The Federal Government has approved ₦733.89 billion for various road infrastructure projects across the country, including the dualisation of the Oyo-Ogbomoso Road in Oyo State.
Minister of Works, Dave Umahi, disclosed this on Monday while briefing State House correspondents after the 24th Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja.
The Ibadan-Ilorin Road’s Section Two, covering the Oyo-Ogbomoso axis, was awarded at a cost of ₦147.89 billion. The 147-kilometre stretch will be constructed using reinforced concrete pavement, with the contract awarded to GRVe.
In addition to the Oyo-Ogbomoso project, FEC approved funding for the dualisation of the Odupani-Itu-Idedem Item-Ikot Ekpene Road, which spans Cross River and Akwa Ibom states. The project, awarded to Decon Construction Nigeria Limited, is valued at ₦55 billion.
Similarly, the council approved ₦507 billion for the completion of the Abuja-Kaduna-Zaria-Kano Road, specifically Section Two, covering 164 kilometers. The contract was awarded to InfoWest Nigeria Limited, the same firm handling Sections One and Three.
Additionally, a ₦24 billion contract was awarded to China Civil Engineering Construction Corporation (CCECC) for the construction of a flyover at Abakpa, near the 82 Division in Enugu, to ease traffic congestion in the area.
Providing insights into the Odupani-Itu-Ikot Ekpene project, Umahi explained that the road was initially divided into three sections managed by different contractors; CCECC, Julius Berger, and Somatech.
While CCECC and Somatech agreed to cost reviews, Julius Berger demanded an increase exceeding ₦100 billion. Consequently, the government terminated Berger’s contract and re-awarded it through a competitive bidding process, with Decon emerging as the preferred contractor at ₦55 billion.
Responding to concerns raised in the Senate about perceived regional favoritism in project allocations, Umahi clarified that approvals are based on submitted proposals, not intentional bias.
He emphasized that project distribution depends on processing timelines, noting that the current administration is committed to completing all inherited projects, regardless of location.
“A senator once alleged that the South got more projects than the North. However, approvals depend on memos presented at FEC meetings. Some projects may take longer to process, but that does not mean there is favoritism,” Umahi explained.
He further noted that many ongoing projects were inherited from the previous administration, and President Bola Tinubu has prioritized their completion to ensure nationwide infrastructure development.
In a separate development, the Federal Executive Council approved ₦1.09 billion for an insurance package covering critical assets and personnel at federal airports nationwide.
Minister of Aviation and Aerospace Development, Festus Keyamo, said the approval aligns with a directive from the Secretary to the Government of the Federation, mandating the insurance of key government assets.
“This initiative was prompted by Mr. President because we cannot continue running airports and critical infrastructure without proper insurance coverage,” Keyamo stated.
He noted that many airport assets had remained uninsured for years, posing significant risks. The new insurance policy will protect both infrastructure and personnel under the Federal Airports Authority of Nigeria (FAAN).
The one-year contract, inclusive of a 7.5% VAT, will take effect once FAAN completes the premium payment.
Five Nigerian insurance firms were selected to provide coverage, with Leadway Assurance Company Ltd. serving as the lead underwriter. Other firms include Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc.
The government assured Nigerians that these infrastructure projects and the new insurance scheme would enhance national development and safety across key sectors.