…As Umahi highlights impact of naira float on projects

THE World Bank has expressed interest in supporting Nigeria’s efforts to rebuild and upgrade critical road infrastructure, as the Nigerian government seeks external financing to bridge funding gaps in the sector.

This followed a meeting between the Minister of Works, Mr David Umahi, and a delegation from the World Bank led by its Country Director, Mr Matthew Verghis, in Abuja on Friday.

Mr Umahi urged the World Bank to consider financing strategic road projects through the Ministry of Works and the Presidency, noting that Nigeria required additional funding to complete ongoing infrastructure initiatives.

He explained that funds from the Bank would be channelled towards the completion of key road projects, with tolling mechanisms introduced on such roads to ensure sustainability and repayment.

In a statement issued after the meeting, Mr Umahi attributed the funding challenges in the road sector to the high cost of construction and dwindling financial resources, worsened by the floating of the naira, which had made the cost of roads more expensive.

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“Infrastructure development remains the most critical requirement for Nigeria to attain its desired position in global economic competitiveness. Efficient road networks are fundamental to national growth, trade, and social development,” he said.

The minister disclosed that upon assuming office, the ministry inherited about 260 weak road links, 50 dilapidated bridges, and numerous failed road sections nationwide.

To address these challenges, he said President Bola Ahmed Tinubu approved N20 billion for the completion of some priority road projects, many of which were being commissioned across the country.

Umahi added that given prevailing economic realities and long-term planning had become difficult, forcing the government to focus on short-term interventions.

He stressed that funding remained the major constraint, noting that no new projects could be initiated until existing ones were completed.

The minister also highlighted the Nigerian government’s Development Management Initiative and the “Build, Update and Maintain” strategy, under which the government constructs roads while the private sector is engaged to maintain them, to ensure sustainability and value for money.

The 2026 budget of the Ministry of Works is N3.485 trillion, which is the highest among the 54 ministries, including the presidency and the National Assembly.

Lagos-Calabar Highway contract

The ministry, supervised by Engr David Umahi, has embarked on the $13 billion Lagos-Calabar Highway, which has generated a lot of criticism owing to the size of the project and its questionable impact on the economy.

Economy Post earlier reported that President Tinubu’s son, Oluwaseyi or Seyi, owned an offshore company with the son of a tycoon who recently received the contract to build a 700-kilometer highway spanning the West African country’s coast, leaked corporate documents reveal.

In May 2024, the government announced the first phase of building by Hitech Construction Company Ltd., which is a subsidiary of a conglomerate owned by the brothers Ronald and Gilbert Chagoury. 

READ ALSO: Corruption: Tinubu’s son, Seyi, linked with company handling $13bn Lagos-Calabar Highway

Activists and opposition politicians lambasted the deal, arguing that it violated regulations because it was not done through a public tender. Mr Umahi said the government was fighting a legal battle in relation to the highway at that time.

“The entire process is before the court,” he said.

Critics also highlighted the longstanding business dealings and friendship between the Chagoury brothers and President Bola Tinubu. Mr Umahi said the relationship played no role in the construction contract.

“The Lagos Calabar Coastal Highway procurement followed due process and the president hasn’t any hand in the award or execution,” he said.

The association between Tinubu and the Chagoury brothers is well known to Nigerians. But it was discovered that the younger generation also had a corporate relationship.

The president’s son, Oluwaseyi, was a majority shareholder in an offshore company alongside Ronald Chagoury Jr, who shares a name with his father. The firm was incorporated 10 years ago in the British Virgin Islands.

The BVI offers corporate anonymity, but the involvement of the two men was revealed in company documents leaked to the International Consortium of Investigative Journalists. The current ownership of the BVI firm is unknown.