FG Revokes 2nd Abuja Airport Runway Contract Over N532bn Variation Demand – Minister

The Federal Government has canceled the contract for the second Abuja airport runway following a request for a staggering N532 billion cost variation, according to the Aviation Minister.

On Wednesday, Festus Keyamo, SAN, the Minister of Aviation and Aerospace Development, shared that he refused an excessive contract adjustment from N90 billion to N532 billion for the second runway at Abuja’s Nnamdi Azikiwe International Airport.

Keyamo revealed this information during his appearance before the Joint Senate and House of Representatives Committee on Aviation, stating that the Ministry had already canceled the contract to allow for new bidding opportunities.

He stated: “Following the N3.4 billion post-contract consultancy fee paid to the contractor managing the project in May 2023, an additional N90 billion was later disbursed for the entire contract within that year, of which N30 billion has been released.”

After receiving the N30 billion and collaborating with the Federal Capital Territory Administration to compensate some settlers on the affected land, the contractor left the site.

All subsequent attempts to bring the contractor back on site were unsuccessful due to demands for unacceptable contract variations.

The contractor is requesting a modification to the contract, increasing it from the original N90 billion to N532 billion.

In our view at the Ministry, this variation is simply fraudulent, leaving us with no choice but to cancel the contract and invite new bids.

Committee members inquired with the minister as to why the N36 billion owed to employees of the defunct Nigeria Airways was not included in the Ministry’s 2025 budget for payment.

In his response, the minister stated that the responsibility for handling the N36 billion payment has been transferred to the Ministry of Finance, as these funds are not intended for capital projects.

“The impacted pensioners will soon receive their dues from the Ministry of Finance, rather than the Ministry of Aviation and Aerospace Development. I discussed this matter with leaders of the joint unions in November last year, and they agreed to a proposed arrangement,” he stated.

However, he disagreed with some committee members’ suggestions to discontinue the establishment of Aerospace Universities across the six geopolitical zones just because there is already one in Zaira, Kaduna State.

He stated that the Nigeria College of Aviation Technology (NCAT) was established in 1964, and similarly, the Nigeria Law School was founded in Lagos.

“Although the Nigeria Law School has been decentralized, the Aviation College in Zaria has not effectively followed this example, which is a goal for Aerospace Universities.”

Subsequently, he submitted the Ministry’s 2025 budget proposal to the committee. According to him, it totals N71.13 billion, with allocations of N69.2 billion for capital projects, N1.147 billion for personnel costs, and N745.7 million for overhead expenses.

Nevertheless, the joint committee, led by its Chairman Senator Abdulfatai Buhari (APC Oyo North), informed the minister that the budget proposal would receive approval once full details on the status of 124 projects currently being executed by the Ministry were submitted.

He stated, “This committee requires the historical background and current status of all ongoing projects executed by the Ministry to be submitted by next week at the latest in order to approve the presented budget proposals.