Nigeria’s federal government has announced a new policy that will end payments for price variations on road projects, a move aimed at curbing corruption and ensuring timely completion of infrastructure developments. The decision, revealed by Minister of Works David Umahi, marks a significant shift in the country’s approach to managing public construction projects.
Minister Umahi, speaking at a press briefing in Abuja, stated that the government will no longer entertain requests for additional funds due to price fluctuations after contracts have been awarded. “We have decided that the era of price variation is over,” Umahi declared. “Contractors must adhere to the agreed prices, and we expect projects to be delivered within the stipulated timelines and budget.”
The new policy is part of broader efforts by the administration to improve transparency and efficiency in the execution of road projects. In the past, contractors have often requested additional payments citing increased costs of materials and labor, leading to significant budget overruns and project delays. This practice has been widely criticized for fostering inefficiency and corruption within the sector.
Under the new guidelines, contractors will be required to conduct thorough cost assessments before bidding for projects. The government will also enforce stricter oversight and accountability measures to ensure compliance with contract terms. Umahi emphasized that these steps are essential to restoring public trust and ensuring that infrastructure projects are completed to high standards. “Our goal is to ensure that every naira spent on road projects translates into tangible improvements in our infrastructure,” he said.
The decision has garnered mixed reactions from stakeholders in the construction industry. Some contractors have expressed concerns about the feasibility of absorbing cost increases over the life of a project. They argue that factors such as inflation, currency fluctuations, and global supply chain disruptions can significantly impact project costs. However, proponents of the policy believe it will encourage better planning and risk management among contractors.
Economic analysts have praised the government’s stance, noting that it aligns with international best practices for public procurement. By eliminating price variations, the government can achieve greater budgetary control and reduce the opportunities for financial malpractices. “This policy is a step in the right direction,” said Dr. Bisi Adewale, an economist at the University of Lagos. “It will promote efficiency and accountability, which are crucial for the sustainable development of our infrastructure.”
In addition to the new policy on price variations, the government is also prioritizing the completion of ongoing road projects across the country. Minister Umahi highlighted that many critical road projects have suffered from delays and cost escalations, affecting their overall impact on economic development. The government is committed to addressing these challenges and ensuring that road infrastructure supports the nation’s growth and connectivity goals.
The Ministry of Works has set up a task force to monitor and evaluate the progress of road projects, ensuring that contractors adhere to the new guidelines. This task force will have the authority to enforce penalties for non-compliance and recommend corrective actions where necessary. “We are serious about transforming our infrastructure landscape, and we will not tolerate any form of laxity or misconduct,” Umahi warned.
Public reaction to the policy has been largely positive, with many Nigerians hopeful that it will lead to improved road conditions and reduced travel times. Citizens have long been frustrated by the poor state of roads, which has hampered economic activities and posed safety risks. The new policy is seen as a potential game-changer in addressing these longstanding issues.
In conclusion, the Nigerian government’s decision to end payments for price variations on road projects represents a bold step towards enhancing efficiency and integrity in the construction sector. By enforcing strict adherence to contract terms and promoting better planning, the policy aims to ensure that road projects are completed on time and within budget. As Nigeria continues to invest in its infrastructure, these measures will be crucial in driving sustainable development and improving the quality of life for its citizens.
Source: tribuneonlineng.com
