The Federal Government has directed MTN to pay contractors handling Enugu-Onitsha road projects under its tax credit scheme N15Bn monthly in the next 10 months to fast-track completion or risk termination.
The resolution was reached during a meeting between the Minister of Works, Engr. David Umahi, and a delegation from the Anambra and Enugu caucus of the 10th National Assembly, who came to seek the federal government’s intervention on the completion of the construction of the Enugu-Onitsha Expressway, which was handled by RCC Ltd and funded by MTN under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The meeting, according to a statement by the Special Adviser to the Minister, Barr. Orji Uchenna Orji also resolved that the MTN hire three contractors to execute the 79km road within the original sum of N202bn.
He said, “It was resolved, among other things, that the Federal Ministry of Works would write the MTN to demand that MTN should commit irrevocably to pay contractors on the project a minimum of N15 billion every month for the next 10 months to enable them fast track the completion of the Enugu- Onitsha Expressway, failing which the Ministry would initiate termination process of the project.
“It was further resolved that MTN would need three contractors to do the 79 kilometres within the original contract sum of (MTN) N202 Billion.
“Furthermore, the remaining 72km of the road shall be awarded to other contractors through due process. MTN and RCC would be invited to bid, too.”
According to the statement, the Ministry lamented that MTN’s work on the project was not by the Tax Credit Executive Order.
“It was noted in the meeting that the delay on the job, which was due to poor funding and poor contract execution, has resulted in over 100% increase of the project cost, and to allow MTN more than 11 months on the job could further push the contract to increase by over 200% and this is unacceptable to the Federal Government,” he said.
During the meeting, Umahi assured the people of the South East of the administration of Bola Ahmed Tinubu’s commitment to transforming the transportation infrastructure in the South East, like every other Geopolitical Zone of the country.
He expressed deep sympathy over the lives that have been lost along the uncompleted sections of the Enugu-Onitsha Expressway, especially the recent incident of tanker explosion on the Ugwu Onyema axis of the road that killed scores of people.
He, however, stated that the people of the South East have every reason to have confidence in President Tinubu’s administration’s ability and will to address the road infrastructure deficits in the South East and other Geopolitical Zones of Nigeria.
He said, “Again, we should also be grateful to Mr. President. Since he became President, we’ve not heard about farmers’ and herders’ clashes in the South East. Mr President inherited 2,064 projects, totalling about N13 trillion, and today, those projects will be over N20 trillion because of the floating of the Naira and the removal of fuel subsidy. It’s nobody’s fault. But by his good heart and commitment to rewriting the story of this country, he will make Nigeria great again.”
The Minister reiterated the need for the South East to rise in gratitude to Mr President for prioritising intervention on roads and solving the marginalisation problem in the Region.
He said, “And so we want the National Assembly members, and of course, South East stakeholders, to please stand up and commend the President at all times because this is not a party thing. And I can beat my chest and say that irrespective of party, no other person will have the heart to do what Mr President is doing for the people of the South-East.”
Speaking during the visit, the leader of the delegation and Minority Whip of the Senate, Sen. Osita Ngwu, representing Enugu West, commended the Minister for the unprecedented scale of road construction, rehabilitation, and maintenance nationwide. However, he expressed worries that some of the projects were not receiving adequate funding to complete them in record time.
He referenced the Enugu—Onitsha Expressway, which was awarded to RCC and funded through the Tax credit. Today, some road sections have become a death trap for road users.
He stated that the delegation was compelled to visit the Minister because of the recent tanker mishap on the Ugwu Onyeama axis of the road in Enugu State.
He expressed the readiness of Federal lawmakers to offer necessary collaborations and cooperation to help tackle the challenges and bottlenecks faced by the Ministry in ensuring the completion of the said road.
“We appreciate that since the minister assumed office, the President has graciously approved several projects in the South East. We appreciate Mr. President, but we are worried that it is not just about putting projects across our zone. When these projects are not funded, it looks like a game. We are worried that some of the projects in the South East are not receiving funds to make progress so that we can benefit from such projects. And when it is not funded, it worries us,” he added.
On his part, the Senator representing Anambra Central, Sen. Victor Umeh, pleaded with the President to give accelerated intervention on funding to the roads in the Southeast so that the zone could fully benefit from the economic development agenda of the Renewed Hope administration.
He said, “While I joined my brother and colleague, Senator Osita Ngwu, in thanking the President for a worthy choice of Engr. Senator Dave Umahi, to be the Minister of Works, couldn’t have made a better choice based on his experience and what he could do as Governor of Ebonyi State through engineering infrastructure in that State.
He continues, “Through our oversight functions, we’ve been able to move around Nigeria in the various committees that we serve, and we’re able to see the great works the President is doing in Nigeria to transform our transportation infrastructure through ambitious road projects and railway projects across Nigeria. We are from South East Nigeria, and while we applaud the great strides the President is making to see that our roads are good. Our railway infrastructure is actualised, and we want to plead, on behalf of our people, that the South East should be given accelerated attention because of the infrastructure deficit we’ve had before he came on board.”
The meeting, according to the statement, had in attendance Senator Okey Ezea, representing Enugu North; Senator Kelvin Chukwu, representing Enugu East; Hon. Nnolim Nnaji, representing Nkanu East/Nkanu West Federal Constituency; Rt. Hon. Barr. Sunday Cyriacus Umeha, representing Eziagu/Udi Federal Constituency; Hon. Mark Chidi Obeta, representing Nsukka/Igbo Eze South Federal Constituency; Hon. Uchenna H. Okonkwo, representing Idemili North / Idemili South Federal Constituency, Hon. Engr. Paul Nnachi, representing Enugu East/ Isi Uzo Federal Constituency, Hon. Anayo Onwuegbu, representing Aninri Agwu/Oji River Federal Constituency, Hon. Princess Chinwe Nnabuife, representing Orumba North and South Federal Constituency, Hon. Paschal Agbodike, PhD, representing Ihiala Federal Constituency, Hon. Engr. Dominic Okafor, representing Aguata Federal Constituency; Hon. Gwachan Maureen, representing Oyi/Ayamelum Federal Constituency; Hon. Prof Lilian Orogbu, representing Awka North and South Federal Constituency; the General Manager of MTN, Ikechukwu Uchendu, the Manager Federal Affairs, Ifeoma Nkata, MTN Community Liaison, Engr Chris Okoye, Project Mgt, Obioha Dike, Project Mgt, Tochukwu Onuorah, the Legal Adviser, C. J Caleb and Simisola Ogala, and Federal Affairs, Halima Nura as well as the Key Directors of the Ministry including; the Director of Highways Construction and Rehabilitation, Engr. C. A Ogbuagu, the Director of Highways Bridge and Design, Engr. B. U Obioha, and the Acting Director of Highways Road and Design, Engr M. Saidu.
