The Federal Government has threatened to terminate contracts in projects where contractors have failed to meet specifications.
Minister of Works, Senator David Umahi, who issued the threat following a three-day inspection tour of the Ahoada and Eleme sections East-West road, as well as the Port Harcourt – Enugu Express road recently, said government would not tolerate non-performing contractors delaying the completion of critical infrastructure projects in the country.
The minister’s warning comes on the heels of the government’s efforts to improve infrastructure development and ensure that projects are completed efficiently and effectively. He noted that the East-West road project is a critical infrastructure project that connects the eastern and western regions of Nigeria, adding that the government is keen on ensuring its timely completion for the benefit of the people.
The minister said that contrary to an earlier stance of the government in non-revision of ongoing projects until delivery, the President Tinubu has approved the review of ongoing projects considering the current realities in the country.
He clarified that the Bola Tinubu administration never halted the Nigerian National Petroleum Company Limited (NNPCL) tax credit scheme used in funding critical infrastructure across the country.
He said: “In the week ahead, we are going to terminate several projects that are not performing and go after the contractors to recover our money. We had a meeting with NNPCL and Chairman, Federal Inland Revenue Service on the continuity of NNPCL tax credit scheme and the president never stopped the NNPCL tax credit.
He further disclosed that he would meet cement manufacturers to identify and mitigate some of the challenges facing them, as well as punish producers ripping off Nigerians with exorbitant prices.
“I have earlier met the cement manufacturers behind closed doors and they explained why some of them have increased their prices. They complained of the high exchange rate and challenges in importing spare parts for their machines, as well as problems of buying diesel and gas.
“But when we ask for their ex-factory price, some are still selling N5,500, some about N6,000, so why do we have the cement sold sometimes between N10,000, others N12,000, it is not healthy for us. So, the President has directed that we interface with them, look at their problems and see who is ripping off Nigerians and how we can help them, both the transporters and the manufacturers.”
However, he charged the contractors not to allow the incoming rainy season to disrupt their work, directing them to build trenches that would drain rain and store them at the shoulders of the road.
Inspecting the Ahoada section of the East-West road that was severely affected by flash floods in 2023, the minister said the government opened bids for the affected sections of the road, adding that contractors with excellent capabilities have taken up the rehabilitation, and deployed a more durable design.
He expressed satisfaction with the ongoing work in the section, emphasising that contractors would no longer be allowed to delay road construction for flimsy reasons.
Also speaking at the construction site, Deputy Chief Whip of the Senate and Member of the Senate Committee on Works and Public Accounts, Onyekachi Nwaebonyi, said contractors must henceforth show value for the monies they received from the Federal Government.
