The Nigerian Ministry of Aviation and Aerospace Development has canceled the contract for the second runway at Abuja’s Nnamdi Azikiwe International Airport. This decision, announced by Minister Festus Keyamo, SAN, came after the contractor demanded an inflated variation of N532 billion, far exceeding the original contract amount of N90 billion.
According to Keyamo, the contractor received an initial payment of N30 billion in 2023, along with a consultancy fee of N3.4 billion, but failed to continue work on the site. Efforts to bring the contractor back were unsuccessful, as they insisted on the massive variation. The minister described the demand as fraudulent and explained that the ministry had no choice but to revoke the contract and call for fresh bids.
When questioned about the unpaid N36 billion owed to former Nigeria Airways employees, Keyamo clarified that the matter had been transferred to the Ministry of Finance. He assured the committee that payments to the affected pensioners would be made soon, following agreements reached with union leaders in November 2024.
The minister also defended the government’s plan to establish Aerospace Universities across Nigeria’s six geopolitical zones. He argued that decentralizing aviation education, similar to the structure of the Nigeria Law School, would enhance accessibility and improve training in the sector.
Keyamo presented the Ministry’s 2025 budget proposal, totaling N71.13 billion. The breakdown includes:
- Capital projects: N69.2 billion
- Personnel costs: N1.147 billion
- Overhead costs: N745.7 million
The Joint Senate and House Committee requested detailed reports on 124 ongoing projects before approving the budget.
This decision underscores the government’s commitment to accountability and efficiency in national infrastructure projects. By rejecting inflated contract demands, the Ministry aims to ensure that public funds are used responsibly to develop critical infrastructure.
