The Federal Government is reviewing the possibility of terminating the N90 billion contract for constructing a second runway at Abuja International Airport. This decision follows the contractor’s controversial request for a cost variation.
The proposed adjustment increases the project cost to a staggering N532 billion—a 491% hike from the initial contract sum.
Keyamo Criticizes the Variation Request
Speaking during his budget defense session before the National Assembly Joint Committee on Aviation, the Minister of Aviation and Aerospace Development, Festus Keyamo, labeled the variation request as unreasonable.
“If a contract was awarded for N90 billion, and within two years they are proposing N532 billion, I won’t accept it. The president himself dislikes such variations. My option is to cancel the contract,” Keyamo stated.
The minister revealed that N30 billion had already been disbursed to the contractor as part of the mobilization process. Additionally, compensation was paid to affected communities for land use. However, despite initial progress, including excavation and preparatory works, the massive cost increase has brought the project to a standstill.
Options on the Table
Keyamo disclosed that two alternative proposals are under consideration. He plans to present these to President Bola Tinubu after consulting relevant stakeholders. While no final decision has been reached, canceling the contract remains a likely option if the variation request is not withdrawn.
2025 Budget Insights
According to a report from the News Agency of Nigeria (NAN), the Ministry of Aviation has proposed a total budget of N71 billion for 2025. Of this, N69 billion is allocated for capital projects, while personnel and overhead costs are estimated at N1 billion and N745 million, respectively.
Senator Abdulfatai Buhari, Chairman of the Joint Committee, emphasized the importance of maximizing allocated funds and ensuring accountability. He assured that the committee would intensify oversight efforts, particularly for critical projects like the second runway.
Buhari also commended Keyamo for his efforts in revitalizing the aviation sector, noting that the Nigeria Airspace Management Agency (NAMA) has been reinstated in the 2025 budget after being excluded in 2023 and 2024.
Call for Accountability
The Joint Committee urged aviation agencies to improve their responsiveness to National Assembly invitations, stressing that effective oversight is vital for transparency and accountability in executing government projects.
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