The Minister of Aviation and AeroSpace Development, Festus Keyamo, disclosed on Wednesday that the contract for the 2nd runway of Nnamdi Azikiwe International Airport, Abuja, was revoked due to price variation demands from the contractor initially awarded the project.
He disclosed that the original sum for the contract awarded was ₦90 billion, but the contractor started demanding an outrageous contract variation of ₦532 billion, which appeared to them as a fraud.
Speaking before the Joint Senate and House of Representatives Committee on Aviation, to defend his Ministry’s 2025 budget, Keyamo explained that based on the development, the contract was revoked by his Ministry to pave the way for fresh bidding.
He said: “After the N3.4 billion post contract consultancy fee paid to the contractor handling the project in May 2023, N90 billion was later paid in the same year for the whole contract out of which N30 billion was released.
“The contractor, after receiving the N30 billion and joining the Federal Capital Territory Administration to compensate some settlers on the affected land, left the site.
“All efforts made thereafter to get the contractor back to site proved abortive on the grounds of unacceptable contract variation being demanded.
“The contractor in question is demanding a contract variation of N532 billion from the original sum of N90 billion the contract was awarded for.
“To us in the Ministry, the said variation is nothing but fraud, leaving us with no option than to cancel the contract and call for fresh bids.”
Status of Defunct Nigeria Airways Pensioners
Asked by members of the committee why the ₦36 billion owed workers of the defunct Nigeria Airways was not reflected in the Ministry’s 2025 budget for required payment, Keyamo explained that the money has been shifted to the Ministry of Finance since the money is not meant for capital projects.
He assured that they would soon get their dues.
“The affected pensioners would soon get their dues from the Ministry of Finance and not from the Ministry of Aviation and Aerospace Development. I met with leaders of the joint unions on this in November last year and they agreed to an arrangement put on ground,” he said.
Keyamo presented the 2025 budgetary proposal of the Ministry to the committee which according to him, is ₦71.13 billion, out of which ₦69.2 billion is earmarked for capital projects, ₦1.147 billion for personnel cost and ₦745.7 million for overhead.
The committee through its Chairman, Senator Abdulfatai Buhari, told the minister the budget proposal would be given the needed approval after submission of full details on the state of 124 projects being executed by the Ministry.
“Historical background and current status of all the ongoing projects being executed by the Ministry are needed as requested for by this committee, latest by next week, for approval of the presented budget proposals,” he said.
