There is growing outrage among aviation stakeholders and Nigerians as the contractor handling the construction of the second runway at Nnamdi Azikiwe International Airport, Abuja, demands an astonishing 700 percent increase in the contract value. Originally awarded at N90 billion in 2023, the contractor is now requesting N532 billion, a sum that has sent shockwaves through both the aviation industry and the general public.
The development has raised alarms of possible corruption and mismanagement of public funds, with many questioning how such a massive increase could be justified for a project that has already been delayed and struggled with budget discrepancies. The proposed hike is expected to be included in the 2025 budget, sparking an intense debate in the National Assembly and the aviation sector.
The Minister Rejects the Unjustifiable Surge
The Aviation Minister, Festus Keyamo, was quick to reject the proposed contract variation during a recent budget defense session with the joint Aviation Committee of the National Assembly in Abuja. Keyamo described the demand as fraudulent and said that the Ministry would have no choice but to cancel the contract and open the process up to fresh bids.
“In May 2023, a post-contract consultancy fee of N3.4 billion was paid to the contractor. Subsequently, N90 billion was approved for the entire contract, of which N30 billion was released. However, after receiving this amount, the contractor only partnered with the Federal Capital Territory Administration (FCTA) to pay compensations to some settlers before leaving the site. Despite several attempts to get the contractor back to the site, they refused to return, citing unacceptable contract variation demands,” Keyamo revealed at the budget session.
He further stated that the demand for a whopping N532 billion was nothing but a scam. “It is not just unacceptable; it is a fraud that cannot be allowed to stand,” Keyamo emphasized.
A Deepening Crisis in the Aviation Sector
This controversial demand has ignited a firestorm of anger among key players in Nigeria’s aviation industry. Analysts and industry professionals have pointed out that the contract’s escalation from N64 billion in 2010 to N532 billion today represents an alarming rise that bears no correlation to the actual cost of construction. The public and industry experts alike are calling for the National Assembly to investigate the matter thoroughly and ensure accountability for public funds.
Many have questioned the wisdom of awarding such a massive contract increase without clear justification. The demand for such an astronomical increase in costs is seen by some as part of a wider problem of corruption and inefficiency in government contracting processes, especially in the aviation sector.
Calls for Transparency and Accountability
Commenting on the situation, Group Captain John Ojikutu (retired), the managing director of Centurion Aviation Security, raised further concerns over the sudden price surge. “Who authorized this staggering increase in the cost of the second runway? We need to dig into the history of the project. Initially, it was N64 billion in 2010, then N89 billion in 2016. Now, after six years, we’re seeing a 700 percent increase. This demands investigation,” he urged.
Ojikutu also pointed out that the project’s cost was still far below what would be expected for an 8km stretch of runway, including a taxiway. He noted, “This could be a plan to inflate the project costs for personal gain, which is exactly why the National Assembly must hold those responsible accountable.”
He continued, “The Ministry of Aviation and its successive ministers seem to have overstepped their roles by taking over functions meant for CEOs of aviation agencies. This needs to be addressed if Nigeria is to have any hope of real development in the sector.”
The concerns voiced by Ojikutu and other stakeholders reflect a deep-seated frustration with the way public infrastructure projects are being managed. The massive increase in the cost of the Abuja second runway is seen by many as part of a wider pattern of questionable practices in government contracts, which have long been a source of concern in Nigerian politics.
A Deeply Political Issue
The controversy surrounding the second runway project is not just an economic and infrastructural issue but also one steeped in political undertones. Some have suggested that the National Assembly should investigate the political figures involved in awarding and increasing the contract’s value.
Senator Hope Uzodinma, the former Chairman of the Aviation Committee, is noted for his role in initiating the Abuja runway project in 2007 when the budget was initially set at N64 billion. However, concerns have been raised about the role of politicians in inflating the cost of the project to near unmanageable levels.
As Ojikutu pointed out, the project has faced successive increases in its budget with little explanation for why it has reached such astronomical figures. “What happened to the original cost of N64 billion? Why is the budget now skyrocketing to over N500 billion? We must find out who is behind this sudden hike,” he urged.
The call for accountability has found support from a wide range of Nigerians, including civil society groups and aviation experts. These groups have pressed the National Assembly to dig into the archives and examine how the budget for the second runway has evolved over time. They argue that this could offer vital clues to understanding how such discrepancies came to be.
Urgency for Reform and Oversight
Many stakeholders in Nigeria’s aviation sector are urging the National Assembly to put its foot down and ensure that a thorough investigation is conducted into the entire second runway project. In particular, there is a growing demand for reforms in the way aviation contracts are awarded and managed in Nigeria.
“Public funds must be protected from misuse, and this project should be reviewed thoroughly to ensure transparency,” one aviation analyst remarked.
For now, all eyes are on the National Assembly as it prepares to address the matter and hold accountable those responsible for inflating the contract value. Until then, the future of the second Abuja runway project hangs in the balance, and Nigeria’s aviation industry continues to face heightened scrutiny over its management of public funds.
