FG Sets Ultimatum for Abuja-Lokoja-Benin Road Contractors: Sign Contract or Forfeit Job

The Federal Government has issued a stern ultimatum to construction companies working on the Abuja-Lokoja-Benin highway, demanding their prompt signing of a N870 billion contract by Thursday, April 25, and Friday, April 26, 2024. Failure to meet this deadline will result in their removal from the project.

Minister of Works, David Umahi, announced the deadline, emphasizing that the previous contract for the 480km-long project, which operated under the Nigerian National Petroleum Corporation (NNPCL) Tax Credit Scheme, had expired, necessitating the new contract.

However, Umahi outlined conditions for the contract signing, including adherence to the basic rate, compliance with the timetable, and deployment of personnel and equipment across three sections of their respective stretch.

The companies involved include Mothercat Nigeria Ltd, CGC Nigeria Ltd, Reynolds Construction Company (RCC), and Dantata and Sawoe Construction Company Nigeria Ltd.

Umahi attributed the decision to issue a new contract to the behavior of foreign contractors, noting that the recently revised contract underwent due diligence, and the augmentation was duly approved.

While most contractors accepted the review without objections, Umahi highlighted delays in responses, except for RCC, which raised certain concerns.

Upon assuming office, Umahi discovered discrepancies in the total contract sum for the 284km Lokoja-Benin road, which escalated from N121 billion to over N870 billion, an amount he deemed excessive.

After conducting an inspection tour, it was evident that some sections could not support asphalt overlay, necessitating a re-scope of the project with the use of concrete overlay on new lanes and asphalt on other sections.

Despite contractors expressing reservations and requesting additional time for review, Umahi remained resolute, urging them to adhere to the terms or risk termination. He emphasized the need to evaluate contractors’ capacity to ensure successful project completion.

In conclusion, the Minister reaffirmed the government’s commitment to holding contractors accountable, stating, “Sign the contract or leave the job; you don’t need to do the job.”