Minister of Works David Umahi has defended the financing of the Federal Government's legacy road projects, stating that the loans are investment-driven and will be repaid through tolling and commercial developments along the corridors. He revealed that external financiers are funding 70 per cent of the projects, while the Federal Government will provide the remaining 30 per cent. Umahi emphasized that the projects are not just road projects, but investments with a return on investment.
Umahi cited the Lagos-Calabar Coastal Highway as an example, stating that five companies have indicated interest in taking over the completed first section and paying the government for its investment. He added that the infrastructure will stimulate economic activity and improve security. The minister also mentioned that the financing and procurement processes have passed through relevant institutions, including the National Assembly and the Federal Executive Council.
The Lagos-Calabar Coastal Highway has faced criticism over flooding, but Umahi defended the project, stating that the highway itself has not been flooded. He noted that the corridor has been prone to flooding for decades before construction began. According to him, studies showed that the highway had to be built above the existing flood level because of the coastal terrain's vulnerability to flooding.
Umahi also mentioned that the government is addressing flooding affecting properties along the corridor through new drainage infrastructure. For the 47.47-kilometre first section, service lanes and five-foot drainage channels are being built on both sides, with culverts to convey water across the highway into Lagos State drainage channels. He emphasized that the government is creating service lanes and serious hydraulic drainage channels to address the problem.
The minister discussed the progress of other legacy projects, including the Sokoto-Badagry Superhighway. He stated that the 120-kilometre Sokoto section is about 60 per cent complete, while the 258-kilometre Kebbi section has passed 40 per cent. Umahi put the costs at about N454 billion and N958 billion respectively, with both sections targeted for completion by the end of next year.
Umahi defended the reconfiguration of some Nigerian National Petroleum Company Limited (NNPC) tax-credit projects, including the Abuja-Lokoja corridor. He stated that Nigeria will continue to need borrowing to address its infrastructure deficit, arguing that better roads will generate economic returns beyond transport. The minister also discussed the impact of subsidy reforms, stating that they have helped prevent a deeper economic crisis.
Umahi urged Nigerians to assess the administration's performance against the economic conditions it inherited in 2023. He emphasized that the reforms have ended the use of government revenue and borrowing to support fuel imports, while the NNPC now remits funds to the Federation Account for distribution among the three tiers of government. The minister expressed confidence that the legacy projects will have a positive impact on the economy.
Key points
- The loans for the legacy projects will be repaid through tolling and commercial developments along the corridors.
- The projects are investment-driven and have undergone the required scrutiny.
- The government is addressing flooding affecting properties along the corridor through new drainage infrastructure.
