How Inadequate Funding From MTN Led To Delay Of Enugu-Onitsha Road – Umahi

The Minister of Works, Dave Umahi, has opened up on the reason Mobile Telecommunication Network (MTN) stopped funding the rehabilitation of the Enugu-Onitsha dual carriageway under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

Umahi explained that MTN provided inconsistent and inadequate funding, leading to delays in the project.

He stated that despite interventions by the Federal Ministry of Works, the company failed to meet its financial commitments, prompting the government to take over the project’s execution.

The Minister made the clarification while responding to accusations from some All Progressives Congress (APC) opposition members, led by Osita Okechukwu, who alleged that he was responsible for the stalled rehabilitation of the road.

The Minister, however, dismissed the claims, stating that after a January 2025 meeting with Southeast National Assembly lawmakers and MTN representatives, key resolutions were reached:

MTN must commit to paying contractors ₦15 billion monthly for 10 months to fast-track the project, failing which the government would terminate MTN’s involvement.

Three contractors would be engaged to complete the remaining 79 kilometers of the road.

No further project cost variations or reviews would be entertained.

Umahi further stated that MTN failed to implement critical aspects of the project, such as flyovers, pedestrian bridges, and drainages, which were essential for smooth traffic flow.

“Since we took office in September 2023, I noticed there was no serious progress on this project. The Enugu-Onitsha road and the Enugu-Port Harcourt road are crucial to the Southeast, and we are prioritizing them,” Umahi stated.

He criticized the tax credit scheme, noting that President Bola Tinubu had also expressed dissatisfaction with it.

“MTN waits until it makes a profit before releasing funds, but by then, costs keep rising. As of today, the project requires an additional ₦145 billion due to price variations, and this approach is not sustainable,” he said

Umahi emphasized that the government would handle the Enugu-Onitsha road project as part of a broader review of tax credit-funded infrastructure across Nigeria, stressing that MTN’s case was not an isolated issue.