Senator David Umahi, the Minister of Works and former Governor of Ebonyi State, has called for increased funding for his ministry. Specifically, he is proposing a boost in the 2024 budget allocation from N657.22 billion to N1.5 trillion. This request was made during the defense of the 2024 Budget estimate for the Ministry of Works in front of the National Assembly Joint Committees on Appropriation.
Umahi stressed that the additional funds would enable the completion of at least 10 critical roads and bridges in each of the six geo-political zones of the country. In addition, he put forth a request for an Emergency Fund equivalent to about 30% of the Budget Provision. This emergency fund, he explained, would address unforeseen emergencies that commonly occur on the road network, especially during the rainy season.
Furthermore, the minister urged an immediate review of all certified debts to contractors, suggesting the possibility of converting them into Promissory Notes. According to him, this approach would allow the ministry to more effectively utilize any appropriated funds to achieve its set objectives.
In addressing inflation, Umahi highlighted that many contractors are currently off construction sites due to the exhaustion of their contract VoPs (Variations of Prices). He proposed a comprehensive review of all VoPs and augmentations for projects, with any outstanding debts to contractors converted into Promissory Notes. Additionally, he advocated for aligning unit rates with the current realities of the construction industry.
Umahi also called for the encouragement of more eligible companies to participate in the Road Tax Credit Scheme. This initiative involves these companies front-loading their tax liabilities to contribute to solving the present challenges faced by the ministry.
