The Federal Government is owing contractors a staggering N2.2 trillion for certified road projects executed between 2024 and 2025, Minister of Works, Dave Umahi, revealed on Wednesday.
Umahi made the disclosure while defending the Ministry’s 2026 budget proposal before the Senate and House of Representatives Committees on Works in Abuja.
Despite the debt burden, the Minister announced an ambitious N3.244 trillion capital estimate for 2026, describing the coming fiscal year as an “Action Year” focused on completing major highways and four key “legacy projects” initiated by President Bola Tinubu.
According to him, the ministry inherited 2,064 ongoing projects in 2023, many of which have been rolled over due to funding constraints.
He disclosed that only N210.318 billion — about 9.7 per cent of the expected capital releases for 2025 — has so far been paid, worsening the funding gap.
Umahi blamed rising construction costs on the removal of fuel subsidy and the floating of the naira, which he said forced the government to re-scope and reprioritise several projects.
Top on the priority list for 2026 are the Lagos–Calabar Coastal Highway and the Sokoto–Badagry Superhighway. The Minister assured lawmakers that work would be delivered in phases, with some sections slated for commissioning by May 29, 2026.
He added that about 70 per cent of unfinished 2025 projects have been captured in the 2026 proposal, while new phases of ongoing projects would be funded in stages to guarantee timely completion.
Highlighting the importance of road infrastructure to security and economic growth, Umahi said the 2026 budget is designed to fix major arterial roads across the country.
In a move to boost transparency and public awareness, the Minister announced that all 10-kilometre stretches of federal road projects will now carry signboards identifying the Ministry of Works and featuring the photograph of President Tinubu.
He also commended the President for what he described as non-interference in contract awards.
“Mr President has never directed me to award contracts to any individual,” Umahi said, noting that this has helped to ease the procurement process and strengthen accountability.
With mounting debts and rising costs, the 2026 road masterplan now faces the critical test of funding and delivery as Nigerians await improved infrastructure nationwide.
FG Owes Contractors N2.2trn — Umahi Unveils N3.2trn ‘Action Year’ Road Budget for 2026
