Works Minister Presents ₦3.244trn 2026 Budget Proposal To NASS

Minister of Works, Senator Engr. David Nweze Umahi, CON, FNSE, FNATE, on Wednesday appeared before the Joint Senate and House of Representatives Committees on Works at the National Assembly, (NASS) to defend the Federal Ministry of Works’ proposed ₦3.244 trillion capital budget for 2026.

The minister highlighted that Nigeria’s road sector is undergoing a structural overhaul driven by durability, economic corridors, long-term national interest and outlined the scale of inherited liabilities, escalating project costs, and the administration’s funding strategy for ongoing and flagship highway projects.

He disclosed that as of May 29, 2023, when President Bola Ahmed Tinubu assumed office, the administration inherited 2,064 ongoing road projects valued at about ₦13 trillion.

The Minister emphasized that following the removal of fuel subsidy and the floating of the naira, construction costs rose sharply, pushing the total value of ongoing projects to approximately ₦16.9 trillion as of December 2025, excluding the President’s legacy projects and private tax credit schemes.

Umahi informed the lawmakers that it is impossible to complete ₦16.9 trillion worth of projects in one budget cycle, adding “What we have done is re-scoping, re-phasing and prioritisation.”

The Ministry, according to him, has adopted a structured approach that focuses on economic corridors and high-impact roads rather than spreading resources thinly across numerous small projects.

Speaking on the performance of the 2025 budget, Umahi announced that capital releases so far is ₦210.318 billion, representing roughly 9.7 per cent performance.

He pointed out that certified contractor claims for works executed between 2024 and 2025 amounted to about ₦2.2 trillion, emphasizing a significant funding gap.

Umahi told the committees that President Tinubu had constituted a committee chaired by the Vice President to review liabilities across Ministries, Departments and Agencies (MDAs), including those in the works sector.

The Minister also confirmed that the Nigerian National Petroleum Company (NNPC) had withdrawn from certain tax credit-funded road projects, creating an estimated ₦7 trillion funding gap now being managed by the Ministry.

The Minister explained that about 70 per cent of the 2025 allocation — approximately ₦1.687 trillion — is being rolled over into 2026 to sustain ongoing projects, hence the ₦3.244 trillion capital proposal for 2026.

Additionally, he said, ₦797 billion in special presidential funding has been distributed across the six geopolitical zones to support priority corridors, including:

₦160 billion for the South-West

₦120 billion for the South-South

₦105 billion for the South-East

₦120 billion for the North-West

₦105.2 billion for the North-East

Umahi, while dismissing suggestions that zonal spreads were politically motivated, maintained that the allocations were driven by economic and traffic considerations rather than political balancing, adding “As lawmakers and ministers, we should think about our nation.”

Umahi’s significant portion of the presentation focused on President Tinubu’s four flagship legacy projects, which he described as “investment projects” rather than conventional road contracts.

He clarified that under the financing model for the legacy corridors, the Federal Government provides 30 per cent counterpart funding while syndicated loans cover 70 per cent at interest rates below six per cent.

He argued that “These are not just road projects; they are investment projects,” adding that the corridors would unlock trade, agriculture, solid minerals and regional integration.

The Minister’s defence also emphasized the administration’s shift from asphalt to concrete pavement on key highways.

He informed the committees that President Tinubu had personally directed the adoption of concrete on strategic corridors for durability, adding that concrete roads could last between 50 and 100 years when properly executed.

He cited the Abuja–Kaduna–Zaria–Kano corridor, saying that: “Section One (180km), valued at ₦252 billion, has received 15 per cent payment and is nearing commissioning. Section Two (104km), valued at ₦502 billion, has received 50 per cent payment and is targeted for completion by November. Tell me in the history of this country, apart from Hitech, any contractor that completed 180 kilometres in 12 months?” he asked.

He mentioned that the Ministry is strictly monitoring specifications and quality control, maintaining that durability and lifecycle cost are now central to Nigeria’s road construction philosophy.

Speaking on concerns about road longevity, Umahi assured the committees that weighbridges would be reintroduced under the Highway Development and Management Initiative (HDMI) to control axle loads and protect federal highways from premature deterioration.

He said “Yes, the weighbridges — we are going to approve it,” stressing that structured private-sector participation would support enforcement and sustainability.

Umahi in his presentation, outlined the 2026 proposal as a balancing act between inherited obligations, new strategic investments and fiscal realities.

Minister argued that with the ₦16.9 trillion in ongoing commitments and rising construction costs, the ₦3.244 trillion request represents a pragmatic attempt to prevent project abandonment while advancing transformative corridors.

Umahi reiterated that the Ministry’s direction reflects a deliberate national development agenda, adding “There is no better representation of the vision of the President than the President himself.”

The 2026 ministry of works budget defence underlined the scale of ambition and pressure surrounding Nigeria’s road sector whereby engineering choices, financing models and political accountability now crisscross in one of the largest infrastructure programmes of the country.

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