The Federal Government has mandated that road contractors must be on-site for at least two weeks before receiving mobilization fees.
A statement released on the Ministry’s website on Sunday revealed that the Minister of Works, David Umahi, made the announcement during an inspection of the Abuja-Kaduna-Zaria-Kano Dual Carriageway. Umahi explained that the new policy is designed to ensure that only committed contractors are involved in Nigeria’s road projects, reducing the frequency of abandoned construction sites.
“He emphasized that the Ministry’s decision to require contractors to be on-site and actively working for at least two weeks before mobilization fees are paid is crucial for sustainable project development and timely delivery,” the statement read in part.
This requirement follows the Federal Government’s implementation of stricter payment conditions for contractors. The statement also provided updates on the Abuja-Kaduna-Zaria-Kano Dual Carriageway, an important economic corridor connecting Nigeria’s northern and southern regions, as well as neighboring countries like Cameroon, Niger, and Benin. Umahi shared that the final section of the project, the Zaria-Kano stretch, would soon be approved and awarded.
The Minister also addressed the recent termination of Julius Berger Nigeria Plc’s contract on the project, citing delays as the reason for the decision. However, he clarified that the company continues to be engaged in other federal road projects, including the Bodo-Bonny Road and significant bridge construction in Lagos.
This move to enforce the two-week mobilization requirement aligns with the Federal Government’s introduction of more stringent payment conditions for contractors. Umahi also unveiled a new policy requiring contractors to present an active Advance Payment Guarantee (APG) and a valid performance bond before receiving payments from the Ministry of Works.
The APG ensures that funds advanced to contractors are used exclusively for the project, while the performance bond guarantees the contractor’s commitment to completing the project as agreed. These initiatives aim to strengthen accountability, reduce the risk of project abandonment, and improve the overall quality of road construction across Nigeria.
