The Federal Ministry of Works is set to introduce a 15-year shelf-life insurance guarantee for projects, an initiative aimed to ensure project durability and sustainability.
Minister of Works, Senator David Umahi, disclosed this on Monday during the 2024 budget hearing before the joint committee on works.
The minister noted that the ministry’s focus on controlling costs related to concrete and asphalt pavement is necessary for preventing excessive contract cost increments.
He revealed plans to include a maximum of 5 per cent Variation of Price (VoP) clause in contracts to manage cost fluctuations.
The proposed budget for 2024 indicates a total sum of N657,228,251,596, with significant allocations for various sectors. Specifically, N566,466,977,361 is proposed for the capital budget of the main Ministry of Works, while allocations for parastatals like FERMA and AFRIGIST are also delineated.
Umahi detailed that the 2024 budget contains 693 new projects aimed at enhancing road network connectivity to bolster socio-economic activities in the country.
While addressing challenges within the highway development sector, Umahi underscored inadequate funding and a scarcity of young engineers and technical officers due to employment embargoes. He emphasized the need to explore additional funding sources and lift employment embargoes to ensure effective project supervision.
The 2023 appropriations were also reviewed during the hearing, highlighting the allocations and utilization of funds within the Ministry of Works and its parastatals.
Lawmakers present at the hearing included a range of senators and members of the House Committee on Works, all engaging in discussions centered on ensuring alignment between the ministry’s budget and the nation’s needs.
Umahi’s comprehensive presentation highlighted key challenges, proposed solutions, and the strategic direction of the Ministry of Works in the coming fiscal year.
