Home Analysis Controversy Erupts Over Skyrocketing Costs of New Runway Project

Controversy Erupts Over Skyrocketing Costs of New Runway Project

 Initial Budget of ₦64.5 Billion Balloons to ₦532 Billion

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In 2010, the government awarded a ₦64 billion contract for the project but later canceled it after public outcry over inflated costs. The Nigerian Senate, under Senator Bukola Saraki, rejected the ₦64 billion proposal in October 2015.


BY ANTHONY OMOH


The revelation that the cost of the second runway project at the Abuja Airport has surged from an initial ₦64.5 billion to ₦532 billion has sparked outcries. The dramatic rise in cost, attributed to fluctuating currency values and escalating prices, raises serious concerns about transparency and fiscal responsibility. As Minister Festus Keyamo addressed a legislative assembly, many stakeholders expressed alarm over the nearly 700% cost increase, calling it unacceptable. In spite of this, the Abuja second runway project is still a much-needed aviation infrastructure and its delay due to these controversies, unfortunate

In a statement, Keyamo explained that the original budget for the runway project was ₦70 billion, with an additional ₦20 billion allocated for contingency. However, the cost has ballooned to ₦532 billion, which the Minister attributes to changes in the exchange rate, the devaluation of the naira, and rising prices. These factors have caused a significant deviation from the approved budget. As a result, Keyamo emphasized that such drastic cost variations could point to financial mismanagement, which the Nigerian leadership is keen to investigate.

The Minister’s statements have prompted a surge in public and legislative calls for greater oversight. Lawmakers and citizens demand an in-depth inquiry into the reasons behind the massive cost increases, citing poor planning or exploitation. The controversy pressures the government to act swiftly, restore public trust, and ensure efficient use of taxpayer money.

Keyamo responded to these calls for transparency by reaffirming his commitment to honesty and accountability. He stated, “I act with transparency, which is why I disclosed these figures. We cannot allow such variations to go unchecked. It is essential that we ensure all public spending is accounted for. Moreover, that projects are completed on time and within budget.” While the Minister’s assurances of transparency are welcome, the situation has nonetheless underscored the need for more stringent oversight.

The public outcry forced the government to face reality: the runway project, once progress, now symbolizes governance and fiscal accountability concerns.

With public trust at risk, the government faces mounting pressure to address the issue head-on, restore confidence, and ensure that future projects are managed with greater fiscal discipline and oversight. The next few weeks will be critical in determining how the authorities will respond to this crisis and what measures will be implemented to prevent similar occurrences.

The Abuja Second Runway: A History of Costs, Approvals, and Delays

The construction of a second runway at Nnamdi Azikiwe International Airport in Abuja has been a contentious issue for over a decade, with various administrations pushing for its completion despite repeated delays, cost concerns, and contractual issues. The following timeline provides an overview of the key developments surrounding this long-awaited infrastructure project, including approvals, budget escalations, and complications arising from resettlement disputes.

The Abuja Second Runway Under Hadi Sirika

During Senator Hadi Sirika’s tenure, the project gained momentum as authorities approved key measures and allocated funds for timely execution.

June 4, 2020 – Federal Executive Council (FEC) Approves Consultancy Contract
In June 2020, the Federal Executive Council (FEC) approved ₦1.7 billion for consultancy services related to the design and planning of the second runway. This allocation aimed to fast-track the project, ensuring that the planning phase would be completed swiftly and effectively. Sirika emphasized the need for the second runway to address increasing passenger traffic and provide an alternative landing strip in emergencies.
March 23, 2022 – FEC Approves ₦92.12 Billion for Construction
The FEC approved ₦92.12 billion for the construction of the second runway in March 2022. The government awarded the contract to the China Civil Engineering Construction Corporation (CCECC). Sirika argued that the second runway was necessary for enhancing the airport’s operational capacity and ensuring the safety of passengers during peak times.
June 9, 2022 – Land Allocation for the Project
In June 2022, the Federal Capital Territory (FCT) Minister, Mohammed Musa Bello, handed over 12,000 hectares of land for the construction of the runway. This land allocation was part of a broader aviation development plan that also included the establishment of a maintenance, repair, and overhaul facility and an agro-allied cargo terminal.
October 2022 – March 2023 – Compensation for Displaced Settlers
To clear the land for construction, the government approved compensation for displaced settlers. While the exact amount remains undisclosed, estimates suggest that the compensation payouts ran into several billion naira. These compensation payments caused significant delays in the project’s timeline, as the government struggled to ensure that affected individuals received adequate compensation.
November 3, 2022 – Assurance of Project Completion
In November 2022, Sirika assured the National Assembly that the second runway would complete before the Buhari administration’s term ended in May 2023. Contractors fully mobilized, and the project remained on track for timely completion. However, despite these assurances, the project faced delays due to financial and logistical challenges.

The Abuja Second Runway Under Festus Keyamo

After the Buhari administration ended, the project continued under the leadership of Festus Keyamo. However, the runway faced new challenges, including drastic cost escalations and the possibility of contract revocation. The ongoing debate over the project has exposed deeper issues concerning the feasibility of its completion within budget and on schedule.

May 11, 2023 – FEC Approves Additional ₦3.4 Billion for Post-Contract Consultancy
In May 2023, the FEC approved an additional ₦3.4 billion to cover post-contract consultancy services to oversee the construction of the second runway. This allocation aimed to ensure that the project could be implemented smoothly despite financial and logistical obstacles. However, despite this funding approval, new issues arose, including significant cost overruns.
August 29, 2023-Federal Government settled long-standing ₦825 Billion compensation issues

The Federal Government settled long-standing compensation issues with the Jiwa Community, clearing a major hurdle for the second runway project. After extensive negotiations, the government agreed to a compensation package of ₦825,819,911.43, ensuring the community’s consent for construction to commence. As part of the agreement, 22 Jiwa Community graduates secured employment opportunities, reinforcing the government’s commitment to inclusive development. Keyamo and FCT Minister Nyesom Wike reassured local leaders that the project would stimulate economic growth through improved connectivity and infrastructure.

December 13, 2023-Keyamo Seeks Additional ₦81Billion

 Aviation Minister Festus Keyamo urged lawmakers to approve an additional N81 billion in the 2024 budget for Abuja’s second runway. He emphasized that the funding, along with an earlier N63 billion allocation, was crucial for completing the critical aviation infrastructure project. During the budget defense session, he highlighted the dangers of relying on a single runway for the nation’s capital, stressing the need for immediate action. He also advocated for enhanced safety measures, including acquiring modern screening machines for international airports to improve passenger security and operational efficiency.

January 2024 – Cost Escalation and Proposed Contract Revocation
By January 2024, the total cost of the second runway had escalated from ₦92.12 billion to ₦532 billion, representing a nearly 700% increase in project costs. The cost hike prompted discussions about potentially revoking the contract and reassessing the project. Keyamo and other stakeholders questioned whether the escalating expenses justified the runway’s cost efficiency.
2024 – Concerns Over Project Feasibility
The possibility of revoking the contract and re-evaluating the project’s budget has sparked renewed concerns over the runway’s feasibility.If the government revokes the contract, the delays will further extend the completion timeline, setting back the aviation sector’s development plans.The public’s confidence in the project has been shaken, and many are calling for greater transparency in its execution.

Historical Cost Comparisons and Ongoing Controversies

The Abuja second runway has consistently faced scrutiny over its escalating costs, with comparisons to similar infrastructure projects raising questions about the project’s financial efficiency. When compared to other international airports, the runway’s cost appears disproportionately high, which has prompted further public scrutiny and demands for a comprehensive review.

In 2010, the government awarded a ₦64 billion contract for the project but later canceled it after public outcry over inflated costs. The Nigerian Senate, under Senator Bukola Saraki, rejected the ₦64 billion proposal in October 2015, citing excessive expenses.

Meanwhile, international comparisons highlight further cost discrepancies. For example, Heathrow Terminal 5’s four-lane, 4km runway cost less than ₦25 billion, far less than the Abuja second runway’s current cost. Similarly, Gombe Airport’s 3.66km runway cost only ₦8.2 billion, and Bauchi and Akwa Ibom Airports cost ₦12 billion and ₦18 billion, respectively.

These comparisons further raise questions about the inflated cost of the Abuja second runway and have led to renewed calls for a thorough investigation into the financial management of the project. Stakeholders, including aviation experts and legislators, have expressed concerns about the efficiency of the government’s budget allocations and the escalating cost of the project.

Ongoing Challenges and Future Prospects

The Abuja second runway project remains one of Nigeria’s most debated infrastructure projects. Sirika’s tenure secured key approvals and funding, while Keyamo’s administration faces cost escalations and growing calls for a project reassessment. The cost increases, coupled with concerns about feasibility, have added to the project’s long history of delays. As the aviation sector awaits resolution, stakeholders demand cost efficiency, accountability, and transparency in managing this critical infrastructure project. With expected delays and financial challenges, the runway’s future remains uncertain, making a transparent solution more urgent than ever.

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