Keyamo threatens to terminate runway project contract as contractors demand N532bn

Festus Keyamo, minister of aviation and aerospace development, says the contractors handling the second runway project of the Abuja international airport are requesting N532 billion.

Keyamo spoke while defending the ministry’s 2025 budget before the national assembly joint committee on aviation on Wednesday.

He said the proposed variation is against the initial N90 billion allocated for the project’s execution.

The federal executive council (FEC), on March 23, 2022, approved N92.123 billion for the construction of a second runway at the Nnamdi Azikiwe International Airport, Abuja.

On September 6, 2023, Keyamo said the federal government would deliver the runway within 12 months.

Responding to questions about the reported delay in the project’s execution, the minister said the contractor had commenced work, following the initial disbursement of N30 billion and the settlement of land-related compensation to affected communities.

Keyamo said the contractor had used the funds to carry out excavation and other works on-site before subsequently requesting a variation of N532 billion.

However, the minister said the government found the request unacceptable.

“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,” Keyamo said.

“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.

“So, with the situation now, we have two proposals on the table which I will take to the president, and I will consult my chairman. So we are considering various options.

“This country cannot go on with such unreasonable variations.”

Keyamo said the ministry’s proposed 2025 budget totals N71 billion, allocating N69 billion for capital projects, N1 billion for personnel costs, and N745 million for overhead expenses.

He also said a considerable portion of the projects slated for completion are already in progress within the ministry.

‘ENSURE EFFICIENT USE OF FUNDS ALLOCATED’

Speaking earlier, Abdulfatai Buhari, chairman of the joint committee, said the panel must ensure the efficient use of funds allocated to achieve tangible results.

He said the committee would intensify its oversight functions on the ministry and the company handling the funds, stressing the importance of the projects to the aviation sector.

The chairman noted that the Nigeria Airspace Management Agency (NAMA), which was excluded from the federal government’s 2023-2024 budget, has now been reinstated in the 2025 budget.

“Therefore, this budget event will be a critical step in our efforts to ensure that our nation’s resources are allocated efficiently and effectively,” he said.

The senator commended the minister and his team for their dedication and the progress achieved in the aviation sector since the start of the current administration.

He called on Keyamo to ensure that agencies under the ministry respond promptly to invitations from the national assembly, adding that the legislature holds the authority to summon the agencies as part of its oversight duties.