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FEDERAL REPUBLIC OF NIGERIA FEDERAL MINISTRY OF POWER, WORKS & HOUSING
HEADQUATERS, ABUJA
“THE PUBLIC WORKS MINISTRIES: ORGANISATION, OPERATION, POTENTIAL
STUDIES AND IMPLEMENTATION. ANNUAL INVESTMENT BUDGETS (LAST FIVE
(5) YEARS) ACHIEVEMENTS OF THE PAST TWENTY (20) YEARS, FUTURE
PROSPECTS”
REPORT PRESENTED AT THE HIGHWAY TRAINING PROGRAMME TO BE HELD
AT
NIAMEY, NIGER REPUBLIC FROM 3RD – 9TH JULY, 2017
ORGANISED BY TRANS-SAHARA ROAD LIAISON COMMITTEE (TRLC)
SUBMITTED BY:
MUHAMMAD, HALLIRU ([email protected])
&
SEBASTIAN-DAUDA, MARYAMU ([email protected])
JULY, 2017
2
TABLE OF CONTENTS
1.0 STUDY’S AIM AND OBJECTIVES ................................................................................................... 3
2.0 HISTORY OF ROADS CONSTRUCTION IN NIGERIA (HIGHWAYS) UNDER FEDERAL MINISTRY OF
POWER, WORKS & HOUSING (WORKS SECTOR) ..................................................................................... 4
2.1 Brief History of Highway Development in Nigeria ...................................................................... 4
2.2 Past Achievements in Road Development .............................................................................. 5
2.3 Pre-Civil War Era (1960-1970) ............................................................................................... 5
2.4 Oil Boom Era (1970-1999) ..................................................................................................... 5
2.5 Civilian Administration {1999 to date (2017)} ...................................................................... 6
3.0 HISTORICAL BACKGROUND OF FEDERAL MINISTRY OF POWER, WORKS & HOUSING (WORKS
SECTOR) ................................................................................................................................................... 7
3.1 EMERGENCE OF THE MINISTRY .................................................................................................. 7
4.0 MANDATE, FUNCTIONS AND ORGANISATIONAL STRUCTURE OF THE FEDERAL MINISTRY OF
POWER, WORKS AND HOUSING (WORKS SECTOR) ................................................................................ 8
4.1 VISION AND MISSION STATEMENTS .................................................................................... 8
4.1.1 VISION STATEMENT ........................................................................................................... 8
4.1.2 MISSION STATEMENT ........................................................................................................ 8
4.2 STRUCTURE OF THE WORKS SECTOR ................................................................................................ 8
5.0 ROLE OF FINANCIAL INSTITUTIONS IN THE DEVELOPMENT OF THE ROAD NETWORK IN NIGERIA 10
5.1 INTRODUCTION ............................................................................................................................... 10
5.2 ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS AND OTHER MULTI-LATERAL AGENCIES
THROUGH ROAD SECTOR DEVELOPMENT TEAM (RSDT) ...................................................................... 10
5.3 FINANCING THE ABIDJAN-LAGOS CORRIDOR ................................................................................. 11
5.4 TRANS-SAHARAN ROADS LIAISON COMMITTEE (TRLC) .................................................................. 12
6.0 ANALYSIS ON THE MINISTRY’S ANNUAL INVESTMENT BUDGET IN THE LAST FIVE (5) YEARS AND
ACHIEVEMENTS MADE IN THE PAST TWENTY (20) YEARS .................................................................... 13
6.1 MINISTRY’S ANNUAL INVESTMENT BUDGET IN THE LAST FIVE (5) YEARS ..................................... 13
6.2 MINISTRY’S ACHIEVEMENTS OVER THE PAST TWENTY (20) YEARS ................................................ 14
7.0 FUTURE PROSPECTS ........................................................................................................................ 16
.............................................................................................................................................................. 16
8.0 CONCLUSION ................................................................................................................................... 17
REFERENCES ....................................................................................................................................... 18
3
1.0 STUDY’S AIM AND OBJECTIVES
Road Sector is vital to the socio-economic development of any nation. The aim of this study
is to explore the history and role of the Federal Ministry of Power, Works and Housing in
Nigeria, especially the works sector in particular towards developing the socio-economic
sector of the country through development of highway infrastructural facilities in the country.
The study will discover organisation, operation, potential studies and implementation of the
works sector of the Ministry, and to analyse its annual investment budgets for the last five (5)
years and its achievements in the past twenty (20) years. Lastly, the study will highlight on
the Ministry’s future prospects.
To achieve the afore-mentioned aim of this study, the following objectives are set in place:
i. to provide a brief history of the Federal Ministry of Power, Works & Housing (Works
Sector) in Nigeria;
ii. to explore on the history of roads construction in Nigeria (Highways) under Federal
Ministry of Power, Works & Housing (Works Sector);
iii. to identify specific/institutional changes in the Public Works sector;
iv. to provide organisational structure and functions of the Works sector of the Ministry;
v. to discover the implementation on road construction under the Works Section of the
Ministry;
vi. to highlights on the role of Financial Institutions in the development of the road
network in Nigeria;
vii. to analyse the Ministry’s annual investment budget in the last five (5) years and
achievements made in the past twenty (20) years.
viii. to proffer recommendations towards future prospects in the works sector of the
Ministry.
4
Figure 1: Map of Federal Road Network of Nigeria
Source: Activities of Highways Departments, FMW Nigeria, June 2015
2.0 HISTORY OF ROADS CONSTRUCTION IN NIGERIA (HIGHWAYS)
UNDER FEDERAL MINISTRY OF POWER, WORKS & HOUSING (WORKS
SECTOR)
2.1 Brief History of Highway Development in Nigeria
Nigeria has over the years made tremendous strides in the area of Road Development, when
the first bituminous-surfaced road linking Lagos and Abeokuta was constructed in 1926. By
1945 the country had a total of 13,240 kilometres of road classified intro Trunk Roads A &
B. Aided by the discovery of petroleum, Nigeria invested over N8.0 billion between 1970
and 1975 on Road Rehabilitation and the upgrading of the country’s road network. The
upgrading involved reconstructing single-lane carriageways to two-lane carriageways and
construction of earth roads to bituminous all-weather roads. From 1976 to 1998, a total sum
of about N25bn was further invested in the Federal road network which stood at 16,000km by
the end of 1973. Based on the recommendation of the National Council of Works, additional
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A10 ROUTE NUMBER F 100
A3
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A3
A 4-5
A 4
A 4
A 4-7
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A 4
A 13
A 13
A 4
A 13
A4 - 6
A 13
A 4
A 13
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A 12
A 344
A 12
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A 8
A 4
A 4
A 12
A 3
A 345
A 3
A 345
A 237
A 3
A 237
A 236
A 237
A 9
A 2
A 9
A 9
A 2
A 236
A 126
A 126
A 126
A 1
A 1
A 1
A 11
A 235
A 125
A 2
A 125
A 10
A 124
A 124
A 1
A 1
A 123
A 2
A 3 A 234
A 3
A 7
A 7
A 1
A 5
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A 121 A 122
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A 342
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A 3
A 343
A 343
A 4
A 4-2
A 4-2
A 4
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A 342
A 344
A 3
A 233
A 233 A 2
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F259
F257
F134
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F128
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F253
F254
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F256
F255-1
F255
F252-1
F252
F250
F250
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F122
F122
F123
F242 F121
F258
F242
F237
F120
F130
2 F128-2
F253
F128
F128
F249
F131
F131
F244
F128-1
F128
F248 F249
F251
F129
F245
F246
F247
F245
F242
F242
F241
F241
F125 F125
F124
F124
F238
F238
F127
F124
F238
F139
F238
F239
F239
F117
F121
F119
F117
F116
F116
F225
F226
F113 F234 F236
F113
F112
F234
F234
F119
F119
F119
F220
F221
F117
F117
F117
F215
F215
F215
F215
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F114
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ABAOMEGE
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5
16,000km of State roads were, by October 1974, taken over from the State Governments and
designated Trunk F roads, bringing the total Federal road network to about 32,000km. Today
it is estimated that the country’s Road Network covers about 200,000 kilometres broken
down according to ownership as follows:
(a) Federal Roads - 36,000km (18%)
(b) State Roads - 32,000km (16%)
(c) Local Govt. Roads - 132,000km (66%)
Total - 200,000km
Figure 2: Ownership Structure of Nigerian Road Network
2.2 Past Achievements in Road Development
Achievement in road network development post-Independence can be looked at from three
eras namely; the pre-civil war (1960-1970), the oil boom period up to the end of the Military
administration in (1970-1999) and the Civilian administration of 1999 to date.
2.3 Pre-Civil War Era (1960-1970)
During the post-colonial period spanning from 1960-1970, emphasis was placed on
maintenance of the existing road network which carried by low traffic volumes of
predominantly single or double axle vehicles. Most of the roads were also sub-standard
consisting of single-lane carriageways and earth roads. A great proportion of inland freight
services were done by rail. The Public Works Department (PWD) which was responsible for
the maintenance of the road network ensured that the about 13,000km of federal road
network was adequately kept in serviceable levels.
2.4 Oil Boom Era (1970-1999)
The oil boom of the early 70s positively impacted on national road development. More roads
were constructed, rehabilitated, upgraded or maintained. By 1974, the federal road network
6
size had expanded to about 32,000km, classified as Trunk A and Trunk F roads. Between
1976 -1999, a total sum of about N39bn was allocated for the construction/ rehabilitation and
maintenance of Federal Highways in the country.
2.5 Civilian Administration {1999 to date (2017)}
The Civilian Administration of 1999 to date has positively impacted on national road
development. More roads were constructed, rehabilitated, expanded/upgraded or maintained.
This was achieved through funds obtained from the Ministry’s annual budgetary allocation
and funds obtained as grants and loans from International Financial Institutions like the
World Bank (WB), African Development Bank (AfDB), China Exim Bank and other
Multilateral Agencies such as Trans-Sahara Road Liaison Committee (TRLC), ECOWAS,
Japan International Coorperation Agency (JICA) etc.
Between the year 1999 to 2008, the Ministry has completed One Hundred and Fourteen (114)
federal highway road/bridge projects at the a total contract sum of N163,650,934,040.63 (One
Hundred and Sixty Three Billion, Six Hundred and Fifty Million, Nine Hundred and Thirty
Four Thousand and Forty Naira, Sixty Three Kobo.
Concurrently, within the year 1999 to 2008 the Ministry handled a portfolio of One Hundred
and Nine (109) on-going highway roads and bridges projects with a total contract sum of
N800,093,947,217.19 (Eight Hundred Billion, Ninety Three Million, Nine Hundred and Forty
Seven Thousand, Two Hundred and Seventeen Naira, Nineteen Kobo).
Additionally, between the year 2009 to 2017 the Ministry had embarked on a robust
infrastructural development on federal highway road projects as shown in the table below:
YEAR NO. OF ON-GOING PROJECTS TOTAL CONTRACT SUM (N)
2009 90 641,443,802,994.15
2010 144 886,632,767,949.42
2011 160 957,932,933,783.72
2012 192 1,288,452,792,112.92
2013 190 1,507,584,267,797.54
2014 211 2,242,276,961,131.70
2015 206 2,183,036,260,363.04
2016 204 2,141,664,267,735.17
2017 231 2,357,355,694,735.62
Table 1: Nigerian Road Development from 2009-2017
7
Figure 3: Chart for Nigerian Road Development from 2009-2017
3.0 HISTORICAL BACKGROUND OF FEDERAL MINISTRY OF POWER,
WORKS & HOUSING (WORKS SECTOR)
3.1 EMERGENCE OF THE MINISTRY
The emergence of the Federal Ministry of Power, Works and Housing (Works Sector) as an
organ of the Federal Civil Service dates back to the colonial era when it was created out of
the then Public Works Department and headed by the Director of Public Works. After
independence, the structure, scope and functions of the Departments were enlarged and
renamed Federal Ministry of Works and Surveys. It was then headed by a Cabinet Minister
who was assisted by the Permanent Secretary.
In 1966 when Military Administration came to the scene, the name, the structure and
functions were modified, and the Ministry became Federal Ministry of Works and was
headed by a Commissioner. While during the second Republic from 1979 to 1983 the
Ministry was split into two, namely Federal Ministry of Works, and Federal Ministry of
Housing and Environment. Each was headed by an Honourable Minister assisted by the
Permanent Secretary. However, in 1984 the two Ministries were merged to become Federal
Ministry of Works and Housing until 2002 when the Ministry was again split to Federal
Ministry of Works and Federal Ministry of Housing.
In 2007 the Ministry was merged with the Ministries of Aviation and Transport to form the
Federal Ministry of Transportation. The Ministry of Transportation was in 2009 demerged to
Federal Ministry of Works, Housing and Urban Development, Federal Ministry of
Transportation and Federal Ministry of Aviation. In the year 2010, the Ministry reverted back
NGN 0.00
NGN 500,000,000,000.00
NGN 1,000,000,000,000.00
NGN 1,500,000,000,000.00
NGN 2,000,000,000,000.00
NGN 2,500,000,000,000.00
YEAR
TOTAL CONTRACT SUM (N)
8
to Federal Ministry of Works. In the year 2016 the Ministry was merged with the Federal
Ministry of Lands, Housing and Urban Development and the Federal Ministry of Power to
form the present Federal Ministry of Power, Works and Housing.
4.0 MANDATE, FUNCTIONS AND ORGANISATIONAL STRUCTURE OF THE
FEDERAL MINISTRY OF POWER, WORKS AND HOUSING (WORKS SECTOR)
4.1 VISION AND MISSION STATEMENTS
4.1.1 VISION STATEMENT
“To elevate Nigerian roads to a standard where they become national economic and socio-
political assets, contributing to her rapid growth and development; to make federal roads
functional, pleasurable and an avenue of inventing Nigerians’ trust and confidence in
government”.
4.1.2 MISSION STATEMENT
“To use the intellectual, managerial and material resources available to the Federal Ministry
of Works to make Nigerian roads functional at all times”.
4.2 STRUCTURE OF THE WORKS SECTOR
In the year 2016, the Works Sector of the Ministry was recently restructured to eight (8)
professional departments including the Road Sector Development Team (RSDT) and four (4)
services departments with seven (7) Units.
9
Figure 4: Organisational Structure of Federal Ministry of Power, Works & Housing (Works Sector)
10
5.0 ROLE OF FINANCIAL INSTITUTIONS IN THE DEVELOPMENT OF THE
ROAD NETWORK IN NIGERIA
5.1 INTRODUCTION
International Financial Institutions and other Multi-lateral Agencies play a vital role in the
development of road infrastructure in Nigeria, these include the World Bank, African
Development Bank AfDB, China Exim Bank, The Infrastructure Bank (TIB), Trans-Sahara
Road Liaison Committee (TRLC), ECOWAS, Japan International Cooperation Agency
(JICA), NEPAD Infrastructure Project Preparation Facility among others.
5.2 ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS AND OTHER
MULTI-LATERAL AGENCIES THROUGH ROAD SECTOR DEVELOPMENT
TEAM (RSDT)
International Financial Institutions and Multi-lateral agencies are assisting the Ministry in
various ways to fund infrastructural projects among which is through the Road Sector
Development Team (RSDT), a semi-autonomous unit under the Ministry which is expected
to pave the way for an autonomous Federal Road Authority (FRA), under the Road Sector
Development Programme (RSDP).
Some of the funding supports for Federal Roads Development Project (FRDP) for the
Ministry through the RSDT are as follows:
World Bank (WB) – US$ 330m
Japan International Cooperation Agency (JICA) -US$3m
FGN – 10% Counterpart Fund ( for WB) -US$32m
African Development Bank AfDB – US$ 161.57M
FGN – 11% Counterpart Fund for (AfDB) - US$17.83m
Presently, disbursement for WB Credit was 98% and that of AfDB is at 78%.
11
5.3 FINANCING THE ABIDJAN-LAGOS CORRIDOR
Figure 5: Map of Abidjan-Lagos Road Corridor
The development of the Abidjan-Lagos 6-lane (2x3) Dual carriageway project was initiated
during the Forty Second (42nd) Ordinary Session of the Authority of Heads of States and
Government of ECOWAS, in Yamoussoukro on the 28th February, 2013.
The Abidjan-Lagos route connects some of the largest and economically most dynamic cities
in Africa, such as Lagos, Cotonou, Lome, Accra and Abidjan. Likewise, the corridor links
very vibrant sea ports that serve all the landlocked countries in the region, such as Burkina
Faso, Mali and Niger.
12
Table 2: Sources for funding on the Abidjan – Lagos Road Corridor
S/N SOURCE OF FINANCING CURRENCY
(UA)
1. LOANS FROM AfDB
a. Republic of Benin 1.00
b. Republic of Ghana 1.00
c. Federal Republic of Nigeria 1.00
Sub Total 3.00
2. GRANTS FROM AfDB
a. ECOWAS 4.00
b. Republic of Cote D’Ivoire 1.00
c. Togolese Republic 1.00
Sub Total 6.00
3. NEPAD Infrastructure Project Preparation Facility
(IPPF)
1.92
4. ECOWAS Counter Participation 0.16
TOTAL 11.08
NB UA1.00 = $1.407
5.4 TRANS-SAHARAN ROADS LIAISON COMMITTEE (TRLC)
Figure 6: Map of Trans-Saharan Route linking the six member countries of the TRLC
13
The Federal Republic of Nigeria is one of the six (6) member countries of the TRLC, as such
the infrastructural development of the Trans-Saharan route will facilitate trade among the
member countries thereby improve the socio-economic sector of the nations.
The portion of the Trans - Saharan Road (TSR) within Nigeria is approximately 1,131 km in
length and falls on the main axis of Tans Saharan Road from Algiers to Lagos. It starts in
Lagos in the South Western part of Nigeria and terminates at Kongolam on the Nigeria/Niger
border.
6.0 ANALYSIS ON THE MINISTRY’S ANNUAL INVESTMENT BUDGET IN THE
LAST FIVE (5) YEARS AND ACHIEVEMENTS MADE IN THE PAST TWENTY
(20) YEARS
6.1 MINISTRY’S ANNUAL INVESTMENT BUDGET IN THE LAST FIVE (5)
YEARS
In the last five (5) years, funds obtained by the Ministry through annual investment budget
were utilised to develop the highway infrastructural facilities through construction,
rehabilitation, upgrading and expansion. Although funds utilised were inadequate to cater for
the entire road network nationwide, the funds were cautiously utilised.
Table 3: 5-Year Funding Profile for Highway Projects (2012-2016) for the Ministry.
YEAR Amount Budgeted (N) Actual Funds Released (N)
2012 133,311,303,470.00 89,803,364,202.00
2013 134,427,651,813.00 58,350,534,632.00
2014 98,669,008,704.00 33,379,660,947.00
2015 20,646,000,000.00 12,589,550,984.80
2016 251,220,169,985.00 124,811,778,326.53
TOTAL 638,274,133,972.00 318,934,889,092.33
Figure 7: Chart for a 5-Year Funding Profile for Highway Projects (2012-2016) for the
Ministry.
14
6.2 MINISTRY’S ACHIEVEMENTS OVER THE PAST TWENTY (20) YEARS
Over the last twenty (20) years, the works sector of the Federal Ministry of Power, Works
and Housing has achieved positively to the development of road infrastructural facilities, this
was achieved through the Ministry’s annual budgetary provisions and grants/loans obtained
from various International Financial Institutions and other Multi-lateral Agencies, such as the
World Bank, African Development Bank AfDB, China Exim Bank, The Infrastructure Bank
(TIB), Trans-Sahara Road Liaison Committee (TRLC), ECOWAS, Japan International
Cooperation Agency (JICA), NEPAD Infrastructure Project Preparation Facility among
others.
Table 4: Funding Profile of Highway Construction and Rehabilitation Projects for the past
twenty (20) Years (1997-2016) for the Ministry.
YEAR Actual Amount Required (N) Amount Budgeted (N)
1997 28,000,000,000.00 3,294,375,980.00
1998 15,888,844,149.00 6,019,000,000.00
1999 25,000,000,000.00 14,370,025,969.02
2000 81,424,999,999.91 32,031,112,425.00
2001 49,500,000,000.00 67,155,740,000.00
2002 85,000,000,000.00 70,002,773,000.00
2003 191,954,295,254.4 66,525,940,000.00
2004 161,000,000,000.00 42,561,764,298.00
2005 143,650,000,000.00 82,519,373,423.00
2006 165,560,000,000.00 67,854,363,765.00
2007 202,000,000,000.00 134,665,481,922.00
2008 258,720,896,105.00 142,885,032,521.00
2009 197,522,317,618.00 182,622,818,424.00
2010 262,213,145,782.00 216,541,676,800.00
2011 164,600,000,000.00 130,013,949,780.00
2012 167,794,147,306.00 133,311,303,470.00
2013 171,294,667,671.00 134,427,651,813.00
2014 218,897,654,879.00 98,669,008,704.00
2015 239,043,204,052.64 20,646,000,000.00
2016 510,301,957,626.72 251,220,169,985.00
15
Figure 8: Chart showing Funding Profile of Highway Construction and Rehabilitation Projects for the past twenty (20) Years (1997-2016) for
the Ministry.
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7.0 FUTURE PROSPECTS
Figure 9: Map showing the proposed Golden (Economic) Triangle Super Highway
The Ministry is proposing to achieve in constructing a Golden (Economic) Triangle Super
Highway that will link major cities across the country. This will add approx. 5,000km to the
national network of roads in Nigeria, ensure the provision of world-class services on public
highway facilities as well as attract Real Estate development along the ROW and attract
Direct Foreign Investment and Private Sector finances with return on investment through
tolling (PPP’s).
17
8.0 CONCLUSION
In Nigeria, majority of inland freight and passenger traffic is carried by the road which
underscores the importance of developing and maintaining a stable road infrastructure. The
Nigerian road network has an estimated length of about 200,000km of which 18% is owned
by the Federal Government, 16% by the State Governments and the balance of 66% by the
Local Governments.
International Financial Institutions and other Multi-lateral Agencies play a vital role in the
development of road infrastructure in Nigeria; these include the World Bank, African
Development Bank AfDB, China Exim Bank, The Infrastructure Bank (TIB), Trans-Sahara
Road Liaison Committee (TRLC), ECOWAS, Japan International Cooperation Agency
(JICA), NEPAD Infrastructure Project Preparation Facility among others.
Several Studies are in place such as studies on the Lagos-Abidjan corridor road and the
studies being conducted by the Road Sector Development Team-an arm of the Ministry to
manage the Federal Road Development Programme which is being co-funded by the World
Bank (WB) and African Development Bank (AfDB) to pave way for the creation of Federal
Roads Authority (FRA), National Road Board and National Road Fund.
In the last five years, Ministry’s Annual Investment Budget for Highway projects from 2012
– 2016 amount to a total sum of N638, 274,133,972.00. In the last twenty (20) years (1997 to
2016), the works sector has achieved much in the development of road infrastructure. The
Ministry is proposing to develop a Golden (Economic) Triangle Super Highway which will
link major cities across the country.
18
REFERENCES
(n.d.). Federal Ministry of Works Operational Guideline.
FMPWHNigeria. (n.d.). Federal Ministry of Power Works and Housing Highway Database.
FMW. (2013). Compendium Report on Road Infrastructure and Related Development in Nigeria-An
Investment Manual.
FMWNigeria. (August 2010). Road Sector Update-A Presentation made to the Nigerian Economic
Summit Group.
FMWNigeria. (n.d.). Brief History of Federal Roads.
FMWNigeria. (November 2015). Brief to the Honourable Ministers on the Functions of the Highway
Departments.
FMWorksNigeria. (August 2013). 1. Brief on the Activities of the Federal Ministry of Works presented
to the Peer Review Team.
(n.d.). Report on the 64th Session of the Trans-Sahara Road Liaison Committee (TRLC) held at Algiers
on 26-27 April 2016.
(n.d.). Transforming Nigerian Roads: Achievements and Challenges in 2012.
