By Dinah Uwese
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In a bid to prioritize and optimize the use of limited resources, the Federal Government has made the bold decision to halt funding for all ongoing projects simultaneously. This move, spearheaded by Minister of Works David Umahi, aims to address the stark disparity between the escalating contract costs and the available funding.
In a recent briefing with journalists in Abuja, Umahi shed light on the reasoning behind this decision. “We’ve been grappling with this issue since September 2023. It’s a matter of reconciling the project costs with the available funds.
We’re not oblivious to the fact that contractors and stakeholders haven’t reported any crisis, but we must prioritize our resources.”Umahi emphasized the need for a collaborative approach, stating, “It’s a partnership, a marriage of sorts.
If our conditions aren’t conducive for the contractors, then we must reevaluate our priorities.” The minister underscored the government’s commitment to reviewing ongoing projects, with a focus on completing those that have reached a significant milestone.
“We’re currently reviewing the inherited projects, taking into account the availability of funds. If a project has attained around 80% completion, we’ll propose it to the Federal Government for prioritization and completion,” Umahi explained.
This decisive move marks a significant shift in the government’s approach to project funding, as it seeks to optimize resources and ensure the successful completion of viable projects. By doing so, the government aims to promote a culture of accountability and transparency in the management of public funds.
As the government navigates this complex process, Umahi’s leadership and commitment to fiscal responsibility will be crucial in ensuring the successful implementation of this new approach. The minister’s determination to prioritize viable projects and halt funding for unviable ones sends a strong message about the government’s resolve to make the most of its limited resources.
In the words of Umahi, “We must be prudent in our resource allocation. It’s time to take a hard look at our projects and make tough decisions to ensure we’re getting the best value for our money.” This bold stance is a testament to the government’s commitment to transparency and accountability, and a significant step towards optimizing the use of public funds.
Regarding ongoing projects, Umahi explained that the government will propose to the Federal Executive Council that funds be made available for projects that are near completion.
“We are reviewing such projects to go back to the Federal Executive Council in line with their directive. The President has not stopped all inherited projects,” he clarified.However, Umahi noted that the government will not hesitate to terminate contracts with contractors who fail to deliver.
“If we have a contractor that cannot complete at least one kilometer of roads, we are not going to carry out such a corporation,” he stated.The minister also highlighted the challenges posed by contractors and politicians who pressure the ministry to award projects regardless of their viability.
“They just want to hear from their constituencies and their communities and states that these projects have been awarded… We don’t want to allow public funds to go that way,” Umahi emphasized.
To address these challenges, the government will rely on clause 51, subsection 1 of the special conditions of contracts, which allows for the reduction of contract quantities based on available funds. “We’re going to be relying on that clause to begin to review contracts that were inherited within the limits of the availability of funds,” Umahi explained.
By taking a firm stance on project management, the Federal Government aims to promote transparency, accountability, and the responsible use of public funds.