Minister of Aviation Rejects N532 Billion Contract Variation for Abuja Airport Runway
The Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), has declared that his ministry will not accept an outrageous contract variation of N532 billion for the construction of the second runway at Nnamdi Azikiwe International Airport, Abuja. The project was initially awarded for N90 billion.
Keyamo made this stance clear during a budget defense session with the National Assembly Joint Committee on Aviation. He revealed that the contract has been revoked and will be reopened for fresh bidding by interested contractors.
According to the minister, after paying a N3.4 billion post-contract consultancy fee in May 2023, the ministry disbursed an additional N90 billion for the entire project, out of which N30 billion was released. However, the contractor, after receiving N30 billion and collaborating with the Federal Capital Territory Administration to compensate some settlers on the affected land, abandoned the site.
Keyamo explained that all efforts to get the contractor back to work failed due to the contractor’s demand for a contract variation of N532 billion from the original N90 billion.
“To us in the ministry, the variation is unacceptable and amounts to fraud. Therefore, we had no choice but to cancel the contract and call for fresh bids,” he stated.
Payment to Defunct Nigeria Airways Workers
The committee also queried why the N36 billion owed to workers of the defunct Nigeria Airways was not included in the ministry’s 2025 budget. Responding, Keyamo clarified that the responsibility for the payment has been shifted to the Ministry of Finance.
“The affected pensioners will soon receive their payments from the Ministry of Finance. This money is not meant for capital projects. I met with the leaders of the joint unions in November last year, and they agreed with the arrangement in place,” he explained.
Establishment of Aerospace Universities
The minister also defended the ministry’s plan to establish Aerospace Universities across Nigeria’s six geopolitical zones. Some committee members had suggested discontinuing the initiative, citing the presence of the Nigeria College of Aviation Technology (NCAT) in Zaria, Kaduna State.
Keyamo disagreed, stating: “Just as the Nigeria Law School, established in Lagos, has been decentralized, the same should apply to aviation training. While NCAT has existed since 1964, it has not been adequately decentralized, which is what the Aerospace Universities aim to achieve.”
2025 Budget Proposal
Keyamo presented the ministry’s 2025 budget proposal, amounting to N71.13 billion. Of this, N69.2 billion is allocated for capital projects, N1.147 billion for personnel costs, and N745.7 million for overhead expenses.
