President Tinubu's works minister has engaged in battles with different players in the sector, from civil servants in his ministry to contractors and members of the National Assembly.
President Bola Tinubu executed his presidential election campaign in 2023, promising a bold and audacious approach to addressing some of the major challenges facing the country, using his performance during his stint as governor of Lagos State as the yardstick.
"I have governed Lagos, I built a modern state that could be a country on its own. I increased the internally generated revenue from N600 million a month to N5 billion a month. That's a record, no one can brag about that," Mr Tinubu said during an interview with the BBC in London.
One major promise that many before him have failed to deliver on is the building of world-class infrastructure in the country.
According to the World Bank, Nigeria needs about $3 trillion in the next 30 years to bridge the infrastructure gap.
Although it is the smallest in terms of geographical size with 1,171 km², Lagos State is one of the most populous states in Nigeria and the richest in the country based on GDP and internally generated revenue. Now Mr Tinubu is governing a country that is 923,768 km², and also poorer on the basis of per capita income when compared to Lagos.
During the campaign, Mr Tinubu marketed himself as the candidate with a proven track record of financial engineering of a state. The campaigns are over, and the president has completed the first quarter of his term.
The question then is: Has the former Lagos State governor created a financial model to achieve the kind of infrastructure he promised? What is on the ground to give citizens the hope that he can deliver the promised "super infrastructure"?
Examining infrastructure under Tinubu's predecessor, Buhari
Mr Tinubu's predecessor, Muhammadu Buhari, came into power in 2015 on the wave of "change mantra". While many assessments of the eight years of Mr Buhari have delivered poor scores in many sectors, however, he was given credit for investment in some major infrastructural projects that several administrations before him had paid lip service to.
The former president initially planned to use the annual budget to fund major infrastructural projects in the country, but he soon found out that the National Assembly's interest was at variance with his, as his Minister of Works, Power and Housing, Babatunde Fashola, and the lawmakers were always at loggerheads over allocation of funds for major projects.
Consequently, Mr Buhari's government developed the Presidential Infrastructural Development Fund (PIDF), managed by the Nigerian Sovereign Investment Agency, to finance some of the major projects including the Lagos-Ibadan Expressway, the Second Niger Bridge and Abuja-Kaduna-Kano Highway.
Using other funding mechanisms like the Sukuk Bond, Infrastructure Tax Scheme, external loans and others, Mr Buhari's administration was able to commence major projects like the Lagos-Kano Standard Gauge Railway, rehabilitation of the Port-Harcourt-Maiduguri narrow gauge railway, Bodo-Bonny road, Kano-Katsina road, Kano-Maiduguri, East-West Road, Bauchi-Gombe Road and Loko-Oweto bridge.
Meanwhile, through the Highway Development Management Initiative, the then government also put 12 roads up for concessions. The roads are Benin-Asaba; Abuja-Lokoja; Kano-Katsina; Onitsha-Owerri-Aba; Shagamu-Benin; Abuja-Keffi-Akwanga; Kano-Maiduguri; Lokoja-Benin; Enugu-Port Harcourt; Ilorin-Jebba; Lagos-Abeokuta; and Lagos-Badagry.
Despite the investments by the Buhari's administration, major federal roads across the country have been described as death traps or outright unpassable due to their poor states. Major roads like the East-West road, Lagos-Abeokuta Road, Lokoja-Benin and others remain in terrible conditions.
In addition, the Buhari administration left behind a financially strained economy with a high debt burden after huge loans were taken to fund some of the projects, while billions have been gotten through the tax credit for infrastructure schemes.
Tinubu's promises on infrastructure and funding mechanism
In his manifesto, Mr Tinubu's plan for the development of national highway infrastructure was anchored on fiscal policy reform, particularly the reform of the budgetary process. His plan for the revamp of the nationwide highway system was very brief without details as he anchored everything on budgetary reform.
He promised to reform the budgetary process by detaching the budget from dollar value or oil production. According to the document, the current budget system "artificially restricts the government's fiscal latitude".
"A more efficient fiscal methodology would be to base our budgeting on the projected level of government spending which optimises growth and jobs without causing unacceptable levels of inflation," it said.
Mr Tinubu was derided by critics for the proposal, as some perceived it as a "plan to print money" to fund the budget. Seun Onigbinde, the founder of BudgIT, described the proposal as "dangerous" and a "highway to Venezuela."
"We cannot print our way to growth. Government is not an efficient distributor of resources and this means it won't optimise spending for results. The best bet is to offer lean government, ring-fence funding for infrastructure...." Mr Onigbinde had tweeted when the manifesto was released.
Nay, we have not seen this radical reform that Mr Tinubu promised in his manifesto.
The 2024 budget proposal used the same old budget parameters that had been used for budgets, and the ministry of works got less than N929 billion, including capital and recurrent expenditures.
Umahi in the Saddle: the review, redesign and controversies
Mr Tinubu picked former Governor of Ebonyi State, Dave Umahi, as the works minister. Although Mr Umahi is a former governor as his predecessor, Mr Fashola, the former is an engineer while the latter is a lawyer.
The incumbent minister has in the past 10 months been engaging in tough battles with different players in the sector, from civil servants in his ministry to contractors and members of the National Assembly.
Some months into his tenure, civil servants in the ministry of works locked the minister inside his office after he took action against late comers. He was subsequently forced to apologise to the civil servants.
In addition, the minister's preference for concrete technology in the construction of roads created a spat between the government and major construction companies in the country. For months, the government had to renegotiate with contractors to factor in the cost implication of this switch to concrete work.
"Concrete roads have a longer lifespan. They can withstand heavy traffic loads and low maintenance," the minister stated during the struggle over the adoption of technology. He, however, noted that the proposed shift is not for all roads.
The pushback was so enormous that the two committees of works in the National Assembly had to intervene through a public hearing on the implications of the switch. Amid the impasse, the prices of cement skyrocketed with speculations that the increment may be due to the anticipated surge in demand due to government policies.
Aside from the fight with the contractors, Mr Umahi has been critical of the design of major roads by the previous administration. For instance, Mr Umahi faulted the design of the Second Niger Bridge underpass, describing it as "defective". He equally claimed that the redesign saved the government N300 billion. The minister did not provide details to back up the claim.
Mr Umahi has shown that he is not the type to run from a fight. In the past year, the former governor has also engaged in a showdown with construction giant, Julius Berger Nigeria, over the construction of the Bodo Bonny road. In April, he issued a seven-day ultimatum for Berger to return to the site or the contract would be terminated.
The construction of roads in Nigeria is also not isolated from the current economic realities, particularly the inflationary pressure. In response to this, the government and contractors have had to engage in reviewing the cost of contracts.
For instance, the Abuja-Kaduna-Kano Expressway has been a subject of dispute between the ministry and the contractor, Julius Berger Nigeria. Mr Umahi in January stated that the government is considering partnering with the Dangote Industries under the tax scheme for the project.
Dealing with inherited policies, initiatives
The current administration inherited several road funding policies from the previous administration and despite the mix-messaging at the beginning of the administration, they have maintained these policies.
Tax Credit road scheme
In 2019, former President Buhari issued Executive Order 007 titled; "Road Infrastructure Development and Refurbishment Investment Tax Credit."
A committee, chaired by the Minister of Finance and Deputy Chairman, was responsible for administering the policy.
Under the scheme, companies are entitled to the project cost incurred in the construction or refurbishment of eligible roads as a credit against company income tax payable.
In line with the policy, the NNPC Limited got the approval for the reconstruction and rehabilitation of major roads with an estimated N661 billion expected to be spent on these roads.
Aside from the NNPC Limited, several other multinationals like the MTN, Transcorps Group, Access Bank, GZI Industries, Mainstream Energy Solutions, BUA Group and Nigeria LNG (NLNG) have also gotten the nod of the government to construct roads.
Dangote Industries constructed the Apapa-Oworonshoki-Ojota road and the Kabba-Obajana road under the scheme. Also, the company got the approval for five roads totalling 274.9 kilometres at the cost N309.9 billion to be advanced by Dangote Industries under the scheme.
However, the position of the Tinubu's administration on this scheme has been unclear. The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has consistently questioned the efficacy of the scheme, stating his displeasure at implementing the policy.
"It is not the duty of the FIRS or the NNPC Limited to be paying contractors. The ministry of works should be in line with its core mandate," Mr Adedeji stated during an appearance before a Senate Committee in February. "We should, in a nutshell, not continue in the wrong trajectory."
Despite the reservation by the FIRS boss over the scheme, Mr Umahi has maintained that the scheme is critical to the construction of the roads.
"We need the fund for completion of roads already started under the scheme," Mr Umahi told the same Senate committee in February.
The message of the government on this policy has been confusing in the last one year.
From PIDF to RHIDF
In March, President Tinubu announced the setting up of the Renewed Hope Infrastructure Development Fund (RHIDF), an entity that is similar to the Presidential Infrastructure Development Fund set up by President Buhari.
According to the government, the RHIDF is to absorb the PIDF and is expected to have a startup capital of N20 trillion to be sourced from multiple sources. The RHIDF targets the Pension Funds, Concessionary Loans, Insurance companies, sovereign wealth funds, private sector arms of multilateral development institutions, and bilateral private sector investors.
The inclusion of the Pension Fund has attracted the biggest criticism. Critics described it as a plan to dip hands into the pension fund "illegally".
Former Vice President Atiku Abubakar condemned the government for contemplating using the pension fund for infrastructure development.
However, the Minister of Finance, Wale Edun, explained that the government is not dipping hands into the fund, but encouraging PFA managers to invest in the RHIDF.
The government sees the RHIDF as the major pool for funding not just roads but rail, agriculture, ports, aviation and other critical infrastructure. The projects listed by the government include the Lagos-Calabar Coastal Road, the Sokoto-Badagry Road and Lagos-Kano and Eastern Rail lines.
Highway Development Management Initiative
The last administration launched the initiative for the management of major highways across the country. Mr Fashola in 2021 launched the initiative and identified 12 major highways for concession to investors.
The government subsequently selected investors to manage the roads under a PPP arrangement. The investors include Africa Finance Corporation/Mota Engel Consortium to handle the Shagamu-Benin and Lagos-Badagry road.
Others include Africa Plus Partners Consortium to handle Benin-Asaba and Lagos-Abeokuta; CCCC-CGC-Hdwaks Joint Venture: Ilorin-Jebba; Dafac Consortium: Kano-Shuari; and Enyimba Economic City Development Company Consortium: Enugu-Port Harcourt and Onitsha-Aba.
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However, the current administration has yet to conclude the plan. The minister set up a three-member committee to review the concession arrangement. This constant review of existing contracts and policies has become a pattern with Mr Umahi.
His spokesperson, Uchenna Orji, told PREMIUM TIMES via a phone interview that the administration is committed to the implementation of the policy but trying to sort out some few details around the agreement with the investors.
"Some regularisations are being made in terms of cost, standards, and ensuring that they comply with the best standard. By the grace of God, more investors will show more interest in other roads for concessioning. The HDMI is working," he said.
Mr Orji confirmed that the government has given the concession for that road to BUA Group and Dangote Industries under the tax credit scheme for the project.
Even so, experts have raised questions on the viability of the HMDI option. Muda Lawal, the CEO of the Centre for the Promotion of Private Enterprise, said the country has a poor history when it comes to tolling of roads. He stated that the government should instead revive the National Road Trust Fund Bill.
"The best option is to go back to the Road Fund concept. There was a Road Fund bill that was passed by the Ninth Assembly which President Buhari did not sign. The concept is to have a pool of funds that would be funded by a percentage of the petroleum tax," he said.
Controversial Coastal Road
The 700-kilometre Lagos-Calabar Coastal highway project is one of the most ambitious projects this government is embarking on. This project, estimated to cost N15 trillion, has been enmeshed in controversies.
There are question marks on the procurement process, lack of transparency, and alleged violation of several laws.
Furthermore, the demolition of some structures in the right of way raises the question of if the project is of priority.
While the project has been slammed by many, including Atiku and the former presidential candidate of the Labour Party, Peter Obi, the government has, however, maintained that the road presents a great opportunity to open up the coastal areas of Nigeria.
Amid the controversy, the administration is planning another 1,000km road from Badagry to Sokoto State, another signature project.
The small wins
Weeks ago, the contractor handling the 200 km Keffi-Akwanga-Lafia-Makurdi highway, China Harbour Engineering Company (CHEC), completed the dualisation project. The road was awarded by the preceding Buhari administration. Also, some major road projects awarded by previous administrations in the Nigerian capital, Abuja, were completed and commissioned.
The rehabilitation of the Third Mainland Bridge also earned the administration some applause after several interventions by the last administration did not produce muchtangible result.
Nevertheless, it is safe to say Nigerians have yet to see much of what President Tinubu promised them in terms of road infrastructure. Perhaps, they will do so in the remaining three years until 2027of his first term. Will he surpass his predecessors?
