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Says fresh bids will be conducted
From Adesuwa Tsan, Abuja
The Minister of Aviation and Aerospace Development, Festus Keyamo, has revealed that his ministry terminated a controversial contract for the construction of the second runway at the Nnamdi Azikiwe International Airport in Abuja due to an outrageous variation in the project’s cost.
Originally awarded for N90 billion, the contractor demanded a variation of N532 billion, leading to the ministry’s decision to revoke the contract.
Keyamo made this disclosure during his budget defence session with the National Assembly Joint Committee on Aviation on Wednesday.
“The ministry paid N3.4 billion in post-contract consultancy fees and later disbursed N30 billion as part of the N90 billion contract. However, the contractor left the site after using part of the funds to compensate settlers on the affected land. Attempts to get the contractor back to work were futile as they insisted on a fraudulent contract variation of N532 billion,” Keyamo stated.
Decrying the demand as an act of fraud, Keyamo explained that the ministry had no choice but to cancel the contract and reopen the bidding process.
The minister was also questioned about the exclusion of N36 billion owed to former workers of the defunct Nigeria Airways from the 2025 budget. He clarified that the responsibility for the payment had been transferred to the Ministry of Finance.
“The money is not for a capital project, so it falls under the purview of the Ministry of Finance. I have met with union leaders, and they agreed to the arrangements in place,” Keyamo said.
Keyamo dismissed suggestions to discontinue plans for establishing Aerospace Universities across the six geopolitical zones, despite the existence of the Nigerian College of Aviation Technology (NCAT) in Zaria. He argued that decentralising aviation training, similar to the Nigerian Law School model, was necessary to meet growing demands in the aerospace sector.
Meanwhile, the minister presented a 2025 budget proposal of N71.13 billion, with N69.2 billion allocated for capital projects, N1.147 billion for personnel costs, and N745.7 million for overhead expenses.
The joint committee, chaired by Senator Abdulfatai Buhari (APC, Oyo North), withheld approval of the budget, demanding detailed reports on the status of 124 ongoing projects under the ministry.
“Provide us with the historical background and current status of all projects being executed by the ministry by next week. Only then can we approve the budget proposal,” Senator Buhari directed.