I.

 

10.0 PROJECTS PRIORITIZED FOR COMPLETION 2022-2024
In spite of all odds, 21 major road and bridge projects have been completed and some were commissioned, while others are ready for commissioning. The total cost of the completed major road and bridge projects is in the sum of N498,802,362,642.46 with a total length of    489. 97km.  Also, to be completed in 2024 is the 260 Emergency Repair works in the 2023 Supplementary Appropriation at a total cost of about N260bn. The detail of completed projects is attached as Annex VI.

 

11.0 BRIDGE CONSTRUCTION/ REHABILITION PROJECTS
Under the 2023 budget, the Ministry undertook massive rehabilitation of bridge projects, some of which have never been maintained since they were constructed over 50 years ago. Human activities on these bridges (i.e. vandalization, fire incidents) have left these bridges in deplorable state and unserviceable conditions. The Ministry is trying to sustain these critical works in the 2024 budget as well as undertake the construction of new bridges where there was none in order to reduce travel time as well as the reconstruction of bridges to replace collapsed ones.

 

These projects are:
a).    Comprehensive Repairs of the damaged elements of the Third Mainland bridge superstructure: This was procured this year and works are currently ongoing and is satisfactory so far. The second Phase which involves the substructure repairs is being processed for award.
b).    Comprehensive emergency repairs of Eko and Marine bridges in Lagos State: Works are ongoing on these bridges. The Contractor has attained appreciable progress and is being supported financially to enable expeditious completion due to the emergency nature of the works.
c).    Proposed Rehabilitation of Carter, Iddo, Liverpool and Iganmu bridges in Lagos State: The present condition of the above bridges calls for urgent rehabilitation works to restore the bridge integrity and forestall further deterioration that may be detrimental to road users. In this regard, the procurement process is already ongoing within the Ministry for the emergency award of contract for the repairs/rehabilitation of these bridges.
d).    The Rehabilitation of Jimeta bridge in Adamawa State and Murtala Mohammed bridge at Koton Karfe along Lokoja – Abuja Road; Works on these bridges are ongoing and will soon be completed.
e).    Proposed construction of Shendam bridge in Plateau State, Reconstruction of failed bridges in Enugu State and the Construction of Buruku bridge in Benue State; and
f). Reconstruction of three failed Bridges on East/West Road

 

These are new bridges that are required to ameliorate the sufferings of the host communities as well as other commuters. Procurement of contract for the construction of these bridges are already at an advanced stage and will soon be completed. Funds will be needed to bring them into reality.

 

12.0    NEW PROJECTS IN 2024 BUDGET  
There are new projects captured under the 2024 Budget at a total cost of N102,956,624,538.00. See Annexure 13

 

13.0    PROSPECTS AND PROSPECTS OF THE 2024 BUDGET FOR HIGHWAY PROJECTS

The policy thrust regarding the 2024 budget for highway projects is to ensure completion of some critical on-going projects which have attained significant levels of completion while keeping the rest alive through minimal appropriation. 693 new projects have been proposed in the 2024 budget, which are critical to improving road network connectivity and thus enhancing traffic circulation on the Federal Road network, necessary for boosting socio-economic activities in the country. The primary objective is enabling the Ministry achieve its mandate in providing a quality Federal Road network that serves as an environment to aid socio-economic growth of the country.

 

The main challenge to highways development in the Country remains inadequate funding. As at date, Government is committed to highway contractors to the tune of about N13.835 trillion with a total of about N1,507,873,365,516.02 unpaid certificates for executed works. Secondly, the dearth of younger Engineers/Technical Officers in the Ministry as a result of embargo on employment is affecting effective project supervision at the sites. It is expected that more sources of funding of highway projects be explored as well as lifting the embargo on employment of needed Engineers/Technical officers at middle level to enhance supervision of projects. Our Ministry has set up six committees to review all debts, approved and unapproved variations on prices of basic rates, and all augmentations that occurred before May 29th 2023 and from May 30th 2023 till date.

 

14.0    RECOMMENDATIONS
14.10 From the fore-going, I would like to recommend as follows:
a)    The provision of an Emergency Fund of about 30% of the Budget Provision to cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons;
b)    An increase of the Ministry’s present budgetary allocation to about N1.5tr to complete at least 10 selected critical roads and bridges in each of the six geo-political zones of the country;
c)    Urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
d)    Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the projects unit rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while unit rates regime will take effect on contractors in line with the current realities of the construction industry.
e)    More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges;
f)    Raising of Bonds from the Capital Market to finance road development in the country;
g)    Creation of an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) can be effective; and
h)    That appropriations for projects be such that no projects when started should last for more than four years.

 

14.20     ISSUE OF ASPHALT (FLEXIBLE) VERSUS CONCRETE (RIGID) PAVEMENT
It would be my great pleasure to clarify the misunderstanding of the Ministry’s new policy direction regarding the use of Rigid pavement on her projects. I have to state categorically that no Contractor is prevented from executing the scope works originally signed with the client once certain conditions are observed, which are provision of a 15year shelf-life Insurance Guarantee for the works and a maximum of 5% of Variation of Price (VoP) in the Contract. The Ministry’s new policy is to prevent excessive augmentation of contracts considering the scarcity of Forex and weakening of the Naira against the Dollar which makes the cost of bitumen (which is fully imported) increase in geometric progression against the arithmetic progression rise in cement prices in concrete road pavements. In these times of rising inflation and scarce resources, the Country needs to look inwards to conserve foreign exchange.

 

15.0 COMMENDATIONS
We thank the President and Commander-in-Chief of the Federal Republic of Nigeria, His Excellency, Senator Asiwaju Bola Ahmed Tinubu, GCFR for the intervention of his Renewed Hope administration in the Works sub-sector and approval of an enhanced budget envelop for the Federal Ministry of Works. We also thank the leadership of National Assembly, the Chairmen and members of the Works Committees and indeed members of the National Assembly for their painstakingness in ensuring the speedy passage of the 2024 Appropriation Bill.


Nweze David Umahi
Federal Ministry of Works
December, 2023

Celebrating A Leader Of Distinction @ 61...
Dec
09
2023

Celebrating a Leader of Distinction @ 61

 

1. I feel profoundly delighted to felicitate with the Senate President of the Federal Republic of Nigeria, His Excellency, Senator Godswill Akpabio, CON on this auspicious moment of his 61st birthday anniversary, this 9th December 2023.

 

2. Your Excellency, I thank God for His faithfulness upon you and for the accomplishments of your golden age. You are truly an outstanding personality with exemplary excellence in all endeavors of life. As a Governor, you radiated excellence, and as a Minister, you were wonderful. I have no doubt that you will write your name in gold as Senate President of the 10th Senate. May God continue to inspire you with His boundless energy and endless passion as you strive to uphold the legislative integrity and a sense of personal dedication to humanity. May God prosper your new age and grant you greater heights as you advance the cause of humanity.

 

3. While wishing you eventful birthday celebration, please accept always the  assurances of the esteemed regards and best wishes of my family, the management and staff of the Federal Ministry of Works. Once again, congratulations, Your Excellency.

 

H.E. Sen. Engr. Nweze David Umahi, CON, FNSE, FNATE
Honourable Minister

Federal Government Committed To The Completion Of Bodo-Bonny Road Project In Rivers S...
Dec
06
2023

Federal Government Committed to the Completion of Bodo-Bonny Road Project in Rivers State, Directs Julius Berger Nigeria Plc to go Back to Site

 

The Hon. Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has assured the host communities to the Bodo-Bonny Road & Bridge project in Rivers State that Federal Government under the Renewed Hope administration of President Asiwaju Bola Ahmed Tinubu, GCFR would ensure the completion of the Bodo-Bonny Road and bridge project on record time.

 

The Honourable Minister gave this assurance during the courtesy visit of a delegation of Bodo–Bonny Road Peace Committee to his office at Federal Ministry of Works, Abuja on 5th December 2023. The Honourable Minister who described the project as a catalyst for economic revolution in the area stated that the project was awarded to Julius Berger Nigeria Plc by the previous administration and only about 84% of the project has been completed.

 

He noted that there was a partnership agreement in 2017 between Federal Government via Federal Ministry of Works and NLNG on modalities for the funding of the project. He wondered why the contractor; Julius Berger Nigeria PLC was no longer on site despite their commitment under their agreement to deliver within the revised date of completion.

 

He faulted the stand of Julius Berger PLC on variation of the project even when the company had signed a commitment to complete the project without asking for further variation. He maintained that "no equipment must be allowed to be moved out of site, they must complete that project as agreed and as signed and nothing has removed that responsibility which they willingly on their own signed. "I implore you the peace committee to report to me the progress that has been made on that road.”

 

“Bobo-Bonny project was augmented to 199billion, I am told by the Ministry and NLNG Limited (NLNG) that there was a document signed by Julius Berger that the project cannot be varied which means that the project cost cannot be increased, the project is about 35 kilometers.”

 

The Honourable Minister thanked the host communities for maintaining peace between them and the contractor handling the project despite the delays in handling the project and charged them to continue with their peaceful disposition to contractors handling projects in their area, noting that the Ministry would make sure that the Bobo-Bonny Road project would be completed by April 2024. “Nobody will hold this country to ransom, if they cannot do it, another person will come and do it and finish it even better but the only charge I give to you is not to allow any equipment out of sight until they complete the project."

 

The Minister equally said the Federal Government will equally handle a coastal road in the area of even greater site challenges, and the cost would not be up to what Government is paying Julius Berger. “I respect them for their quality and commitment, but we shouldn't be taken for granted” “it is a character of arrogance for them to demobilize from site.”

 

Earlier in his remarks, the Federal Director Bridges and Design Engr. O. O. Awosanya gave a brief history of the award and funding of the project by Julius Berger. He said the initial date of completion was supposed to be 31st December 2023 and that the road consisted of 13 bridges “We have three main bridges and we have nine mini bridges and one bridge over the pipeline. The project completion as of today is about 84% and the contractor has requested for a review which is against the spirit of the propagated agreement that was signed between the Federal Government, the Nigerian Liquefied Natural Gas and JB in 2021.”

 

Delivering the mission statement of the delegation of the Bodo-Bonny Road Peace Committee, the Acting Chairman and leader of the delegation, Chief Dr. Charles John Jumbo thanked the President of Nigeria, His Excellency, Sen. Asiwaju Bola Ahmed Tinubu, GCFR for the massive intervention he is bringing to the road sub-sector and appreciated the efforts of the Ministry of Works in changing the narrative of the road infrastructure in Nigeria “We also take this opportunity to express our heartfelt gratitude to our dear President, His Excellency Ahmed Bola Tinubu, President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria for appointing a distinguished Engineer and administrator of your caliber to oversee the crucial Federal Ministry of Works. Your appointment has indeed sparked hope within us for the successful execution of various infrastructure projects within Nigeria, especially the Bodo-Bonny Road and Bridges Project.”

 

He said the delegation was in the Minister’s office to register their displeasure over the sudden demobilization from site and abandonment of the Bodo-Bonny Road and Bridge project by Julius Berger Plc despite the huge funds committed by the Federal Government through NLNG and implored the timeous intervention of Federal Government to avert the imminent hardship to be faced by the people of the area. “We observed the seeming demobilization of the contractors, Messrs. Julius Berger Nigeria Plc from the project site at about 80 per cent completion, leaving us deeply troubled as the Peace Committee and representatives of the communities directly imparted by the vital road network, we are apprehensive that the project’s discontinuation might result in yet another addition to catalogue of abandoned initiatives" He continued, "We  earnestly implore your immediate attention and intervention in addressing the current state of the Bodo –Bonny Road Project. Our communities remain committed to fostering peace and progress and the successful completion of this project.

Dangiwa Charges Mortgage Bankers On Innovation, Says Nigeria's Housing Crisis Require...
Dec
02
2023

Dangiwa Charges Mortgage Bankers on Innovation, Says Nigeria's Housing Crisis Requires Creative Solutions

 

…Sues for affordable mortgage products to match current economic realities

 

Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has called on heads of mortgage banks to be creative in developing mortgage products for Nigerians. The Minister said Nigeria's current economic challenges call for innovative solutions that will make housing finance more easily accessible to Nigerians, and at affordable rates.

 

Speaking during the 20th edition of the Mortgage Banking CEOs Annual Retreat at the Transcorp Hilton Hotel in Abuja on Saturday 2nd December 2023, Arc. Dangiwa said CEOs of mortgage banks must find new ways to navigate the harsh macroeconomic environment and ensure that ordinary Nigerians- especially those in the low-and-medium-income bracket- can access the finance they need for homeownership.

 

"While the government works to fix this macro-economic challenge, I still believe that as CEOs of mortgage banks, you can find creative ways to develop innovative mortgage products that are responsive to Nigeria's current economic situation. This includes adopting rent to own mortgage options, flexible monthly mortgage loan repayments to make commercial loans more affordable.

 

"I note with concern that the Capital Market has not been maximally tapped to raise long term funds to refinance mortgage loans and to explore more creative ways to make mortgages more affordable even as we work to fix the larger macro-economic problems. As leaders, we must not only see provision of housing and home loans from a business and profit perspective, but also see expanding access to affordable mortgages as a moral imperative. So, we must do all we can even in these difficult times to ensure that not only the elites, but Nigerians within the low- and medium-income segments have access to affordable mortgages," he said.

 

While he acknowledged the presence of legacy challenges and barriers that hamper development in the sector, he charged the mortgage bankers to see themselves as leaders with a moral imperative to make housing more affordable and easily accessible to Nigerians.

 

The Minister noted that the theme for this year's retreat, "Advancing Sustainable and Affordable Housing in Nigeria: Navigating Macro-Economic, Legislative, and Policy Frontiers”, clearly captures the need of the hour. "The theme emphasizes the need for all players to find ways to navigate the macro, legal and policy bottlenecks. This speaks to the need for innovation. It speaks to the need for creativity. And it speaks to the need for effective leadership at every point in the value chain. This is because leaders are supposed to make progress despite challenges. Leaders are supposed to navigate the complexities of situations to make progress," he added.

 

Aware of the cost of funding and its impact on lending rate, which is a reflection of the broader economic reality, the Minister expressed confidence at the ability and willingness of President Bola Ahmed Tinubu to drive economic growth and create a more friendly environment for mortgage banking to thrive in Nigeria. He assured them that the jinx of macro-economic, legislative and policy issues that have held down the growth of effective housing delivery in the country will be broken under the leadership of President Bola Tinubu.

 

Speaking earlier, President of the Mortgage Banking Association of Nigeria (MBAN), Ebilate Mac-Yoroki noted that the retreat provided a platform for deliberation in order to harness policies and partnerships to create products that would enhance the extension of access to affordable housing finance to a larger segment of the Nigerian populace.

 

Also speaking at the event were Managing Director and Chief Executive of Nigeria Mortgage Refinance Company (NMRC), Kehinde Ogundimu, who observed that despite efforts by mortgage bankers in the past years, the industry has performed below expectation. "We must find ways to make affordable housing delivery work, starting with lowering the cost of lending. There's no where in the world that mortgage thrives with double-digit interest rates," he said.

 

Other attendees include Managing Director and Chief Executive of the Federal Mortgage Bank of Nigeria, Madu Hamman, the leadership of Family Homes Fund Limited, the leadership of the Real Estate Developers Association of Nigeria (REDAN), heads of mortgage banks and institutions, and representayives of regulatory bodies.

Hon. Ministers Of Works, Defence, And Chief Of Army Staff Meet On Areas Of Collaborat...
Jan
19
2024

Hon. Ministers of Works, Defence, and Chief of Army Staff Meet on Areas of Collaboration to Improve Internal Security, Focus on Road Infrastructure as an Important Predictor
...Activities of Contractors to Focus in This Direction


As part of the strategic and holistic security roadmap of the Federal Government under His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR, the Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi, CON had a closed door meeting with his counterpart, the Hon. Minister of Defence, His Excellency, Mohammed Badaru Abubarkar,CON, and the Chief of Army Staff

(COAS) Lieutenant General Taoreed Lagbaja in his office at the Federal Ministry of Works, this 19th January 2024, and the focus was on strengthening collaborations towards improving the nation’s internal security through revolutionalizing road infrastructure development.

The Hon. Minister of Works praised the interactive meeting as a Renewed Hope initiative that would add value  to the  implementation  of the security roadmap of  the present  administration. He commended  the President  of the Federal Republic of Nigeria  for appointing men of proven professional capacities and passion for service delivery to tackle the security challenges  facing our country, and expressed  hope that with the interventions  of Mr. President  towards rejiging the nation's  road infrastructure, military operations across  the nation  would  assume  greater  imptetus.

" I commend Mr. President very highly, and I thank  members of the public who  have also supported in different dimensions. Yes, we have discussed certain infrastructure as it concerns my ministry to enhance their performances, and our minds are working together. The main focus of Mr. President, when it comes to road infrastructure, is the interstate routes that are linked to security operations nationwide,  the palliative jobs, and the  roads that are linked to markets, industries, and factories etc. And so, this is one of the mandates that Mr. President has given to us. And so, we are going to hasten this mandate and to ensure that the desire of Mr. President, as far as road infrastructure is concerned, is achieved"

 "Road is everything. If you improve the roads, you have improved security, agriculture, education, and commerce, and you have improved the happiness of people.  And this is just what  Mr. President is doing. We have started to be in the field to repair over 320 roads that Mr. President directed us to do."

Speaking  on behalf of the visiting  team, the Chief of Army Staff said that the essence  of the meeting  was to discuss with the Hon. Minister  of Works elements of national  power  support  to the military field operations  with a focus  on the role of infrastructural  upgrade in the enhancement  of military operations  across  the country.

"We have discussed extensively, and we are glad that the Hon. Minister of Works is disposed to some of the suggestions that we have made on the need to focus on some critical roads that will impact positively on military operations across the country. And so, the Minister of Works has made some promises, and we look forward to seeing activities of contractors and other agents focus in this direction in the field, and the military will support them going forward. Overall, improved security is our objective, and we will continue to pursue that."

FG Inaugurates Housing Reforms Task Teams, Urges Commitment To Renewed Hope Agenda Fo...
Jan
16
2024

FG Inaugurates Housing Reforms Task Teams, Urges Commitment to Renewed Hope Agenda for Housing and Urban Development

The Federal Government of Nigeria, through the Ministry of Housing and Urban Development, has Tuesday 16th January 2023 inaugurated four (4) Reform Task Teams to ensure the successful implementation of the Renewed Hope Agenda for Housing and Urban Development.

The Task Teams are the Housing Institutions Reform Task Team, Multi-Agency Project Delivery Task Team, Land Reforms Task Team, and the Building Materials Manufacturing Hubs Task Team. In his remarks, Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa noted that the Task Teams represent an important step towards delivering on the mandate of the Ministry in line with the Renewed Hope Agenda of the President.

He decried the failure of successive governments to implement plans and recommendations put forward by committees in the past, noting that the difference with the present inauguration is the political will of His Excellency, President Bola Ahmed Tinubu, GCFR, his commitment as Minister, and the reputation of the chairmen and members of the Task Teams.

"What unites us is the desire for Nigeria to have a vibrant, functional, and efficient housing industry that not only meets the shelter needs of Nigerians but also to unlock the massive potential of the sector for catalyzing inclusive economic growth. Over the 60 years of Nigeria’s independence, we have witnessed successive governments roll out a series of housing development plans and policies. Despite these many plans, our country has sadly failed to meet the housing needs of Nigerians as we still grapple with a huge housing deficit. 

"Housing sector contribution to the Gross Domestic Product (GDP) hasn’t moved in any significant way over the past several decades, housing development institutions are still only functioning at sub-optimal capacities, and the enabling housing laws are obsolete", he said.

Arc. Dangiwa noted that the President has demonstrated that housing is a part of his priorities towards actualizing his vision of creating a $1 Trillion economy by demerging the Ministry from the Ministry of Works and appointing built professionals to lead it, adding that the Task Teams are a major foundational step necessary to implementing the historic reforms for actualizing the Presidential vision.

"The Task Teams have been carefully constituted to include all relevant stakeholders, such as agencies of government, professional and regulatory bodies, the academia, industry experts, traditional rulers, and other groups. The goal is to tap from the wealth of knowledge and experience of these relevant sectors and individuals and come up with strategies that are inclusive, wholesome, and can stand the test of time.

While he acknowledged the skepticism that often accompanies such Teams due to past failures and public mistrust, he assured that the chairmen and members of the Teams are individuals of character who have exhibited professionalism, result-oriented leadership, and distinguished service in their various fields. "I am confident that they will deliver, and the deliverables will form the foundation for a strong and vibrant housing and urban development sector", he said.

The Housing Institutions Reform Task Team is expected to develop a robust framework for ensuring that housing agencies under the supervision of the Ministry are optimized to deliver effectively on the Renewed Hope Vision for the provision of quality, decent, and affordable homes to Nigerians. This includes a thorough review and facilitation of necessary legislative amendments of relevant housing industry laws including the National Housing Fund (NHF) Act,1992, Federal Mortgage Bank of Nigeria (FMBN) Establishment Act, 1993, Federal Housing Authority (FHA) Act,1973, and PenCom Act to allow for increased investment in housing. 

The Team will also map out strategies for driving the nationwide adoption and passage of the model mortgage foreclosure law in States.

On their part, members of the Multi-Agency Project Delivery Task Team are saddled with the responsibility to ensure that all housing agencies under the supervision of the Ministry of Housing and Urban Development work collaboratively towards optimizing their strengths to deliver decent and affordable housing to Nigerians, by removing the bottlenecks that hinder effective collaboration between the Ministry and housing agencies. 

The Minister said part of its Terms of Reference includes developing a comprehensive strategy and roadmap for the construction of 50,000 new houses per year. 

The Land Reforms Task Team, on the other hand, is tasked with developing a blueprint that will aid the sustainable implementation of much-needed reforms necessary for streamlining land administration and ensuring easy, cost-effective, and efficient access to land in Nigeria, drawing from the extensive work of the Presidential Technical Committee on Land Reforms (PTCLR) which has been working for the past 14 years towards comprehensive reforms including the establishment of a National Land Commission.

The fourth is the Building Materials Manufacturing Hubs Task Team which is expected to conduct a thorough assessment of the current state of the building materials manufacturing sector in Nigeria, including existing facilities, capacities, and key players, as well as identify challenges and opportunities within the sector. 

The result will be a blueprint that will ensure sustainable implementation of reforms for the sector and the establishment of building materials manufacturing hubs in each of the six (6) geo-political zones across the country.

Delivering the vote of thanks, the Minister of State, Abdullahi Tijjani Gwarzo urged the Task Teams to take the job as a call to national service to ensure that Nigerians benefit from the initiatives.

The leaders of the Teams were handed the Terms of Reference for each team and urged to work within the stipulated timelines for the speedy actualization of the deliverables.

New Permanent Secretary Works Yakubu Kofarmata Assures Of Innovation To Achieving Ren...
Jan
13
2024

New Permanent Secretary Works Yakubu Kofarmata Assures of Innovation to Achieving Renewed Hope Agenda

The newly deployed Permanent Secretary to the Ministry of Works has given assurance that subsequent new innovations in the Ministry shall be geared towards achieving Mr. President's Renewed Hope Agenda in infrastructural development, especially in road construction and rehabilitation for ease of doing business in all sector of the Nigerian Economy. He made this remark after signing and receiving the hand over notes in the Ministry. The new Permanent Secretary for the Ministry of Works Mr. Yakubu Kofarmata, was extremely glad to be back to the Ministry, haven served preiviously in the Ministry as an Asst. Director.

He was Particularly delighted seeing a good number of female leaders and architects still present, adding that it was an indication that the Ministry of works is a place that can bring the needed change in the country.

Mr YAKUBU KOFARMATA said in his words “I come here as a brother, friend and colleague and so we have to work together to help the President as well as the Honorable Minister to achieve all that they have spelt out in their agenda”.

Kofarmata further expressed optimism that his leadership would be a new beginning that would bring about innovation for the Ministry and the Country at large.

Ogunbiyi Assumes Office As Perm Sec Housing Ministry, Vows To Uphold Service Ethics I...
Jan
13
2024

Ogunbiyi Assumes Office as Perm Sec Housing Ministry, Vows to Uphold Service Ethics in the Ministry

The newly assigned Permanent Secretary to the Federal Ministry of Housing and Urban Development Dr. Marcus Olaniyi Ogunbiyi, has assumed office at the Ministry's Headquarters in Abuja, Friday, January12th, 2024.

Dr Ogunbiyi was deployed to Housing Ministry from the office of the Head of Service of the Federation (OHCSF), where he held fort as the Permanent Secretary, Career Management Office (CMO)

At the occassion, Dr. Ogunbiyi expressed his commitment and readiness to work with the staff of the Ministry, and solicited for their support and cooperation, while also promising to foster peace in order to collectively achieve the desired mandate of the Ministry.

The Permanent Secretary, who is a champion of the Performance Management System, a pillar of the Federal Civil Service Strategy and Implementation Plan (FCSSIP 25), pledged to continue in his quest to promote a seamless implementation of the Plan in the Ministry.

"As great disciples of the Head of Service, we must all do everything possible to uphold the implementation of FCSSIP 25 in our Ministry, because it has come to stay in the Federal Ministry of Housing and Urban Development”, he stressed.

Dr Ogunbiyi took over from the outgoing Permanent Secretary, Works and Housing, Mamuda Mamman, who supervises both the Works and Housing ministries since the demerger of the two ministries in August, 2023. Mamman was deployed to the Federal Ministry of Power. 

In his remarks, on behalf of the staff of the Housing ministry, Director and Head of department, Engineering Services, Engr. Cyril Onyeneke welcomed the new Permanent Secretary and expressed enthusiasm to cooperate as well as follow his directions in order to achieve the goals of the Ministry.

Highlight of the occasion was the formal signing and presentation of the handover notes between the outgoing and incoming Permanent Secretaries.

In attendance at the event were the management and staff of the Ministry

Honourable Minister Of Works Inaugurates Committees To Fast- Track The Implementation...
Jan
09
2024

Honourable Minister of Works Inaugurates Committees to Fast- Track the Implementation of HDMI Programme, Tasks Concessionaires on Best Standard on Road Construction.

 

In keeping with the avowed commitment of the President of Nigeria, His Excellency Sen. Asiwaju Bola Ahmed Tinubu GCFR towards road infrastructure revolution, the Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi, CON, has inaugurated three committees to fast-track the implementation of the Highway Development and Management Initiative (HDMI). The programme which is a Public Private Partnership (PPP) arrangement in the construction, operations and maintenance of highways, is designed in such a way and manner that the emergent concessionaires will recoup their investments through toll and non- toll revenues as may be negotiated.

 

Speaking during the event, the Honourable Minister of Works harped on the need for the committees to work effectively and concertedly bearing in mind the expectations of Nigerians, in terms of transparency, standard and efficiency in contract negotiations. He noted that contract with some concessionaires had been consummated but said that the current economic dynamics and the new policy direction of the present administration would require a review of the scope of work and cost implication. He charged the concessionaires to abide by the criteria set and the timeline for the projects.

 

"We own the design; you will own the cost of the project while we carry out verification on the cost of the projects; the idea is to scope the projects. We want to have a standard road infrastructure to toll. Our business is to ensure that your design conforms with the Ministry's standard of design, that is why we are making the Director of Roads and Bridges of the Ministry to be the Chairman of the committee on Scoping and Design. We don’t want to do just a patch on the road and give it to the public for you to toll. The public will resist. We want to have a standard road to toll".

 

He said “we have to provide alternative road because by law you cannot toll road if there is no alternative route to it. It is very important that every of the projects must have alternative routes.  The number of toll gates and toll stations will be determined by Infrastructure Concession Regulatory Commission (ICRC). We also have to put CCTV Camera, Solar Light and Security on our roads. Whatever that will make our roads safer is very important to us. All these must be considered part of the business."

 

The three committees set up by the Hon. Minister for the actualization of the Federal Government’s HDMI programme are: Scoping and Design, Financial Due Diligence and Agreement Review.

 

While constituting the Due Diligence Committee, the Hon. Minister said “We must have a figure to begin to work with under Due Diligence committee, we want to hand over all these sites to people who are serious by the end of March 2024.  Enough of these meetings, enough of the bureaucracy “.

 

Sen. Umahi said of the Agreement committee, " I have given a template on how to review agreement and I think the legal department can do this on their own “.

 

He told the concessionaires of the consequence of not meeting up with the rules of engagement. “I must say that in case timelines were set and any company couldn't meet up with the timelines, we may not continue processing anything with that company."

 

Sen. Umahi further stated, “in all our biddings in 2024 going forward, every cost element must be disaggregated. The procurement law has set up profit for the contractors.  We will verify the cost in respect of concessionaires. We have to ensure that the cost you are putting will do the job. We don’t want you to engage and come back and say there is inflation after we engage you on the project. We have to ensure that concessionaires have all what it takes to do the job. The Ministry of Works and the concessionaires must ensure that we are on the same page so that the citizens will not suffer.  Patriotism demands that we must not allow the citizens to suffer. We have to be realistic and honest. We don’t have all the money as government to do these jobs.

 

The Hon. Minister however, expressed happiness for the progress made by 9 concessionaires in finalizing their designs and documentation to achieve  a financial  close  by the first  quarter  of 2024 and charged  them to diligently  work  with the Ministry's  committees for the final processes.

 

Earlier, speaking on behalf of the Permanent Secretary at the meeting, the Director Highways and Bridges, Engr. Awosanya Onatuga said the Directors and the concessionaires were ready to work concertedly to move HMDI project forward. He remarked, "the contract has been consummated but there are certain dynamics that will necessitate a review of the scope of work that will dovetail into the cost of each project, and the Hon. Minister is desirous to fast-track this process, so that the second phase can take off".

OUR PLAN ON ROAD INFRASTRUCTURE DEVELOPMENT IS HOLISTIC AND SUB- NATIONALLY ALL- INCL...
Jan
09
2024

OUR PLAN ON ROAD INFRASTRUCTURE DEVELOPMENT IS HOLISTIC AND SUB- NATIONALLY ALL- INCLUSIVE

This is the policy direction that drives the synergy between the Federal Ministry of Works and sub- national governments in tackling accumulated road infrastructure challenges across the nation.

The Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi CON is committed towards making all the States have a feel of the positive impact of the Renewed Hope administration of our dear President His Excellency, Sen. Asiwaju Bola Ahmed Tinubu GCFR on road infrastructure, which is a catalyst for the socio-economic development of progressive nations.

The picture here shows the Hon. Minister of Works, H.E Sen. Engr. Nweze David Umahi CON with the Governor of Kastina State, H.E Dr. Dikko Umar Radda, who paid a visit to the hon. minister in his office today, 9th January, 2024. 

Although it was a closed-door meeting, the visit was not unconnected with the zeal of the Governor of Kastina State to tap into the innovative road infrastructure agenda of Mr   President in the Works sub-sector.

Happiest Season's Greetings On This Christmas Day From H.E. Sen. Engr. Nweze David Um...
Dec
25
2023

Happiest Season's Greetings on this Christmas Day From H.E. Sen. Engr. Nweze David Umahi, Hon. Minister of Works

 

1. It is with the deepest  pleasure that I express the happiest  season's greetings  of my family, the management  and staff  of the Federal Ministry  of Works on this  momentous occasion  of the 2023 Christmas celebration, shared  by Christians all over the world. We thank  God Almighty  for the grace and privilege to celebrate  this year's Christmas season and for the hope of sharing in the prospects  of a new year.

 

2. As we all know, Christmas  is celebrated  by the Christian  faithfuls to commemorate the birth of our Lord Jesus Christ who came to redeem all mankind and also to share the significance of love, peace, and goodwill towards  all persons irrespective  of creeds, colours, or cultures. We are therefore  enjoined to use this  moment  and always to focus  our  thoughts and open our hearts towards  the promotion  of the best attitudes in  our public and private lives; let us emphasize  that which unites and strengthens our bonds and dreams  of achieving a prosperous nation  which God, through  the instrumentality of the Renewed Hope administration of the President  of Nigeria, His Excellency  Sen. Asiwaju Bola Ahmed Tinubu GCFR is anchoring  to the glory of His Holy Name. Mr. President’s administration is committed  to achieving a loving, prosperous, and united  nation. Road infrastructure is among  the critical sectors that are receiving  the priority  attention of Mr. President, and this  is hoped to assist  in fully  unlocking  the economic  potentials  of our dear nation and the well-being of all her inhabitants.

 

3. Let us, therefore, see this season as a moment  of reflection on the need for concerted efforts and renewed  vigor in our collective hope of building a nation  of boundless  possibilities. May God continue  to strengthen our confidence in the hope of  a better  future and grant us greater  years of Renewed  Hope accomplishments.  Merry Christmas, and please  accept the assurances  of the esteemed  regards  and best wishes  of my family, the management and staff  of the Federal Ministry of Works,  this season, and always.

 

H. E Sen. Engr. Nweze  David  Umahi, FNSE FNATE CON GGCEHF
Hon. Minister  of Works

Minister Of Works Sen Umahi Inaugurates Board Of Federal Roads Maintenance Agency (Fe...
Dec
21
2023

Minister of Works Sen Umahi Inaugurates Board of Federal Roads Maintenance Agency (Ferma) Charges Members to Brace Up to the Road Infrastructure Maintenance Challenges in Nigeria

 

The Honourable Minister of Works, His Excellency,  Sen. Engr. Nweze David Umahi CON has charged the newly inaugurated members of Governing Board of Federal Roads Maintenance Agency ( FERMA) to brace up to the challenges of road infrastructure maintenance facing the country and show unwavering commitment to the road  maintenance programmes of the Renewed Hope administration of the President of the Federal Republic of Nigeria, His Excellency, Sen. Asiwaju Bola Ahmed Tinubu GCFR The Hon. Minister gave this charge during the inauguration of the FERMA Governing Board at the Conference Room, Federal Ministry of Works, Headquarters. Mabushi, Abuja on 21st December 2023.

 

The Hon Minister thanked the President of Nigeria for appointing men of proven integrity and ability into the FERMA Board and for approving the 2023 Supplementary Budget which provides landmark interventions on the Federal roads. He said road infrastructure was critical to the socio-economic development of our nation noting that the critical sectors that drive economic growth rely greatly on road infrastructure development.

 

"Let me first congratulate the nominees of Mr. President to the FERMA board and to express my gratitude deeply to Mr. President who has found you worthy to do this job. We have a very critical situation with our roads all over the country. and for me, the number one thing Nigerians needed like yesterday is road. Road is everything. If we fix our roads today, we will bring down inflation in this country, because bad road is affecting every aspect of our economic activities. 

 

He maintained that the enhanced budgetary provision for road infrastructure under our dear President  shows  his commitment in changing  the narrative  of our road infrastructure. "This underscores the fact that Mr. President understands the plight of our people as far as our road infrastructure is concerned, he's doing everything within the budget and outside the budget to fix our roads. And I want to assure Nigerians on behalf of Mr. President that our hopes are renewed in tackling our road infrastructure decays.”

 

It would be recalled that by section 3 of the Federal Road Maintenance Agency, (FERMA) Amendment Act 2007, the President had on 13th October, 2023 approved the appointment of the following members of the Governing Board of FERMA and they had been confirmed by the Senate: 


Engr. Dr. Chukwuemeka Chijioke Agbasi - Managing Director


Engr. lbi Terna Manasseh - Member


Dr. Kenneth Ugbala - Member


Sen. Timothy Aduda - Member


Babatunde Daramola - Member


Hon. Preye Oseke Member


Aminu Adamu Papa - Member


Engr. Abubakar Bappa - Member


ACM Shehu Mohammed - Member

 

Yusuf Lawal Othman – Member

 

Earlier the Permanent Secretary, Federal Ministry of Works, Mahmuda  Mamman described the newly appointed members of FERMA board as people of proven competence and experience and expressed hope that they would perform in their new assignment.

 

In his acceptance speech on behalf of the newly constituted board, the Managing Director of FERMA Engr.  Dr.  Chukwuemeka Chijioke Agbasi thanked the President for finding them worthy to be appointed as board members of FERMA and pledged to discharge their responsibilities with the fear of God and align to the policy of the Federal Minister of Works and also to the mandate of FERMA.

 

He expressed the commitment of FERMA towards making a visible difference on the road condition and the travel experience of commuters in the country.

REMARKS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT AT THE MEETING WITH REG...
Dec
20
2023

REMARKS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT AT THE MEETING WITH REGISTRARS OF PROFESSIONAL REGULATORY BODIES IN THE CONSTRUCTION INDUSTRY ON WEDNESDAY, DECEMBER 20, 2023, IN ABUJA

 

1.    Protocols
2.    Honorable Chairmen/Presidents, esteemed Registrars, distinguished members of the Architect Registration Council of Nigeria (ARCON), Council of Registered Builders of Nigeria (CORBON), Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), Quantity Surveyors Registration Board of Nigeria (QSRBN), and Town Planners Registration Board of Nigeria (TOPREC), it is with immense pleasure and honor that I welcome you all to this auspicious occasion.
3.    Your presence here today symbolizes the unity and collective dedication towards the advancement of the built environment in Nigeria. The collaboration and synergy between the government and professional regulatory bodies plays an integral role in steering our nation's housing and urban development agenda forward.
4.    As stakeholders in the built environment sector, your respective organizations play a pivotal role in ensuring professionalism, adherence to standards, and the promotion of sustainable development practices. The Architect Registration Council of Nigeria (ARCON), Council of Registered Builders of Nigeria (CORBON), Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), Quantity Surveyors Registration Board of Nigeria (QSRBN), and Town Planners Registration Board of Nigeria (TOPREC) have been instrumental in shaping the landscape of our nation.
5.    Your commitment to upholding ethical standards, fostering innovation, and promoting continuous professional development among your members is commendable. The strides made in advancing the quality and safety of our built environment through your collective efforts have not gone unnoticed.
6.    As the Minister of Housing and Urban Development, I want to assure you all of my commitment to implementing historic reforms that will reset the housing and urban landscape of the country.
7.    His Excellency, President Bola Ahmed Tinubu, GCFR, has a bold vision for the sector and is committed to backing it up with the necessary political will to break down all barriers that discourage investment in the sector.
8.    At the Ministry, I have taken Mr. President’s vision and am determined to actualize it.  We want to drive through initiatives that will create an enabling environment for easier, safer, and profitable private sector investments in the sectors.
9.    Top on our agenda is establishing credible, scientific, and reliable housing data for planning and policy formulation.
10.    For years, our nation has grappled with conflicting and unsubstantiated figures regarding this crisis. The range of estimates, varying from 17 million to 28 million, has not only been a source of embarrassment but also a hindrance to effective policymaking and strategic planning.
11.    We plan to fix this national embarrassment by developing and implementing a mechanism to deliver reliable housing data to guide policy formulation. We have begun a strategic collaboration with the National Population Commission on housing data. The plan is to work with the Commission to design and implement survey instruments specifically tailored to address housing-related questions to arrive at the actual housing deficit during their upcoming population and housing census exercise.
12.    We understand clearly that the housing deficit is not solely about the quantity of structures but also about the quality of living conditions. So, we want to know whether the homes that Nigerians live in provide access to good sanitation, proper toilets, sufficient living spaces, a healthy environment, and other essential amenities.
13.    To ensure that housing agencies under the supervision of the Ministry are optimized to deliver on your target of providing affordable homes to Nigerians, we have composed a Housing Reform Team of experts, stakeholders, agency representatives, professional bodies and academia to develop a robust framework for reform of the housing sector including thorough review of relevant laws and facilitation of necessary legislative amendments.
14.    This includes the Land Use Act of 1978, National Housing Fund (NHF) Act 1992, Federal Mortgage Bank of Nigeria (FMBN) Establishment Act 1993, Federal Housing Authority (FHA) Act 1973, PenCom Act to allow for increased investment in housing and the nationwide adoption and passage of the foreclosure law in states.
15.    The reforms and legislative amendments that the Reform Team will execute in collaboration with stakeholders and the National Assembly will be the most comprehensive set ever done in the history of housing and urban development in Nigeria.
16.    We have also composed a Multi-Agency Project Delivery Team that will ensure that all housing agencies work collaboratively together towards optimizing their strengths to deliver decent and affordable housing to Nigerians.
17.    In line with the Renewed Hope vision, we are also leading the much-needed reforms to ensure quick, easy, and efficient access to land, we have defined a framework for implementing historic land reforms that would unlock estimated $300bn in dead capital. Our aim is to ensure that Nigerians have legal titles over their land so they can use it to access credit for their business. Over 97% of land in Nigeria do not have titles thereby limiting its potential as an economic resource. We have engaged the Presidential Technical Committee on Land Reforms (PTCLR) and committed to reviewing and incorporating relevant recommendations.
18.    A key part of this includes the establishment of a National Land Commission. The Commission will provide the guidelines and regulations for operationalizing the Land Use Act 1978. This will help streamline land administration.
19.    To drive this process, we have composed a land reforms team comprising state governments, traditional rulers, relevant agencies, professional bodies, academia, stakeholders to ensure buy-in and inclusivity. With their recommendations we will draft an Executive Bill and proceed to the National Assembly for the amendment of the obsolete provisions in Land Use Act 1978.
20.    In line with the Renewed Hope Vision to ensure that all Nigerians including the NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation, we are creating the framework for the establishment of a National Social Housing Fund (NSHF) for your consideration and approval. We believe that access to decent housing is a human right, and all Nigerians deserve access to quality shelter.
21.    We also plan to boost building materials manufacturing in the country towards ensuring economic growth, creating jobs, reducing dependency on imports, and lowering the cost of construction materials and housing delivery.
22.    Our plan is to build six (1) Building Materials Hubs in each geo-political zone in the country. The hubs will be provided with relevant facilities, including access roads, electricity, fit for purpose housing and relevant linkages for manufacturers to site their firms and operate.
23.    To this end we have already composed a Building Materials Manufacturing Task Team comprising of experts and representatives from relevant government agencies, academia, professional bodies, and industry associations. Primarily, their job is to conduct a thorough assessment of the current state of the building materials manufacturing sector and produce a strategic plan for reforming the sector for implementation. We have already identified a set of consultants for prototype design of the hubs to be located one in each geo-political zone.
24.    In doing all these, we recognize the indispensable role of all professional bodies in the built environment and requested that you send representatives in those reform teams. Our partnership with the professionals will remain steadfast as we work hand in hand to devise innovative solutions, implement policies that promote sustainable development, and create environments that enhance the quality of life for all citizens.
25.    I assure you of my ministry's unwavering support in creating an enabling environment that fosters growth and development within the built environment sector. We are committed to working hand in hand with your esteemed organizations to formulate policies that are responsive to the evolving needs of our nation and its citizens.
26.    Once again, I thank you for gracing us with your presence today, and I look forward to working with you all. Together, let us build a better Nigeria for generations to come.
27.    Thank you.

The Commitment Of The Federal Ministry Of Works Under H.E Sen. Engr Nweze David Umahi...
Dec
17
2023

The Commitment of the Federal Ministry of Works under H.E Sen. Engr Nweze David Umahi, on Prompt Supervision and Quality Delivery of Projects is Yielding Fruits, Contractors Now Ready to Meet the Expectations of Road Users and Indeed Nigerians

 

The Works Minister, His Excellency Sen. Engr Nweze David Umah did not spare a moment upon arriving in Nigeria from Cotonou, Benin Republic where he chaired a Steering Committee on the construction of Lagos- Abidjan Highway Corridor Development Project on 15th December,2023, and he moved to pay unscheduled inspection visit to some ongoing Federal Road projects around Rivers State.

 

The action minister is particular on standard, design, and specification. He gives attention to every detail on the contract award, ensures that certificates generated are accounted for by the Ministry's Engineers, and that Resident Engineers, Controllers and Consultants are on the ground to monitor project details. Umahi works on weekends, day and night, and takes no excuse for an answer. His eyes are on the ball, making sure that the vision of Mr. President on the road infrastructure revolution under his Renewed Hope administration is achieved within a record time.

 

Sen. Umahi visited the following Federal Projects on 16th December 2023, upon arrival from Cotonou, and it was a marathon inspection that did put the contractors, the Ministry's Engineers and the consultants on their toes. The projects visited are:

 

1. Rehabilitation of Enugu to Port Harcourt Section 4: Aba to Port Harcourt at Km 204 to Km 206 by Messrs. CCECC and
2. RCC section of the East West Road between Eleme junction and Onne Port.

 

Very soon, Nigeria will see that the Renewed Hope administration of His Excellency, Sen. Asiwaju Bola Ahmed Tinubu GCFR is on a mission to restore the hope of Nigerians for a prosperous future we can all be proud of.

 

Pictures Speak. Pls share and be ready to be part of the supervision. It is your right. Contact us on our dedicated numbers to report any shoddy job or unnecessary inconveniences to road users by contractors.

TALKING POINTS FOR THE HONOURABLE MINISTER, FEDERAL MINISTRY OF HOUSING & URBAN DEVEL...
Dec
12
2023

TALKING POINTS FOR THE HONOURABLE MINISTER, FEDERAL MINISTRY OF HOUSING & URBAN DEVELOPMENT, ARC. AHMED MUSA DANGIWA, AT THE NIGERIA DIASPORA INVESTMENT SUMMIT (NDIS) COURTESY VISIT, ON TUESDAY, 12TH DECEMBER 2023


Protocol

Good morning, ladies, and gentlemen.

1.    It is my pleasure to welcome the leadership of the Nigerian Diaspora Commission (NiDCOM) under the leadership of Hon. Abike Dabiri to the Federal Ministry of Housing and Urban Development.

2.    I also want to appreciate and acknowledge the innovative drive of the NiDCOM Chairman and her team for the good work that they are doing in actualizing the mandate of the Commission.

3.    Like I said at the 6th Edition of the Nigeria Diaspora Investment Summit, NIDCOM has over the years championed several initiatives and programs that are helping our country leverage the massive potential of our diaspora for national development. We have over 20million Nigerians in Diaspora remitting an average of over $24bn per annum.

4.    Madam Chairman, we commend your leadership, the support of your team and partners and pray for more strength and wisdom to tap this huge potential.

5.    As a Ministry, we are willing to support Diaspora initiatives in the housing and urban development space as well as encourage partnerships with the Diaspora towards making a change in the housing and urban development narrative of our dear country.

6.    We are also committed to providing necessary support to NiDCOM’s plans to ensure that Nigerians in diaspora can own homes in Nigeria.

7.    At the Summit, I launched the FMBN Diaspora Mortgage Loan which I had initiated and developed as the MD/CE of the Bank.

TALK ABOUT THE CURRENT STATUS OF THE FMBN DIASPORA MORTGAGE LOAN:

8.    The Federal Housing Authority (FHA)is also involved as part of the Ministry’s efforts to cater to the Diaspora. They have undertaken to develop the Diaspora City Project under a Public Private Partnership comprising the FHA, The Nigerians in Diaspora Commission (NIDCOM) the Federal Capital Territory (FCT) and the private sector.

TALK ABOUT THE CURRENT STATUS OF THE FHA DIASPORA CITY PROJECT

9.    Our overall goal is to ensure that as our brothers and sisters’ sojourn abroad, they also have a decent shelter over here in Nigeria to call their home.


10.    I would like to assure Madam Chairman that the Ministry is committed to taking relevant actions towards ensuring that FMBN and FHA deliver on the stated objectives of these initiatives.

11.    Thank you for your attention and may God bless Nigeria. 

Nigeria LNG Commended For Commitment To The Completion Of Bodo-bonny Federal Road In ...
Dec
12
2023

Nigeria LNG Commended for Commitment to The Completion of Bodo-bonny Federal Road In Rivers State And Interest To Connect To East West Road

 

The Hon. Minister  of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has commended Nigeria  NLG Limited for its commitment to funding the completion of the Bodo-Bonny Federal road in Rivers State in line with the tripartite agreement with Federal Government and Julius Berger Nigeria Plc, and for indicating  interest  to connect the road to East West Road to maximize the economic potentials  of the area. The Hon Minister  made this commendation when the management  of Nigeria  NLG   Ltd led by its MD/ CEO, Dr Philip  Mshelbilla, visited him in his office at Federal  Ministry  of Works Headquarters, Mabushi Abuja on 11th December,2023. He further  commended  them for  putting  the interest  of Nigeria  first in their contractual  negotiations and for keying  into the innovations and ideals of the Renewed  Hope Administration of President Asiwaju  Bola Ahmed Tinubu,GCFR with respect  to quality, innovations, cost effectiveness  and timely completion  of  road projects embarked upon by Federal Government. 

 

"Thank you very much. When I see Nigerians that are standing for the country, I feel very excited because Nigeria is our only country. We can't mortgage the country; we can't sell the country.

 

I saw your letter with regard to requests by Julius Berger Nigeria Plc, the contractor, to increase the contract sum. And you and your board together  with your team vehemently stood against that.  That gave me some teeth to bite because I saw a commitment by all parties that this project will not increase beyond the augmented amount of 199,000,000,000. 

 

So, I want to commend you for that." 

 

The Hon. Minister enjoined Julius  Berger  to respect the spirit and letters  of the tripartite  agreement and go back to site, assuring  that Federal  Government  would   offer compassionate  considerations on the remaining  16% uncompleted  job without  necessarily expanding the contract envelope.

 

"I discovered by the letters of JB that they have abandoned the site, and that's against the contract they signed, even if they needed to leave the site, the general conditions of contract specify the procedures  for notices in such a circumstance.

 

Well, we have discussed with them and I said, we are going to look at the remaining 16% on a compassionate ground,   and see whether there is any merit, and  we can see if there is any money left in the contingency, but definitely will not expand the envelope.

 

Expanding the envelope means you are going back to your Board. Expanding the envelope means my going back to Federal Inland Revenue, going back to BPP, going back to Mr. President, going back to  Federal Executive Council. So it's a long journey, and that will not allow that project to be completed as planned".

 

Speaking  on behalf  of the management  of Nigeria NLG Ltd, the  MD/CEO reiterated the  vision of the company  in not only building  a globally competitive LNG  company but also in contributing  towards  building  a better  Nigeria by  delivering  quality  infrastructure through projects  such  as the Bobo-Bonny  road being  funded  by NLNG. He assured  that everything  possible  would  be done to complete  the road on time  as provided under the agreement bearing in mind the concerns of the contractor handling the project.

 

"With regards to  coming back to the Bonny Bodo road, we see two parts to it, the main road itself. We are really looking forward to that being completed on time. We have had commitments in the past from the contractor around its completion and we do understand that there are concerns around  what is happening  in the economy  now".

 

He thanked  the Hon. Minister  of Works for his commitment to road infrastructure  revolution  and expressed hope that the economy  of Nigeria  would  bounce back with the  manifest  determination  of President  Tinubu's administration  in fixing  the critical  infrastructure  for the growth of our economy. He assured the Hon. Minister of the  readiness  of the company  to partner  with  Federal  Government  always  in her developmental  efforts.

 

"We have indicated an interest to pursue the extension of that road from Bodo so that it connects to the East West Road. That way you then have a complete corridor of major roads connecting to East West Road, rather than ending in Bodo.

 

In summary, just to thank the Minister  again, your commitment to projects like this across the country  will indeed make a huge difference to the common man, to transportation of people, farmers who need to move their products".

Minister And Directors Meet In Preparation For Budget Defence With The Joint Committe...
Dec
09
2023

Minister and Directors Meet in Preparation for Budget Defence with the Joint Committees of National Assembly

 

The Directors of the Federal Ministry of Works have risen from their in-house budget defence with the Honourable Minister in preparation for budget defence with the Joint Committees of National Assembly slated for 11th December 2023.

 

The Honorable Minister thanked the Acting Permanent Secretary and all the Heads of Departments who handled the Ministry's budget for their commitment to the appraisal of the 2023 budget and the preparation of the 2024 budget proposal.

 

The Minister noted that the road sector needed a different kind of attention beyond the 2024 budget envelope received by the Ministry.  For a developing nation like Nigeria, road sector development is a catalyst for economic development.  The road sector has the potential to improve the security sector, agricultural sector, trade and investment, health, education, and, in fact, every aspect of the development of every nation.

 

The Minister thanked very highly the President of the Federal Republic of Nigeria, His Excellency, Senator Asiwaju Bola Ahmed Tinubu, GCFR for the attention given to the Ministry and his approval of concrete pavement  in most of the 2024 projects. He stated that the Ministry is committed to the development of road infrastructure in line with the Renewed Hope agenda of Mr. President. The Minister noted the huge debts arising from unpaid certificates inherited from the past administration, which runs up to N1.5 trillion up till date and the expected contract reviews arising from inflation.

 

These two factors are recognized in the Ministry as issues that must be confronted in order to move forward.

 

The Minister has, therefore, set up six committees of one committee per geopolitical zone to review all debts of unpaid certified certificates generated before May 29th, 2023, and from May 29th 2023 to date. 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 reverify 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 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.

 

The entire Directors of the Ministry pledged for a renewed vigor in the supervision of the projects, and the results are already evident.

REMARKS BY THE HONORABLE MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AHMED MUSA D...
Dec
07
2023

REMARKS BY THE HONORABLE MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AHMED MUSA DANGIWA AT THE MEETING WITH MILLARD FULLER FOUNDATION ON THURSDAY, 7 DECEMBER, 2023 IN ABUJA

Protocols
Good afternoon, ladies, and gentlemen.
1.    It is my pleasure to welcome the leadership and staff of the Millard Fuller Foundation, an organization that embodies the spirit of progress and compassion in the realm of affordable housing, to the Federal Ministry of Housing and Urban Development.
2.    The mission of the Millard Fuller Foundation resonates deeply with the core values of our Ministry of Housing and Urban Development and the Renewed Hope Vision His Excellency, President Bola Ahmed Tinubu for Quality Housing for All Nigerians.
3.    Their commitment to providing truly affordable homes for mid-low-income earners through collaborative partnerships is commendable and inspiring.
4.    Like Millard Fuller, we also believe that what we do here does not only lead to the construction of houses, but that we are also helping to build lives and empower communities across Nigeria.
5.    We also share in the understanding that a home is not just a structure made of bricks and mortar. It is the cornerstone of stability, the sanctuary of safety, and the conduit to essential amenities. It represents a vital asset that can transform lives, create opportunities, and be the foundation upon which dreams are built.
6.    Moreover, their programmatic focus on building basic, decent, and affordable homes for low-income earners aligns perfectly with our ministry's goals.
7.    Since my assumption of office, I have made it clear that as a Ministry we must build for the 80 percent of Nigerians that fall within the low to medium income segment. They are in fact the majority. And as Nigerians, every one of them deserve to have access to decent and affordable housing. That is why we set up an Affordable Housing Design Committee with an initial focus of building homes that are organic and with price tags as low as N4M. I am particularly saddened that the possibility of this is fading with the high inflationary trends which are having a negative impact on the price of construction materials.
8.    But I have not given up on my charge to our Directors and the Committee on exploring all possible areas to lower the price barrier of homeownership for Nigerians.
9.    Relatedly, as part of the Renewed Hope Vision for Urban development, the Ministry plans to upgrade a total of 26 slums in the Six (6) regions of the country, including the Federal Capital Territory. This project would ensure the provision of key infrastructure and ancillary services including access roads, water supply, solar streetlight, drainages, sanitation, and waste management services etc., that would improve the living standards of the slum residents in the project sites and the urban poor in general.
10.    We also plan to set up a National Social Housing Fund (NHSF) to ensure that all Nigerians including the NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation.
11.    We also plan to boost building materials manufacturing in the country towards ensuring economic growth, creating jobs, reducing dependency on imports, and lowering the cost of construction materials and housing delivery.
12.    Our plan is to build six (1) Building Materials Hubs in each geo-political zone in the country. The hubs will be provided with relevant facilities, including access roads, electricity, fit for purpose housing and relevant linkages for manufacturers to site their firms and operate.
13.    These are some of our plans that align with the work that Millard Fuller Foundation is doing.
14.    And I must say that as a private sector initiative, their work serves as a shining example of what can be achieved when compassion, dedication, and innovation converge. Their collaborative approach, engaging with individuals and organizations, showcases the power of unity in tackling complex societal issues.
15.    As we move forward in our quest to ensure housing security and inclusivity for all, I consider a partnership with the Millard Fuller Foundation as necessary. We would like to learn from your lessons in designing and delivering decent but low-budget houses, and how you are innovating in the face of high inflationary trends.
16.    Once again, I thank Millard Fuller Foundation for the visit and look forward to further collaboration.
17.    Thank you.

Federal Government Takes Over The Completed 2nd Niger Bridge Project With Ancillary F...
Dec
04
2023

Federal Government Takes Over the Completed 2nd Niger Bridge Project with Ancillary Facilities from Julius Berger Nigeria (JBN) PLC

 

…..Assures of Its Commitment to Delivery Of Enduring Road Infrastructure in Nigeria


…..As Sen. Umahi Harps on Prompt Supervision of Projects Of The Federal Ministry of Works Says Day and Night and Even Weekends Shall Not Be Spared

 

The Federal Government of Nigeria has restated its commitment to the delivery of enduring road infrastructure that will conform with the world best standard and add value to the economic recovery action plan of the Renewed Hope administration of the President of the Federal Republic of Nigeria, His Excellency, Sen. Asiwaju Bola Ahmed Tinubu, GCFR This  was contained in the message of the Hon. Minister of Works, His Excellency Sen. Engr. Nweze David Umahi, CON when he received the handover of the completed 2nd Niger Bridge project and ancillary facilities from the contractor that handled the project, Messrs. Julius Berger  Nigeria (JBN) Plc this  Sunday, the 3rd day of December 2023 at the 2nd Niger Bridge toll station "We are here to take over the completed works of Julius Berger  Nigeria Plc on the 2nd Niger Bridge and some access roads. We are satisfied with the works done  and which project circle was completed under the administration of President Bola Ahmed Tinubu. We thank the immediate past administration of President Mohammadu Buhari for doing quite a lot to bring this project to fruition and of course my predecessor, His Excellency, Babatunde Raji Fashola, CON, SAN who was the Hon. Minister of Works that handled this project. The job is impeccably beautiful and well completed".

 

The Hon. Minister stated that  in line with the new innovations of Mr. President on road infrastructure, his Ministry would work to ensure the installation of solar powered light on the length of the completed project, ensure that the two interchanges of the bridges are completed, acquire more land through the State Government so as to have service stations and  ensure security on the road through the installation of CCTV cameras. And the Ministry also plans to concession the project through the HDMI programme.

 

"We have the light issue, and we shall put our heads together on how to have light permanently along the completed road especially at night and we have agreed on solar solution. The road project will be fully completed when we have completed the two interchanges. One is taking road users off from Asaba town so that if you are coming to this bridge, you don't have to go through Asaba town to encounter vehicular traffic  while the other one is to take road users off  Onitsha town to avoid traffic, and it is when this is done that the entire job will be said to have been fully completed. Julius Berger and RCC have been respectively proposed to handle the jobs." "However, If we get an investor who is prepared to fund the two interchanges, we shall concession the two projects to such investor  under our HDMI programme, and we are going to acquire more land here so we can establish service stations and we get the private sector to build hotels, restaurants, supermarkets, fillings stations and other facilities for public use as we see in Western world" "And  of course we are going to ensure security surveillance along the road through the installation of CCTV cameras and deployment of security personnel so that within this axis you can have access to security within the shortest possible time".

 

The Hon. Minister also said that although Federal Government is taking over the completed 2nd Niger Bridge, the contractor shall still be liable within the defect liability period and so if anything goes wrong in the completed job, the contractor will be called upon to fix it. He added that the toll would be activated the moment the two interchanges are fixed.

 

Speaking during the handover ceremony, the Director Bridge Design and Construction, Federal Ministry of Works Engr. Obioha thanked the Federal Government for working assiduously to ensure that the project was completed. He noted that the Ministry worked well with the contractor to ensure the project was completed on record time and hoped that the public would complement this Federal Government's efforts by abiding by the rules of the road and helping to ensure the safety and protection of the installations along the road.

 

On his own part, the Managing Director of Julius Berger Nigeria (JBN) Plc, Dr. Las Ritcher said the bridge was commissioned by the immediate past administration but there was need for a technical handover to the Federal Ministry of Works, hence the handover ceremony. He expressed hope that the Federal Ministry of Works under Sen. Umahi who is known for his penchant for quality delivery of jobs would be satisfied with the quality of job done "He has seen what Julius Berger had delivered to the highest quality. I think he is satisfied and from tomorrow we can say it is not our project; it is now the project of the Federal Ministry of Works. I am delighted to hand it over to the client and that he can run that road, including the toll station".

 

It is to be noted that the contract awarded to Julius Berger Nigeria (JBN) Plc is for the construction of 2nd Niger Bridge linking Anambra and Delta States, Contract No. 6475 and construction of access road from existing Benin- Asaba Expressway to approach link road to 2nd Niger Bridge, Contract No 7919.

 

Meanwhile the Hon. Minister of Works had on the same Sunday, 3rd December 2023 paid an inspection visit to the project site of CGG Nig. Ltd on the contract for the Rehabilitation of Enugu- Port Harcourt Expressway Section 111: Enugu- Lokpanta 61.15 km road. The Hon. Minister also visited the collapsed New Artisan bridge along NNPC Mega Filling Station Enugu- PH  Expressway, Enugu State. Works in those locations are ongoing and are expected to be delivered on record time.

PHOTO NEWS

Jan
11
2024

MINISTER DIRECTS CONTRACTORS TO GO BACK TO SITE, SETS TIME FRAME FOR PROJECTS DELIVERY

Hon. Minister of Works, H.E Sen. Engr. Nweze David Umahi CON with Contractors

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PHOTO NEWS

Jan
12
2024

HANDOVER CEREMONY OF THE NEW PERMANENT SECRETARY, FEDERAL MINISTRY OF HOUSING AND URBAN DEVELOPMENT, DR. MARCUS O. OGUNBIYI, OUTGOING PERMANENT SECRETARY, FEDERAL MINISTRY OF WORKS AND HOUSING, MAHMUDA MAMMAN AND THE NEW PERMANENT SECRETARY, FEDERAL MINISTRY OF WORKS, YAKUBU A. KOFARMATA AT THE MINISTRY’S HEADQUARTER ON THE 12TH OF JANUARY, 2024

Handover ceremony of the new Permanent Secretary, Federal Ministry of Housing and Urban Development, Dr. Marcus O. Ogunbiyi, outgoing Permanent Secretary, Federal Ministry of Works and Housing, Mahmuda Mamman and the new Permanent Secretary, Federal Ministry of Works, Yakubu A. Kofarmata at the Ministry’s Headquarter on the 12th of January, 2024

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