FG Threatens To Revoke Abuja-Lokoja-Benin Road Contracts

Federal government has read riot acts to contractors handling dualisation of Abuja-Lokoja-Benin road and threatened to terminate the contracts.

The minister of works Engr. David Umahi gave the warning during a meeting with the four contractors in his office yesterday in Abuja.

The dualisation project is being handled by CGC Nigeria, Mother Cat, Dantata and Sawoe, and RCC under the NNPCL tax scheme.

He accused the contractors of receiving projects without equipment and required manpower to execute.

Umahi directed the contractors to accept the federal government of Nigeria’s new terms or quit the site.

He lamented saying that “the arrogance of contractors in Nigeria insulting.”

He said they try to dictate for Nigeria and receive contracts without personnel to execute thereby staying on a single project for 17 years and asking for variations.

He said the government has agreed on N2bn per kilometre and any contractor not willing to sign and deploy in three different sections at a time will be terminated.

He explained that the initial cost of the project was N121bn however, before the administration of President Bola Ahmed Tinubu, the project was already reviewed to about N870bn.

“When I came in as minister, I saw that the project was over bloated and I refused to take any objection to FEC. I had to go through the raid by myself and I realised that some sections of the road cannot survive the asphalt and so we started meetings that took us up to five months with the contractors and agreed to rescope the project so we did. Then we said the new lanes should be done on concrete while the other ones should be done on asphalt and so we gave a contract sum and we all signed.

“We demanded from the contractors to approve that they can do the job and they did but the arrogance of contractors in this country is very insulting. A country where the contractors are dictating what happens, in the ministry of works, many contractors have over 17 projects but they have no personnel and equipment to do it. They are just playing politics. Staying on jobs for 17 years and that is what is playing out.

„So the position of the government is that if you are not signing the contract between today and tomorrow (Friday), you will forgo the jobs. You can go to court, we will not enter into any further negotiations. This contract is over N2bn per kilometre.

„You don‘t have the equipment to do the work. And let me assure you that if you are signing the contract, you sign it along with the basic rates, timetable and you deploy in three sections or I will terminate the contract. Enough of these insults, enough of this politics, enough of playing with the psyche of the people.“

He stated further, „If you‘re not ready to mobilise in three sections, you will lose the job and I‘ve directed the ministry to audit the sites within the next seven days. Let us know the qualifications of the workers and equipment.” The minister said the ministry developed the unit rate, adding that it was developed from basic rates. „It‘s not for you to dictate. It is for you to accept or reject.”

He continued „No contractor will tell us henceforth that they are looking for approval from head office. The companies are registered in Nigeria and everything must happen in Nigeria. We are a sovereign nation, we deserve some respect. It is insulting to be telling us that they are looking for approval from the head office. Any contractor that tells us again will be penalized.“

He said the government was giving the four contractors the right of first refusal and it would not accept any addendum.

„NNPCL has written to us that the contract has elapsed and so we came up with a total review of the project and are signing brand new contracts. So, it‘s up to you to accept or reject. You cannot force us to sign an addendum.

The contract is being given for you to sign between today and tomorrow, if you are not signing then it means that we have no agreement. I‘m not going to do your bidding. We have to protect this country. What we are offering is our standard in this ministry so no contractor will change it,“ he said.

At the meeting were representatives of Julius Berger, CCECC, CGC Nigeria, Mother Cat, Dantata and Sawoe, RCC and directors from the Federal Ministry of Works.