The Minister of Aviation and Aero Space Development, Festus Keyamo, SAN, On Wednesday, revealed that his Ministry had rejected an excessive contract variation of N532 billion, which was proposed for the N90 billion contract awarded to the contractor managing the second runway at Nnamdi Azikiwe International Airport in Abuja.

Keyamo made this disclosure during the budget defense session with the National Assembly Joint Committee on Aviation.

He said that the contract has been revoked and will be re-opened for fresh bidding by interested contractors.

He said, “After N3.4billion post contract consultancy fee paid to contractor handling the project in May 2023, N90bn was later paid in the same year for the whole contract out of which N30bn was released.

“The contractor after receiving the N30bn and joined the federal capital territory administration to compensate some settlers on the affected land, left the site.

“All efforts made thereafter to get the contractor back to site proved abortive on the grounds of unacceptable contract variation being demanded.”

He continued “The contractor in question is demanding for contract variation of N532billion from the original sum of N90bn the contract was awarded for.

“To us in the Ministry, the said variation is nothing but fraud leaving us with no option than to cancel the contract and call for fresh bids.”

Members of the committee also questioned the minister about the N36 billion owed to workers of the defunct Nigeria Airways, noting that it was not included in the ministry’s 2025 budget for payment.

In response, the minister explained that the payment for the N36 billion has been transferred to the Ministry of Finance, as the funds are not intended for capital projects.

“The affected pensioners would soon get their dues from the Ministry of Finance and not from the Ministry of Aviation and Aerospace Development.

“I met with leaders of the joint unions on this in November last year and they agreed to arrangement put on ground,” he stated.

However, he disagreed with the suggestion from some committee members to discontinue the establishment of Aerospace Universities across the six geo-political zones, just because there is one in Zaria, Kaduna State.

He argued that the Nigeria College of Aviation Technology (NCAT) was established in 1964, just as the Nigeria Law School was founded in Lagos, highlighting the importance of having such institutions in various regions.

He said, “While the Nigeria Law School has been decentralized, the Aviation College in Zaria has not been properly followed suit, which the Aerospace Universities are aimed at.”

He then presented the ministry’s 2025 budget proposal to the committee, which amounts to N71.13 billion. According to him, N69.2 billion is allocated for capital projects, N1.147 billion for personnel costs, and N745.7 million for overheads.

However, the joint committee, through its Chairman, Senator Abdulfatai Buhari (APC Oyo North), informed the minister that approval for the budget proposal would be granted only after the submission of full details regarding the status of the 124 projects being executed by the Ministry.