INFLATION: Contractors cite naira value, poor funding for refusal to return to site

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Contractors handling federal government road projects are insisting that unless something is done about the depreciating value of the naira and continued delay in adequate funding of road projects, they will not return to the site as ordered by Minister of Works, Senator Dave Umahi.

The contractors are also pleading with the federal government to allow for contract variation where cogent and verifiable reasons are adduced because of inflation, since the federal government is owing contractors heavily.

These were some of the positions they put forward after a ‘return to site” order by the works minister, explaining that “sincere dialogue to resolve the issue of indebtedness would help avert disagreements that may dog the Tinubu administration’s plans to deliver good roads to Nigerians.” But coming on the heels of Umahi’s charge to the contractors to return to the site, Minister of the Federal Capital Territory, FCT, Nyesom Wike, also ordered contractors handling the rehabilitation of roads in the capital city and other civil engineering services to return to the site, declaring that he would not condone variations to their contract sums, accusing contractors of colluding with officers of the FCT to use variations to jerk the value of their contracts.

According to the contractors, “it is unjust, unfair and legally wrong for the government to owe the road contractors for several years, and then turn around to accuse them of economic sabotage.

 

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