FG considers cancelling N90 billion Abuja Airport runway contract over N532 billion variation request

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The Federal Government is considering terminating the N90 billion contract for the second runway at Abuja International Airport after contractors submitted a variation request.

The new request increased the contract value to N532 billion, marking a 491% 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, as reported.

Keyamo called the request unreasonable and unacceptable, stating that if the variation is not withdrawn, the government may cancel the contract.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 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.

Keyamo explained that the contractor mobilised to the 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.

The Aviation Minister further stated that some progress had been made on the project, including excavation and other preparatory works. However, the substantial cost increase has halted further progress.

Keyamo revealed that two proposals are currently under consideration, which he plans to present to the president after consulting with relevant stakeholders. While no final decision has been made, the option to cancel the contract remains on the table.

The report revealed that the Ministry of Aviation has proposed a total budget of N71 billion for 2025, with N69 billion earmarked for capital projects, N1 billion for personnel costs, and N745 million for overheads. Keyamo emphasized that many of the listed projects are ongoing and focused on enhancing the sector.

Senator Abdulfatai Buhari, Chairman of the Joint Committee, stressed the need for efficient use of the allocated funds.

He pledged that the committee would intensify oversight to ensure tangible results, especially for critical projects like the second runway.

Buhari also pointed out that the Nigeria Airspace Management Agency (NAMA), which was excluded from the Federal Government’s budget in 2023-2024, has been reinstated in the 2025 budget. He commended Keyamo for his dedication and the progress made in the aviation sector under the current administration.

The committee urged the ministry’s agencies to be more responsive to National Assembly invitations, with Buhari emphasizing that effective oversight requires timely cooperation from government bodies to ensure transparency and accountability in project execution.