Following the Federal Executive Council (FEC) meeting held in Abuja, Minister of Works, Dave Umahi, unveiled significant approvals totaling ₦873.23 billion for the Federal Ministry of Works. Speaking to reporters, Umahi clarified misconceptions regarding the ministry’s concrete roads policy, attributing rising cement costs to production expenses rather than the policy itself.
The approved budget allocations include:
1. Augmentation for Obajana-Benin Road: A substantial augmentation of N757 billion was approved for the dualization of the 489km Obajana-Benin Road. Originally awarded in 2012 for light rehabilitation at N122 billion, the project underwent review and dualization, bringing the total cost to N897 billion. Contractors have been reinstated to accelerate project execution.
2. Rehabilitation of the Isheri-Ogun Road: An allocation of N2.23 billion was approved for the rehabilitation of the Isheri-Ogun Road, connecting Isheri North to Ogun State. This development is expected to provide an alternative route to alleviate congestion on the Lagos-Shagamu Road, which will eventually be tolled upon completion.
3. Outer Marina Shoreline Protection: FEC approved N114 billion for the Outer Marina shoreline protection project. This initiative aims to reinforce shorelines using modern interlocking concrete technology, addressing concerns raised by proximity to the Red Line and other existing structures. BuildWell emerged as the preferred contractor, offering competitive pricing and advanced construction techniques.
Umahi refuted claims linking the ministry’s concrete roads policy to soaring cement prices, citing evidence of increased production costs for cement companies. He emphasised that concrete roads serve as a complementary solution for areas with high water tables and poor soil conditions, rather than a complete replacement for traditional asphalt roads.
In response to rising cement costs, Umahi highlighted ongoing discussions between President and cement producers to explore incentives and reduce prices. He noted positive strides, such as reduced ex-factory prices reported by BUA Cement Plc in Sokoto.
Overall, the approved budget allocations signify the government’s commitment to advancing infrastructure development nationwide while addressing challenges in the construction industry.
