THE Federal Government has introduced a new policy requiring road contractors to work on-site for at least two weeks before receiving mobilisation fees.
The Minister of Works David Umahi announced this new policy during an inspection of the Abuja-Kaduna-Zaria-Kano Dual Carriageway.
This information was detailed in a statement published today on the Ministry of Works website.
He explained that the measure aims to ensure that only serious contractors handle Nigeria’s road projects, thereby reducing cases of abandoned construction sites.
“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.
The policy follows the Federal Government’s recent introduction of stricter payment conditions for contractors.
During the inspection, Umahi also provided updates on the Abuja-Kaduna-Zaria-Kano Dual Carriageway, a key economic corridor connecting 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.
Addressing the recent termination of Julius Berger Nigeria Plc’s contract for the project, Umahi cited delays as the reason.
However, he clarified that the company is still involved in other federal road projects, including the Bodo-Bonny Road and major bridge construction in Lagos.
Additionally, Umahi reiterated the government’s new payment conditions, which require contractors to provide an active Advance Payment Guarantee (APG) and a valid performance bond before receiving funds.
The APG will ensure that advanced payments are used strictly for the project, while the performance bond guarantees that the contractor will complete the work as agreed.
These measures, according to the Works Ministry, are designed to enhance accountability, minimise project abandonment, and improve the quality of road construction across Nigeria.