Why Nigeria Must Borrow to Arrest Roads Infrastructure Decay – Umahi
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The Minister of Works, Dave Umahi, has highlighted the urgent need for Nigeria to secure substantial loans to address the country’s deteriorating federal roads infrastructure.
Speaking on Friday after defending his ministry’s 2025 budget estimates before the Senate Committee on Works, Umahi emphasized that the annual provisions in the National Assembly Appropriation Bills are insufficient to tackle the extensive road projects required.
Umahi revealed that the country needs approximately N18 trillion to effectively manage its road infrastructure. He pointed out that President Bola Ahmed Tinubu inherited 2,064 projects worth N13 trillion in 2023, a figure that has since escalated due to market realities.
On its economic imperative, the Minister underscored the economic benefits of investing in road infrastructure, stating, “The roads, when fixed, are a catalyst to economic growth. It also eliminates hunger. This is because road infrastructure activities create a lot of economic activities.” He elaborated on the ripple effect such projects have on various sectors, including those selling construction materials and food vendors.
On the needed presidential support, Umahi defended President Tinubu’s efforts to secure loans for these projects, noting the President’s extensive experience and economic acumen.
“When the President, who is an economist, who has gone through all the segments of what we are passing through, by reason of his experiences, and is making efforts to borrow money to do these projects, then the public will be challenging his actions,” Umahi stated.
He called for public support, urging Nigerians to understand the necessity of borrowing to fund these critical infrastructure projects.
“He (President Bola Tinubu) cannot manufacture money. He has to be encouraged,” Umahi added.
Legislative Backing for Federal Roads Infrastructure
The Chairman of the Senate Committee on Works, Mpigi Barinada, echoed Umahi’s sentiments, acknowledging the massive financial requirements for road infrastructure.
Barinada stressed the need for innovative financing solutions to ensure the completion of these projects. “We can see that these projects are very enormous and we have to see how we can engage in other ways to get money to see how projects can be delivered to our people,” he said.
Public Perception
Addressing public skepticism, Umahi lamented the negative perception surrounding the borrowing plans. He urged Nigerians to view the loans as a necessary step towards national development rather than a financial burden. “You say he’s trying to steal your money.
That’s very discouraging. So road infrastructure cannot be fixed by mere yearly budgets. It has to be given plenty of attention,” Umahi concluded.
The call for borrowing to fund road infrastructure projects is not just a financial strategy but an economic imperative for Nigeria. However, the challenge has always been the corruption associated with loans and other funds for development as the money always went down the drain and siphoned into individual pockets of government officials.
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