The Federal Government is considering terminating the N90 billion contract for the second runway at Abuja International Airport after contractors submitted a variation request.
The new request increased the contract value to N532 billion, marking a 491% increase over the original sum.
Minister of Aviation and Aerospace Development, Festus Keyamo, revealed this during his appearance before the National Assembly Joint Committee on Aviation to defend the ministry’s 2025 budget, as reported by the News Agency of Nigeria (NAN) on Wednesday.
Keyamo called the request unreasonable and unacceptable, stating that if the variation is not withdrawn, the government may cancel the contract.
“The variation that the contractors are bringing is a variation that I totally disagree with. I will not go ahead with that variation; the president himself doesn’t like variation. If a contract was awarded for N90 billion, and they are proposing N532 billion variation within a space of two years, I will not accept it. The option I have is to cancel the contract,” he said.
Keyamo explained that the contractor mobilized to the site following the Federal Government’s initial release of N30 billion. He also highlighted that compensation had been paid to communities affected by land issues.
The Aviation Minister further stated that some progress had been made on the project, including excavation and other preparatory works. However, the substantial cost increase has halted further progress.
Keyamo revealed that two proposals are currently under consideration, which he plans to present to the president after consulting with relevant stakeholders. While no final decision has been made, the option to cancel the contract remains on the table.
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