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FG Budgets Over N800bn for 2,254 Roads, Bridges in 2024

December 11, 2023
in Business
FG Budgets Over N800bn for 2,254 Roads, Bridges in 2024
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The federal government has budgeted a mammoth N837 billion across the 2023 supplementary budget and proposed 2024 spending plan specifically for improving 2,254 federal roads and bridges nationwide.

Nigeria’s extensive roads require constant rehabilitation and expansion to serve the infrastructure needs of Africa’s largest economy.

This massive investment aims to construct 1,925 new roads while upgrading 329 existing routes across various regions. It signals federal authorities prioritizing infrastructure to unlock national commerce and mobility despite current fiscal constraints.

Flagship projects receiving chunks of funding include the East-West road and strategic Benin-Akure highway which facilitate interstate trade.

Similarly, linking northern and southern regions, the critical Kano-Maiduguri road and Enugu-Makurdi artery obtain budget allocations for construction pushes. Culvert and drainage improvements totalling over N5 billion also target frequently flooding roads.

Urban centres like Lagos and the Federal Capital Territory likewise see proposed upgrades to crucial commuter routes and traffic bottlenecks.

Areas like Apapa Port access roads and the notorious Lagos-Otta expressway hampered by perennial congestion secure provisional funding for necessary expansion.

The Ministry of Works championing the road development efforts will purchase 50 vehicles to augment monitoring, quality inspection and maintenance capabilities.

An additional N15 billion contingency funding allows for adjusting projects or reacting to unexpected needs mid-year.

Addressing Debts for Timely Delivery

A chronic challenge with Nigerian infrastructure programs has been timely payments to contractors already delivering projects on the ground.

To confront nearly N1.5 trillion in owed certificates and approved cost variances, Works Minister David Umahi established dedicated committees empowered to verify and reconcile debts.

The aim is to accelerate legitimate payments so contractors fully mobilize on existing contracts instead of abandoned sites.

The Ministry set a December 2022 deadline for relevant construction companies and consultants to present documents supporting payment claims tied to formerly approved or pending contracts.

Opportunities Beckon Local Construction Sector

For Nigerian engineering and construction groups, the bonanza of new road contracts offers valuable opportunities.

Particularly smaller firms with equipment and capabilities matching modest contract sizes can target winning bids.

Larger market players can pursue partnerships, subcontracts or materials supply roles feeding into infrastructure megaprojects.

Investing in added capacity like bitumen, cement, gravel or machinery production aligns well with surging national demand from roadbuilders.

If both federal and state budgets sustain focus on roads and transport networks, construction sector jobs and revenues should accelerate.

Roads unlocked by these investments will likewise drive growth for agriculture, manufacturing, supply chains and services thriving on better connectivity.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BusinessElitesAfrica – https://businesselitesafrica.com/2023/12/11/fg-budgets-over-n800bn-for-2254-roads-bridges-in-2024/

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