Minister of Aviation and Aero Space Development, Festus Keyamo (SAN), on Wednesday declared that his ministry has rejected outrageous contract variation of N532billion from N90billion awarded to contractor handling the 2nd runway of Nnamdi Azikiwe International Airport, Abuja.
Fielding questions from federal lawmakers during budget defence session with the National Assembly Joint Committee on Aviation, he said the contract has been revoked for fresh bidding by interested contractors.
He said: “After N3.4billion post contract consultancy fee paid to contractor handling the project in May 2023, N90billion was later paid in the same year for the whole contract out of which N30billion was released.
“The contractor after receiving the N30billion and joined the Federal Capital Territory Administration to compensate some settlers on the affected land, left the site.
“All efforts made thereafter to get the contractor back to site proved abortive on the grounds of unacceptable contract variation being demanded for.
“The contractor in question, is demanding for contract variation of N532billion from the original sum of N90billion the contract was awarded for.
“To us in the ministry, the said variation is nothing but fraud, leaving us with no option than to cancel the contract and call for fresh bids.”
Members of the committee also asked the minister why the N36billion owed workers of the defunct Nigeria Airways , was not reflected in the ministry’s 2025 budget for required payment.
The minister in his response ,said payment for the N36billion has been shifted to the Ministry of Finance since the money is not meant for capital project .
“The affected pensioners would soon get their dues from the Ministry of Finance and not from the Ministry of Aviation and Aerospace Development. I met with leaders of the joint unions on this in November last year and they agreed to arrangement put on ground,” he said.
He, however, disagreed with suggestion made by some members of the committee that establishment of Aerospace University across the six geo – political zones should be discontinued since there is one in Zaira, Kaduna State already.
According to him, as the Nigeria College of Aviation Technology, NCAT was established in 1964, so also was the Nigeria Law School established in Lagos.
“While the Nigeria Law School has been decentralized, the Aviation College in Zaria has not been properly followed suit, which the Aerospace Universities are aimed at,” he said.
He thereafter presented the 2025 budgetary proposal of the ministry to the committee which according to him, is N71.13billion, out of which N69.2billion is earmarked for capital projects, N1.147billion for personnel cost and N745.7million for overhead.
However, the joint committee through its chairman, Senator Abdulfatai Buhari (APC Oyo North), told the minister that approval would be given the budgetary proposal after submission of full details on state of 124 projects being executed by the ministry.
“Historical background and current status of all the ongoing projects being executed by the ministry are needed as requested for, by this committee, latest by next week, for approval of the presented budget proposals,” he said.