The federal government has said it may terminate the N90 billion contract for the second runway at Abuja International Airport after contractors submit a variation request.
The new request increased the contract value to N532 billion, marking a 491 per cent increase over the original sum.
Minister of Aviation and Aerospace Development, Festus Keyamo, revealed this during his appearance before the National Assembly Joint Committee on Aviation to defend the ministry’s 2025 budget.
He described the request as unreasonable and unacceptable, stating that if the variation is not withdrawn, the government may cancel the contract.
“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,” he said.
According to Keyamo, the contractor mobilised to site following the Federal Government’s initial release of N30 billion.
He also highlighted that compensation had been paid to communities affected by land issues and that some progress had been made on the project, including excavation and other preparatory works.
He, however, stated that the substantial cost increase had halted further progress.
The minister Keyamo revealed that two proposals were currently under consideration, which he plans to present to the president after consulting with relevant stakeholders.
He added that while no final decision has been made, the option to cancel the contract remains on the table.
