Federal Gov’t Rejects N532bn Contract Variation For Abuja Airport 2nd Runway, Seeks Fresh Bids

The Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), on Wednesday in Abuja, announced that his ministry has rejected a controversial contract variation of N532 billion from the original N90billion awarded for the construction of the second runway at the Nnamdi Azikiwe International Airport, Abuja.

Speaking during a budget defence session with the National Assembly Joint Committee on Aviation, Keyamo revealed that the ministry had revoked the contract and initiated plans for fresh bidding.

Keyamo explained, “After paying N3.4 billion as post-contract consultancy fees in May 2023 and releasing N30 billion out of the total N90 billion contract sum, the contractor left the site after compensating some settlers on the affected land, in collaboration with the Federal Capital Territory Administration. Despite repeated efforts, the contractor failed to resume work, citing an unacceptable demand for contract variation.”

He added, “The contractor demanded a contract variation of N532 billion from the initial N90 billion. To us, this is outright fraud, leaving us no choice but to cancel the contract and open the bidding process to new contractors.”

During the session, lawmakers questioned why the N36 billion owed to workers of the defunct Nigeria Airways was not included in the ministry’s 2025 budget proposal.

In response, Keyamo clarified that the responsibility for the payment had been shifted to the Ministry of Finance, as the funds were not part of capital projects.

“The affected pensioners will receive their dues through the Ministry of Finance. I met with leaders of the joint unions last November, and they agreed with the arrangement,” he stated.

The minister also defended plans to establish Aerospace Universities across Nigeria’s six geopolitical zones, countering suggestions from lawmakers to discontinue the initiative due to the existence of the Nigeria College of Aviation Technology (NCAT) in Zaria, Kaduna State.

Keyamo argued, “Just as the Nigeria Law School, established in Lagos, has been decentralised, the Aerospace Universities aim to decentralise aviation training, which the NCAT has not fully achieved since its establishment in 1964.”

The minister presented a N71.13 billion budget proposal for 2025, with N69.2 billion earmarked for capital projects, N1.147 billion for personnel costs, and N745.7 million for overhead cost.

However, the Joint Committee, led by Senator Abdulfatai Buhari (APC, Oyo North), demanded a detailed report on the status of ongoing 124 projects before approving the new budget.

“The historical background and current status of all ongoing projects are required by this committee no later than next week for budget approval,” the lawmaker stated.