As Nigeria grapples with the challenges of delivering sustainable infrastructure in the face of tightening public finances, the Tinubu administration has launched a sweeping shift in the country’s road construction strategy, prioritising completion, discipline, and alternative funding.
When President Bola Tinubu assumed office, he inherited 2,064 road projects valued at N13 trillion. Less than two years later, that figure has surged past N20 trillion, driven by inflationary pressures, exchange rate depreciation, and the removal of fuel subsidies. In response, the Federal Ministry of Works has announced a pause on awarding new road contracts through 2025, choosing instead to focus on delivering existing projects especially the administration’s flagship economic corridors.
Departing from the piecemeal approach of the past, the Ministry has adopted a nationwide, simultaneous execution model. Projects like the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Superhighway are being pursued concurrently, a significant shift aimed at fast-tracking delivery.
Minister for works, David Umahi has played a central role in enforcing performance. Through continuous site visits, project audits, and contract reviews, the Ministry has terminated multiple underperforming contracts. Among the most notable was the controversial Abuja-Kaduna-Zaria-Kano Expressway, previously managed by Julius Berger, which was cancelled in November 2024 after the company refused to revise its terms or resume work.
Several other long-standing projects have faced similar scrutiny. Contracts on the Kano-Maiduguri Road, dating back to 2007, and multiple sections of the Obajana–Benin Highway, first awarded in 2012, were revoked due to years of stalling and non-performance. Affected contractors were given ultimatums to resume or face termination, and fresh audits are now underway to reassign critical routes.
Even high-profile projects like the Bodo–Bonny Road in Rivers State and the East-West Road in the South-South have drawn government ire. Delays and cost overruns, some rising by over 200%, have triggered performance reviews and warnings, with Minister Umahi declaring a zero-tolerance policy going forward: “No more excuses. Contracts without results will be terminated.”
Part of the Ministry’s new playbook includes a strategic shift towards concrete paving in flood-prone and high-traffic areas. Traditional asphalt has repeatedly failed in areas like Delta and Kogi, prompting a pivot to more durable solutions. Projects like the Abuja–Lokoja and Kaduna–Sokoto highways now feature reinforced concrete sections, with support from local cement producers such as BUA Group.
The government insists that while asphalt is not banned, contractors must meet strict engineering standards and cost controls cement price hikes, for example, led to swift negotiations to avoid budget overruns. New technical standards also now require a 70% stone base for all federally funded roads.
The Ministry has scrapped the long-standing practice of disbursing mobilisation fees upfront. Contractors must now demonstrate 30 days of tangible progress to access funding. Variations in pricing are also under tighter control, with any adjustments requiring a detailed engineering assessment ending the era of unchecked cost inflation under previous administrations.
Legacy contractors previously shielded from consequences are now being held to account. While Julius Berger continues work on some federal projects, its removal from the Abuja-Kano Expressway signaled a firm end to special treatment.
With public funds increasingly stretched, the Federal Government has deepened its reliance on private capital through two primary channels: the Infrastructure Tax Credit Scheme and the Highway Development and Management Initiative (HDMI). Under the tax credit model, major players like Dangote Group, BUA, and NLNG are executing 21 road projects valued at over N1.3 trillion.
The Nigerian National Petroleum Company Limited (NNPC), through two phases of its own tax credit scheme, is financing more than 6,000 km of roads. However, funding shortfalls and inflation have created a N3.56 trillion gap, the government hopes to bridge through tighter project monitoring and private investment incentives.
Meanwhile, HDMI, which enables private firms to build, operate, and toll highways for up to 25 years, has been relaunched under a new results-based model. Projects such as Lagos–Abeokuta and Sagamu–Benin are set for redevelopment under this framework, promising shorter travel times and improved security.
In light of criticisms suggesting lopsided distribution of federal road projects, the Ministry of Works has released project data to refute the claims. Of the over 2,700 km under the Renewed Hope Legacy Projects, 52% are in the North and 48% in the South.
A similar pattern is evident in the Sukuk bond-funded projects, emergency repairs, and the tax credit scheme. The Ministry maintains that project locations are selected based on engineering priority and national economic impact, not politics.
As the government targets 150 km of motorable roads per state in 2024, only a fraction of the required N15 trillion budget has been made available. Nonetheless, with enforcement tightened, private participation growing, and a renewed emphasis on engineering standards, Nigeria’s road sector may be on the brink of a long-overdue transformation.
Minister Umahi’s leadership, defined by technical expertise and uncompromising accountability, is driving this shift. While challenges remain—from contractor bottlenecks to inflationary headwinds—the policy direction is clear: deliver or depart.
