Home News FG Imposes Two-Week On-Site Work Requirement Before Paying Road Contractors

FG Imposes Two-Week On-Site Work Requirement Before Paying Road Contractors

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David-Umahi-768x465
David-Umahi-768x465

The Federal Government has introduced a new policy mandating road contractors to work on project sites for a minimum of two weeks before receiving mobilisation fees.

The Minister of Works, David Umahi, disclosed this during an inspection of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, a critical infrastructure linking Nigeria’s northern and southern regions with neighbouring countries.

According to Umahi, the move is aimed at curbing the rampant abandonment of projects by ensuring only committed contractors handle road construction across the country. He described the policy as essential for sustainable project delivery.

The announcement comes as part of broader efforts by the government to tighten payment conditions for contractors. Recently, the ministry also enforced new rules requiring contractors to present active Advance Payment Guarantees (APG) and valid performance bonds before accessing funds.

An APG ensures that any advance payments are used strictly for the designated project, while a performance bond holds contractors accountable for completing the work as agreed.

Meanwhile, Umahi provided updates on the Abuja-Kaduna-Zaria-Kano road project, noting that the final section between Zaria and Kano would soon be approved and awarded.

He also addressed the termination of Julius Berger Nigeria Plc’s contract on the same corridor due to delays, although the company remains engaged in other federal projects, including the Bodo-Bonny Road and major bridge constructions in Lagos.

The ministry says these new measures aim to improve accountability, reduce abandoned projects, and raise the standard of road construction nationwide.

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