Contractors Reject FG’s Return-to-Site Order, Insist On Payment, Review

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An overwhelming number of contractors handling federal government road projects have opposed a recent directive to return to site without reviewing their contract sums, saying they are not to blame for inflation and fall in the value of the Naira.

They also lauded the House of Representatives for suspending moves by Works Minister, Engr. Dave Umahi, to adopt concrete for road construction, describing concrete roads as “not feasible in the light of Nigeria’s economic realities.”

Engr. Umahi’s colleague in the Federal Capital Territory (FCT) Ministry, ex-Rivers State Governor Nyesom Wike had recently told contractors handling the rehabilitation of roads in the capital city and other civil engineering services that he would not condone variations to their contract sums.

He accused contractors of colluding with officers of the FCT to use variations to scale up the value of their contracts.

Sources close to the contractors told TheNewDiplomat on the condition of anonymity that the positions of Wike and Umahi on road contracts portrayed them as insensitive economic saboteurs.

According to the sources that feared victimization, it was morally and legally wrong for the government to owe the road contractors for several years, and then turn around to accuse them of economic sabotage.

According to the sources, it was better for the ministers to dialogue with the contractors in order to avert a situation where disagreements would sabotage President Bola Tinubu’s promise to deliver good roads as part of his “Renewed Hope” agenda.

Observed a road construction sector source,”Honourable Ministers Nyesom Wike and Dave Umahi were governors of Rivers and Ebonyi States respectively from 2007- 2023. They both know the prices of goods and services in 2015, and what they are now. They know how much they bought their official SUVs then and their current prices.

“Both men know how much diesel and petrol was sold for in 2015, and the current prices. They know how much sand, chippings, asphalt, and even the cost of moving goods in 2015 vis-a-vis now. Telling a man who secured a contract in 2015 that he must return to site and complete the job at 2015 price is not only unreasonable, but wicked.

“It is hard to believe that all the contractors are dubious. There’s no contractor that won’t love for Nigerians to praise his company for delivering on good roads. Unfortunately, road construction companies do not manufacture the equipment they use for work.

“Even if they do, they need to fuel their equipment, pay their workers, and buy things like asphalt and cement. All these things require plenty of money and their prices keep changing.”

Another source told TheNewDiplomat that the blame for the delays in executing federal government road contracts should not be heaped at the feet of contractors, but on poor funding by successive governments at the federal level.

He recalled that the immediate past FCTA minister Mohammed Bello was particularly known for delaying several payments.

Yet another source described as “self-serving” Umahi’s proposal to use concrete instead of asphalt, saying “several countries that move heavy loads on roads, including the United States and Brazil, still rely heavily on roads built with asphalt.”

He further stated that, “The reason they call Wike ‘Mr. Projects’ is because, as Rivers Governor, he changed the procurement process to allow contractors be paid as much as 75 percent upfront. With such level of funding, it was impossible to have abandoned road projects in Rivers State.

“As governor, Dave Umahi’s approach was direct labour. Under his watch, Ebonyi State bought several construction equipment with which his administration was able to deliver good roads.”

He added that “We shouldn’t forget that such road construction projects in Rivers and Ebonyi States took a heavy financial toll on other facets of government such as education.

“Comparing the performance of both former governors on roads to what obtains at the federal government level is like comparing apples and oranges. There was a time Umahi’s predecessor, Mr. Raji Fashola disclosed that the federal government was owing road contractors over N10 trillion. How are they supposed to perform under such a heavy debt burden?”

He stated that, “At least, since former Works Minister Fashola disclosed that federal government has been unable to meet it’s financial obligations to contractors, the least what Wike and Umahi should have done was to have dialogued with the contractors on how to deliver good roads to Nigerians at reasonable prices, not to be threatening and blackmailing them,” they declared.

But apparently breaking ranks with other road contractors, Coan West Africa Ltd, a major road construction company which has several ongoing works in the federal capital territory Abuja, the company has mobilised to site in compliance with the directive of the minister of Federal Capital Territory Nyesom Wike.

Mr. Domic Mgbechi, COAN’s public Relations officer told THISDAY that, “We have mobilised back to site in compliance with the directive of the Minister of the Federal Capital Territory.

“Despite undeniable challenges, we are not working to be selfish. We are working to help Nigerians. That’s our position. We want to show our quality; we want to work. When they see our work, whatever they want to do they should do.”

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