The Federal Government of Nigeria has approved a substantial budget of N820 billion aimed at completing the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway as well as the construction of the Bodo-Bonny road, which includes vital bridges across the Opobo Channel. This significant funding initiative was announced in a statement by Orji Orji, the Special Adviser (Media) to the Minister of Works, following a Federal Executive Council meeting held on September 23, 2024. The expected outcomes of these projects are crucial for transportation efficiency within the regions they connect, particularly as they contribute to improved economic activity and regional development.
The rehabilitation project of the Abuja-Kaduna-Zaria-Kano dual carriageway encompasses an 82-kilometer section that is being managed by Julius Berger (Nig.) Plc. The contract has undergone a re-scoping and a review that has adjusted its total estimated cost. The sum for this project now stands at approximately N740.8 billion, while the construction of the Bodo-Bonny road contract has an amended total of about N80.1 billion. These adjustments reflect the Federal Government’s strategy for ensuring proper resource allocation and effective project execution amidst economic constraints.
Minister Umahi highlighted the importance of corporate nationalism and price negotiations for the contractors involved in these substantial government projects, emphasizing the need to remain cognizant of the challenging economic climate in Nigeria. He provided a breakdown of the financial arrangements, explaining that of the contract amount for Julius Berger, an already disbursed N391 billion leaves about N340 billion for the completion of the remaining 164 kilometers of roadwork. The urgency for timely completion within a span of 14 months was also emphasized, showcasing the government’s drive toward infrastructural development.
In a forthright address, Umahi expressed the government’s readiness to support Julius Berger in moving forward with the projects, encouraging them to resume negotiations without hesitation. He urged the contractor not to seek increases to the contract sum, indicating a firm stance that could potentially lead to contract termination if Julius Berger does not comply with the revised budget. This decisive approach is aimed at eliminating any further delays and emphasizes the government’s commitment to seeing these vital infrastructural developments through to completion.
Specific expectations for mobilization were highlighted, with Umahi urging Julius Berger to engage multiple teams within the various project locations to expedite progress. He specified that the Bodo-Bonny road project has reached a stable agreement of N280 billion for completion in twelve months and reiterated the need for the contractor to initiate work at multiple sites. This multi-location mobilization is intended to ensure that the projects remain on track and are completed within the stipulated timeline.
Lastly, the Minister addressed funding strategies, proposing the allocation of 30 percent as an advance payment to the relevant contractors, emphasizing the necessity of this financial support to combat inflation and variations in costs during the project execution period. By ensuring that contracts are adequately funded and mobilized, the government aims to foster an environment conducive to quick completions and operational efficiency, thus bolstering infrastructural growth and improving connectivity within Nigeria’s diverse regions.
