FG considers cancelling N90 billion Abuja Airport runway contract over N532 billion variation request

The Federal Government is considering cancelling the N90 billion Abuja Airport runway contract due to a massive variation request of N532 billion by the contractors. This was revealed by the Minister of Aviation and Aerospace Development, Festus Keyamo, who stated that the government is not willing to accept such a huge variation, which is almost six times the initial contract amount.

According to Keyamo, the contractor had already received N30 billion and had done some work on the site, but the new variation request is unacceptable. The government is now exploring options, including cancelling the contract, as they cannot continue with such unreasonable variations.

The Minister emphasized that the president is not in favor of variations, and the government will not go ahead with the project if the contractors insist on the new price. He stated that the government is committed to ensuring efficient use of funds and preventing unnecessary expenses.

The Abuja Airport runway contract was awarded in 2020, with an initial completion date of 2022. However, the project has been plagued by delays and cost overruns, with the contractor citing various reasons for the variations.

The government's decision to consider cancelling the contract has been welcomed by stakeholders, who have long criticized the project's management and the lack of transparency in the variation requests. The Nigerian Senate had previously summoned the Minister of Aviation and the contractor to explain the reasons behind the variation requests.

The cancellation of the contract would be a significant blow to the contractor, who has already invested heavily in the project. However, the government's decision is seen as a necessary step to protect the public interest and ensure that taxpayers' money is not wasted on unnecessary expenses.

The development is also expected to have implications for the country's aviation sector, as the Abuja Airport is one of the busiest airports in Nigeria. The government has assured that it will explore alternative options to complete the project, including re-awarding the contract to a new contractor.

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