$35 Billion Needed to Revamp Nigeria’s Roads

Minister of Works, David Umahi, has revealed that the government is seeking $35 billion to kick-start the ambitious project of constructing concrete roads across the country.

Umahi shared this crucial information during a meeting with Minister of Steel Development, Shuaib Audu, at the ministry’s headquarters in Abuja. Emphasizing the need for coordination and cooperation, Umahi highlighted the significance of aligning efforts to execute the Federal Government’s action plans for national development.

In a statement on Tuesday, Chief Press Secretary to the minister, Orji Uchenna, unveiled a strategic plan involving the revival of the Ajaokuta steel company. The plan aims to source 16% of the steel material and 30% of the cement required for Nigeria’s concrete road construction from the struggling Ajaokuta steel plant.

“How do we reactivate the Ajaokuta Steel? We are going into the concrete road; in this concrete road, about 16% is from steel while 30% is cement. We need a lot of money to start, but we decided to face it, and God has given us an idea,” Umahi explained.

The ambitious project, requiring a substantial $35 billion investment, faces funding challenges if solely dependent on the federal government. Umahi emphasized the importance of a proactive approach, considering alternative funding options such as a partnership with commercial banks.

“We need about $35 billion to start. If we start waiting for FG, it might become difficult. We analyzed the Return on Investment and the profit we could have made; part of it will go to bank interest. We are considering a commercial bank partnership, but the Federal Executive Council has to endorse it. If this could be done, it means Mr. President is living up to his words, and this will be possible,” he said.