Abuja Runway Project Faces Setback Amidst Contract Dispute

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Abuja runway project: FG weighs options as contract sum hits N532bn

Abuja, Nigeria – The Federal Government has hit a significant roadblock in the development of the second runway at Nnamdi Azikiwe International Airport, Abuja. The project, initially contracted at ₦90 billion, has been stalled due to a contentious demand from the contractor for a variation increasing the contract sum to an astronomical ₦532 billion.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this development during a recent budget defense session before the National Assembly Joint Committee on Aviation. He expressed unequivocal disapproval of the proposed variation, describing it as “unacceptable” and hinting at the possibility of contract termination.

“The variation from ₦90 billion to ₦532 billion within a space of two years is unacceptable. The option I have is to cancel the contract. I will not allow any contractor to hold the government to ransom,” Keyamo asserted.

The project, which commenced with an initial release of ₦30 billion and a post-contract consultancy fee of ₦3.4 billion in May 2023, saw the contractor undertaking preliminary works, including land compensation in collaboration with the Federal Capital Territory Administration. However, progress was abruptly halted following the contractor’s departure from the site, citing the need for the substantial variation.

In response to this impasse, the Ministry has revoked the existing contract and is preparing to initiate a fresh bidding process to ensure the project’s timely completion. Keyamo emphasized the government’s commitment to fiscal responsibility and transparency, stating that such exorbitant cost escalations cannot be justified.

The Abuja second runway is a critical infrastructure project aimed at enhancing the airport’s capacity and operational efficiency. The government’s decisive action reflects its dedication to prudent financial management and the successful realization of national development projects.

For further updates on this developing story, stay tuned to Your News Outlet

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