The Federal Government of Nigeria is considering canceling the N90 billion contract for the construction of the second runway at the Nnamdi Azikiwe International Airport, Abuja, following an alarming variation request from the contractors. The contractors submitted a revised proposal, increasing the project cost to N532 billion a 491% escalation over the original contract sum.
This revelation was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, during the ministry’s budget defense session before the National Assembly Joint Committee on Aviation for the 2025 fiscal year. The development, reported by the News Agency of Nigeria (NAN), has sparked widespread concern and debate over the transparency and feasibility of the variation request.
Minister’s Stance
Minister Keyamo expressed his strong opposition to the variation, describing it as unreasonable and inconsistent with the government’s stance on fiscal prudence. He emphasized that such a drastic increase in the project cost within two years is unacceptable.
“The variation that the contractors are bringing is a variation that I totally disagree with. I will not go ahead with that variation; the president himself doesn’t like variation. If a contract was awarded for N90 billion, and they are proposing N532 billion variation within a space of two years, I will not accept it. The option I have is to cancel the contract,” Keyamo stated.
The minister further reiterated his commitment to maintaining transparency and accountability in the aviation sector. According to him, approving such an inflated variation would set a dangerous precedent and undermine public confidence in the government’s commitment to prudent spending.
National Assembly’s Reaction
Members of the National Assembly Joint Committee on Aviation reportedly expressed shock at the magnitude of the cost variation. Some lawmakers questioned the rationale behind the contractors’ request, pointing out that such an increase calls into question the initial due diligence conducted before the project was awarded.
Senator Bala Ibn Na’Allah, a member of the committee, urged the government to take decisive action to prevent wastage of public funds. “This is a serious issue, and we cannot continue to allow contractors to dictate terms to the government. The ministry must act swiftly to address this matter,” he said.
Contractual Background
The N90 billion contract for the second runway was awarded during the administration of former President Muhammadu Buhari, with the aim of addressing capacity and operational challenges at Abuja International Airport. The runway was expected to improve safety, reduce delays, and accommodate the increasing traffic at the airport, which serves as a major gateway into the country.
However, since the award of the contract, progress on the project has reportedly been slow, with concerns over funding and now the contentious variation request.
The news of the potential 491% increase has drawn criticism from various quarters, with civil society organizations and aviation experts calling for a thorough investigation into the matter. Some have questioned whether the initial cost estimate was realistic or if there were lapses in the planning and procurement processes.
In response to the situation, Minister Keyamo has indicated that he will not hesitate to cancel the contract if the contractors fail to withdraw their variation request. “We cannot be seen as a government that condones such practices. It’s either they comply with the original agreement or we terminate and look for credible contractors,” he said.
The government is now faced with a critical decision that could have significant implications for the aviation sector and the broader economy. As the controversy unfolds, stakeholders are watching closely to see how the government navigates this challenging situation.
The budget defense session provided a glimpse into the challenges facing Nigeria’s aviation sector, highlighting the need for greater transparency, accountability, and fiscal discipline in project execution.
