- Festus Keyamo rejected a proposed N532 billion contract variation for the Abuja airport’s second runway, calling the increase fraudulent
- After the contractor abandoned the project following initial land compensation, the minister announced contract revocation and plans to reopen bidding
The Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), has rejected a proposed contract variation of N532 billion for the second runway at the Nnamdi Azikiwe International Airport, Abuja.
The original contract, awarded for N90 billion, was described as “outrageous” by the minister.
Speaking before the National Assembly Joint Committee on Aviation during the 2025 budget defence session, Keyamo announced the revocation of the contract. He revealed plans to reopen bidding to interested contractors.
Keyamo explained that a post-contract consultancy fee of N3.4 billion was paid to the contractor in May 2023. Later, N90 billion was allocated for the project, with N30 billion disbursed.
However, the contractor ceased work after compensating settlers on the affected land, in collaboration with the Federal Capital Territory Administration. Efforts to resume work failed.
“The contractor demands a variation of N532 billion from the original N90 billion contract sum. To us in the ministry, this is fraudulent, leaving no choice but to cancel the contract and call for fresh bids,” Keyamo stated.
During the session, committee members also queried why the N36 billion owed to workers of the defunct Nigeria Airways was excluded from the ministry’s 2025 budget.
Keyamo clarified that the payment responsibility had been transferred to the Ministry of Finance, as it is unrelated to capital projects.
The minister further disagreed with some committee members’ suggestion to discontinue the establishment of Aerospace Universities across the six geopolitical zones, citing the need for more institutions despite the existing one in Zaria, Kaduna State.
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