FG Introduces Two-Weeks-Site-Work Policy Before Paying Mobilisation Fees To Road Contractors
The Federal Government of Nigeria is implementing a new policy to ensure road project contractors are committed and capable before receiving mobilization fees. Minister of Works, Engr. David Umahi, announced that contractors must now commence work on-site for a minimum of two weeks before any mobilization payments are disbursed. This measure aims to guarantee contractors possess the capacity to deliver projects effectively and reduce the occurrence of abandoned road construction sites.
During an inspection of the ongoing Abuja-Kaduna-Zaria-Kano dual carriageway project, Umahi emphasized that this new requirement is crucial for sustainable project development and delivery. He highlighted that only contractors with a proven track record of quality and timely project completion would be considered for future engagements.
The Abuja-Kaduna-Zaria-Kano dual carriageway project, a critical infrastructure initiative linking the northern and southern regions of Nigeria, as well as neighboring countries like Cameroon, Niger, and Benin, is receiving close attention. Umahi mentioned that the final section of the project, Zaria-Kano, is slated for imminent approval and award.
Umahi expressed satisfaction with the progress made by Messrs Infiouest International (Nig.) Limited on Section I (Abuja-Kaduna) of the dual carriageway. He noted the company's commitment to quality work and timely delivery, even before receiving the initial 30 percent mobilization fee. Specifically, 40 kilometers of the dual carriageway will be constructed using rigid pavement (concrete).
The Minister also addressed the termination of Messrs Julius Berger (Nig.) Plc’s contract for unnecessarily delaying the project for many years but clarified that the company remains involved in other federal road projects, including the Bodo-Bonny Road and major bridge constructions in Lagos. He commended the new leadership of Julius Berger for aligning with the ministry's policies and adhering to professional engineering standards.
Umahi also cautioned resident engineers to maintain strict oversight, particularly regarding the composition of stone base used in construction. He specified that a standard stone base should comprise at least 70 percent stone and 30 percent dust to ensure the structural integrity of the roads.
In addition to the new mobilization fee policy, the Ministry of Works has introduced stricter payment conditions for contractors. These include providing an active Advance Payment Guarantee (APG) and a valid performance bond before receiving payments. The APG ensures that advanced funds are used exclusively for the intended project, while the performance bond guarantees project completion as agreed. These measures are intended to enhance accountability, minimize project abandonment, and improve the overall quality of road construction across Nigeria.
The Managing Director /Chief Executive Officer of Messrs Infiouest International (Nig.) Limited, Mr. Joseph Abougaoude, expressed his company's commitment to delivering the project on time. He affirmed the company's belief in President Bola Ahmed Tinubu's Renewed Hope administration and pledged to meet expectations.
Umahi also confirmed that the first section of the Lagos-Calabar coastal highway is expected to be completed before the end of the year.