The Federal Government has launched a transformative policy aimed at improving accountability and ensuring quality in road construction projects nationwide. Announced by the Minister of Works, David Umahi, on Sunday, February 23, 2025, during the Lagos-Calabar Coastal Highway Stakeholders’ Meeting in Lagos, the new directive mandates contractors to provide an active Advance Payment Guarantee (APG) and a performing performance bond before receiving payments from the Ministry of Works. This move is set to reshape how infrastructure projects are funded and executed across the country.
Strengthening Financial Oversight in Road Projects
Under the newly introduced policy, an Advance Payment Guarantee (APG) will serve as a safeguard, ensuring that funds disbursed to contractors are strictly utilized for their intended projects. Meanwhile, the performance bond will act as a contractual assurance that contractors complete their work according to agreed standards and timelines. Speaking at the stakeholders’ meeting, Umahi emphasized that these measures are designed to protect public funds and guarantee that contractors remain committed to delivering durable infrastructure.
“This policy ensures that if a contractor fails to address defects within the liability period, we will have the resources to carry out the repairs,” Umahi explained. He added that the requirement for both an APG and a performance bond will apply to all ongoing and future projects overseen by the Ministry of Works, signaling a zero-tolerance approach to substandard work and financial mismanagement.
Addressing Challenges on the Lagos-Ibadan Expressway
The minister used the occasion to provide updates on the Lagos-Ibadan Expressway, a critical infrastructure project divided into two main phases with multiple sections. Phase 1 includes Section 1, a 43-kilometer stretch with three dualized lanes constructed by Julius Berger. While this section experienced minor failures, Umahi noted that the issues were promptly resolved without significant delays.
In contrast, Section 2, handled by RCC, has faced more substantial challenges, particularly on the Ibadan-bound lane, where significant failures have necessitated ongoing repairs. Umahi disclosed that RCC has been instructed to engage in further discussions to address these setbacks. Approximately 8.5 kilometers of this section remain incomplete, with repairs expected to wrap up by April 2025 and commissioning slated for May 2025.
Progress and Plans for Phase 2
Phase 2 of the Lagos-Ibadan Expressway project involves completing flyover heads at key locations, including the RCCG axis, Wawa axis, Ogun Bridge, and Arepo Bridge. This phase also encompasses a 12-kilometer dual carriage stretch at Sagamu-Iperu, currently under construction with rigid pavement technology for enhanced durability. Additionally, a 48-kilometer stretch extending to Ore is scheduled for rework, with the contract expected to be awarded by March 2025. Umahi highlighted that the completion of this phase will mark the full realization of the Lagos-Ibadan Expressway project up to the Ibadan axis.
A Commitment to Quality and Timely Delivery
The introduction of the new payment policy comes amid growing concerns over the quality of road infrastructure in Nigeria, with the Lagos-Ibadan Expressway serving as a high-profile example of both successes and challenges. By tying payments to stringent financial guarantees, the Ministry of Works aims to hold contractors accountable for delivering projects that meet national standards. Umahi’s announcement underscores the government’s broader commitment to improving Nigeria’s road network, a vital artery for economic growth and connectivity.
As the policy takes effect, stakeholders in the construction sector will be closely watching its implementation, particularly on high-stakes projects like the Lagos-Ibadan Expressway and the Lagos-Calabar Coastal Highway. With completion deadlines looming and significant public investment at stake, the Federal Government’s latest move could set a new benchmark for infrastructure development in Nigeria.
