Abuja, Nigeria
The second runway project at the Nnamdi Azikwe International Airport, Abuja, has been abandoned as the contractors handling the project are requesting N532 billion as against the initial awarded cost of N90 billion.
Festus Keyamo, the Minister of Aviation and Aerospace Management disclosed the development on Wednesday while defending the ministry’s 2025 budget at the national assembly.
The minister said the request was too big compared to the initial N90 billion allocated for the project.
In March 2022, the Federal Executive Council (FEC) approved a sum of N92.123 billion for the construction of a second runway for the airport.
DailyAgent Analytics revealed that the amount being demanded by the contractors is a 491.11 percent increase from the initial project awarded cost—representing a 5-fold increase from the contract’s original cost.
As of March 2022 when the project was awarded, the foreign exchange rate was N415 to $1 compared to N1,550 to $1 as obtainable in January 2025 which may have shaped the request of the contractors.
Project implementation and matters arising
On September 6, 2023, Keyamo said the runway would deliver the runway within 12 months—which should have been September 2024.
Speaking further on Wednesday, the minister said he would not continue with the contractor because the government cannot provide the N532 being demanded.
“We have abandoned the site and not going on with the project. The variation that the contractors are bringing is a variation I totally disagree with,” Keyamo said.
“As a responsible minister, I will not go ahead with this kind of variation. Mr President does not like variations. He sees it as an avenue for fraud—he says it every time.”
“The option I have now is to cancel the contract and invite fresh bids.”
