The Federal Government has implemented stricter conditions for contractors seeking mobilisation fees to ensure greater accountability in project execution. Minister of Works, David Umahi, announced that contractors must deploy to the site and work for at least 30 days before receiving the usual 30% mobilisation fee.
Umahi made this statement while inspecting the Abuja-Kaduna-Kano road rehabilitation project, which was re-awarded to Infiouest Nigeria Limited after the termination of Julius Berger’s contract due to a pricing dispute.
He emphasized that the Procurement Act allows, but does not mandate, upfront mobilisation payments, justifying the new policy as a way to ensure contractors demonstrate financial capacity before receiving funds.
The government has allocated N75bn for Infiouest’s mobilisation, representing 30% of the N252bn project cost, with a 14-month completion timeline. Umahi also provided updates on the Lagos-Calabar coastal highway and reaffirmed Julius Berger’s involvement in other projects, dismissing claims of government bias.
