FEC Approves Contract Adjustments for Projects Initiated in 2006

The Federal Executive Council (FEC) has greenlit adjustments to contract amounts for projects that commenced in 2006 due to challenges arising from fluctuating costs of construction materials.

Minister of Works, Dave Umahi, made this announcement, citing significant increases in the prices of materials such as asphalt, diesel, and cement since 2006.

Umahi explained, “The prices of construction materials, like in 2006 we should be expecting asphalt to cost about N2000 per meter square, and today’s cost is between N27,000 and N30,000 per meter square.” He highlighted the implications of these cost escalations, stating that some projects initiated in 2006 had stalled due to the inability of the contracts to accommodate the increased costs.

READ ALSO: Nigeria’s Economy Suffers Due to Tinubu’s Actions, Urges Emulation of Argentina’s Approach- Atiku

One such project is the dualisation of the Kano-Maiduguri road, section four, Damaturu-Maiduguri, which was awarded in 2006. Due to the cost discrepancies, the contract value has been augmented from N39 billion to address the challenges and ensure progress.

Additionally, the maintenance of the Pankshin-Gindiri Road in Plateau state, initially awarded in 2017, received a substantial upgrade with its contract value increased from N10 billion to N20 billion.

Umahi further highlighted the Mayo-Belewa-Jega-Kanya-Tungur road project in Adamawa state, initially awarded in 2018, which saw its cost adjusted from N21 billion to N43 billion to align with prevailing construction market rates.

Another project mentioned by the minister is the road from Yakasai-Badume-Damagum-Makin Zali in Kano state, awarded in January 2021. Its contract value has been adjusted from N12 billion to N17 billion.

Emphasizing the importance of road maintenance for longevity, Umahi revealed plans for over 1,000 roads to undergo maintenance. He noted that a majority of these projects were initiated by previous administrations, underscoring the need for ongoing efforts to address infrastructure challenges across the country.