By Osehobo Ofure, Benin City
The Federal Government has adopted a new policy restricting advance payments to road contractors nationwide, requiring visible on-site work before disbursing funds beyond the initial 30 percent of contract value.
Minister for Works, Mr. David Umahi, announced this policy on Monday in Asaba, Delta State, while officially flagging off the construction of the 34km access road to the Second Nigeria Bridge connecting Delta and Anambra states.
“Let me assure you that 30 percent of the contract sum is already available, but we have not paid the contractor,” Umahi stated. “Our new policy is that when you are given a job, you must move to site. We have to see permanent work going on.”
The Minister emphasized stricter payment conditions to ensure project completion: “When we pay 30 percent, we will not pay again until 35 percent of the job is done. We will not allow contractors to continue to hold our money and delay the job.”
The 34km access road represents a critical infrastructure component, providing connectivity to the Second Nigeria Bridge—a major link between Delta and Anambra states that promises to enhance commercial and social interaction across the Niger Delta region.
According to Umahi, the primary challenge facing the new access road project is compensation for communities and individuals affected by right-of-way acquisitions. “The compensation will be a huge issue because in the past administration, the policy passed by the Federal Executive Council was that state governments should assist with compensation. What will delay us will be compensation,” he explained.
Despite these challenges, the Minister provided assurances that work would proceed in uncontested areas: “I will direct the contractors to work in areas where there will be no conflict. Enumeration is ongoing, and evaluation will be done by the state government.”
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