The Minister of Works, David Umahi, has issued a stern ultimatum to contractors handling sections I-IV of the Lokoja-Benin and Obajana Junction-Benin roads in Kogi and Edo states, threatening to revoke their contracts if they fail to sign the reviewed contract agreements.
He set a deadline of Thursday, April 25, and Friday, April 26, 2024, for the construction companies working on the Abuja-Lokoja-Benin highway to sign a N870 billion contract.
Failure to meet the deadline will result in their removal from the project.
Umahi emphasized that the previous 480km-long project contract, which operated under the Nigerian National Petroleum Corporation Tax Credit Scheme, has expired, necessitating the formulation of a new contract.
”The project was initially N121bn, but before the administration of President Ahmed Bola Tinubu, the project was already reviewed to about over N870bn,” Umahi disclosed.
He added, “When I came in as Minister, I saw that the project was over-bloated, and I refused to take the No Objection to FEC. I had to go through the road myself, and I realized that some sections of the road could not survive asphalt.”
During a meeting at the ministry headquarters in Abuja, Umahi reiterated his dissatisfaction with the slow progress of work on the Benin-Ekpoma-Auchi-Okpella-Okene-Lokoja Road, echoing a similar sentiment expressed during a previous visit to Edo State Governor, Godwin Obaseki.
Representatives from contracting firms such as Mothercat Nigeria Ltd, CGC Nigeria Ltd, Reynolds Construction Company, and Dantata and Sawoe Construction Company Nigeria Ltd attended the meeting with the minister. Umahi instructed his ministry’s staff to conduct a comprehensive audit of ongoing projects within seven days to assess the status of work done, as well as the capacity of personnel and equipment employed by the contractors.
Umahi attributed the decision to issue a new contract to the behavior of foreign contractors, revealing that the revised contract underwent due diligence, and its augmentation was approved.
Despite signing documents committing to the job based on the new specifications, contractors failed to sign the reviewed contract documents.
The minister emphasized the government’s stance on contractor accountability, declaring that any contractor unwilling to sign the contracts would forfeit the jobs, with no room for further negotiation.
He warned against contractors holding the nation hostage or imposing conditions on the Ministry, emphasizing the priority of safeguarding people’s lives and ensuring project progress.
“The vehicles are falling down, and you’re playing politics with the lives of the people. And we fold our hands and leave you for what? You can’t be on site….So if you are not working, pack your things out of that site.” Umahi said.
Umahi concluded by urging non-compliant contractors to vacate the project sites if unwilling to fulfill their obligations.
