The Federal Government has mandated that road contractors will work on-site for at least two weeks before receiving mobilisation fees.
A statement published on the ministry’s website on Sunday, said the Minister of Works, David Umahi, announced this during an inspection of the Abuja-Kaduna-Zaria-Kano Dual Carriageway.
Umahi explained that the policy aims to ensure that only committed contractors handle Nigeria’s road projects, thereby reducing cases of abandoned construction sites.
“He stressed that the Ministry’s decision that every contractor must be at the site and working for at least two weeks before the mobilisation fee is paid, is the way to go for sustainable project development and delivery,” the statement read in part.
The announcement that road contractors must mobilise to the site at least two weeks before receiving mobilisation fees, follows the Federal Government’s introduction of stricter payment conditions for contractors.
Additionally, the statement revealed that Umahi provided updates on the Abuja-Kaduna-Zaria-Kano Dual Carriageway, a key economic corridor linking Nigeria’s northern and southern regions, as well as neighbouring countries like Cameroon, Niger, and Benin.
He disclosed that the final section of the project, Zaria-Kano, would soon be approved and awarded.
The Works Minister also addressed the recent termination of Julius Berger Nigeria Plc’s contract on the project, citing delays as the reason.
However, he clarified that the company remained engaged in other federal road projects, including the Bodo-Bonny Road and major bridge construction in Lagos.
The announcement that road contractors must mobilise to the site at least two weeks before receiving mobilisation fees follows the Federal Government’s introduction of stricter payment conditions for contractors.
Umahi, recently unveiled a new policy requiring contractors to provide an active Advance Payment Guarantee (APG) and a valid performance bond before receiving payments from the Ministry of Works.
An APG ensures that funds advanced to contractors are used solely for the project, while a performance bond guarantees that the contractor will complete the project as agreed.
These measures aim to enhance accountability, minimise project abandonment, and improve the quality of road construction across Nigeria.
