FG Cancels N870bn Road Contracts, 2,270 Projects Face Delays

Minister of Works, David Umahi
Minister of Works, David Umahi Google

The Federal Government has revoked N870 billion worth of highway contracts awarded to three construction companies - Dantata & Sawoe, MotherCat, and RCC - due to non-performance.

The Minister of Works, Dave Umahi, ordered the termination of the contracts for sections II, III, and IV of the dualisation of the Obajana-Benin Road, as 2,270 road projects nationwide suffered delays.

Umahi took this action just 24 hours after issuing an ultimatum to the contractors handling various road projects to improve their performance or risk losing their contracts.

Upon assuming office, Umahi inherited 2,600 uncompleted road projects, but this figure has been reduced to 2,270 following the completion of 330 emergency projects after an appropriation of N300 billion by the Federal Government.

The revoked contracts were initially valued at N121 billion but were later reviewed to N870 billion at N2 billion per kilometre. Umahi had previously threatened to revoke poor-performing contracts on April 25.

During the presentation of the routes of section 3A and the Trans-Africa Highway traversing Cross River through Ebonyi, Kogi, Nasarawa and Abuja, Umahi expressed disappointment at the slow pace of work on the Akwa Ibom and Cross River – Calabar-Itu section awarded to three contractors.

Umahi warned contractors who think it is still "business as usual" when handling government projects that the old order had changed, insisting that no amount of lobbying would save them if they failed to perform.

He reiterated the resolve of the Tinubu administration to complete all inherited road projects and the three legacy road projects under the Renewed Hope Agenda.

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