Festus Keyamo (SAN), the Minister of Aviation and Aerospace Development, said in Abuja on Wednesday that his Ministry had rejected a proposed contract variation increasing the cost of the second runway at Nnamdi Azikiwe International Airport, Abuja, from N90 billion to N532 billion.
Speaking during the budget defence session with the National Assembly’s Joint Committee on Aviation, Keyamo stated that the original contract had been revoked and would be reopened for fresh bidding due to the exorbitant variation.
Keyamo highlighted that the Federal Government had commenced the project last year, although it had faced delays and challenges since the administration of former President Olusegun Obasanjo.
Providing details during the session, the Minister said, “After paying N3.4 billion in consultancy fees to the contractor in May 2023, an additional N90 billion was allocated for the project, with N30 billion released.
“The contractor used part of the funds to compensate settlers on the affected land in collaboration with the Federal Capital Territory Administration but subsequently abandoned the site.”
Efforts to bring the contractor back to work failed, with the contractor insisting on a variation of N532 billion, a figure Keyamo described as fraudulent.
“Given the circumstances, the ministry had no option but to cancel the contract and initiate a fresh bidding process”, he explained.
Read also: Keyamo exposes lopsided documents on Nigeria Air signed by Hadi Sirika
The Minister also addressed concerns raised by lawmakers regarding the absence of a N36 billion payment owed to workers of the defunct Nigeria Airways in the 2025 budget.
He clarified that the matter had been transferred to the Ministry of Finance since it was not categorised as a capital expenditure.
“The pensioners will receive their payments through the Ministry of Finance. I met with union leaders last November, and they agreed to the arrangement”, he added.
Regarding a proposal to discontinue establishing Aerospace Universities across the six geopolitical zones, citing the existence of the Nigeria College of Aviation Technology (NCAT) in Zaria, Kaduna State, Keyamo disagreed.
He argued that decentralising Aviation education was necessary, much like how the Nigerian Law School expanded beyond Lagos.
Keyamo presented a 2025 budget proposal of N71.13 billion for the Ministry, allocating N69.2 billion for capital projects, N1.147 billion for personnel costs, and N745.7 million for the overhead.
However, the Committee, chaired by Abdulfatai Buhari (APC Senator Oyo North), withheld approval, requesting a detailed status report on 124 ongoing projects under the Ministry.
“The historical background and current status of all ongoing projects must be submitted by next week to facilitate budget approval”, Buhari said.
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