Nigeria’s Aviation Minister, Festus Keyamo, has firmly rejected the proposed N532 billion adjustment to the contract for the second runway at Nnamdi Azikiwe International Airport, Abuja. This dramatic increase from the original contract sum of NGN90 billion within just two years has raised significant concerns about financial prudence. Keyamo emphasized the Federal Government’s commitment to transparency and accountability, particularly in projects of national importance like the Abuja runway expansion. “The variation from N90 billion to NGN532 billion within a space of two years is unacceptable. The option I have is to cancel the contract. I will not allow any contractor to hold the government to ransom,” Keyamo stated.

 He said this while defending the Ministry of Aviation and Aerospace Development Budget before the Joint National Assembly Aviation Committees. Addressing the issue, Keyamo described the proposed variation as both unreasonable and unjustifiable, reiterating his firm stance against approving such terms. He explained that a cost escalation of this magnitude could not be defended, even under the most favorable circumstances. “This country cannot accept unreasonable variations. We are responsible stewards of public resources, and the contract will not proceed under these terms,” he declared. Consequently, the minister announced that fresh bids would be invited if necessary, ensuring the project adheres to the government’s principles of efficient resource management.

Keyamo highlighted President Bola Tinubu’s disapproval of inflated contract variations, which he described as potential avenues for fraud. “The President himself does not like this. He has consistently expressed his disapproval of variations of this nature, and I am fully aligned with his position,” Keyamo noted. According to the minister, rejecting inflated costs sends a clear message that public funds will not be mismanaged. Furthermore, he assured stakeholders that viable alternatives are being actively considered to keep the project on track.

The minister outlined several options under review, including public-private partnerships (PPP) with interested foreign firms and securing special funding arrangements. Notably, two Chinese companies have expressed interest in financing the second runway project upfront, with repayment terms over an agreed timeline. “Some companies have proposed funding it through public-private partnerships, and we are actively exploring these options,” Keyamo added. By engaging international partners, the government seeks to complete the project without compromising financial accountability.

Despite the challenges, Keyamo reiterated the importance of completing the second runway within the current administration’s tenure. He acknowledged that achieving this milestone would significantly enhance the airport’s operational efficiency and boost Nigeria’s aviation sector. “We need this project completed during the lifetime of this administration. It would be a credit to us and the oversight committee,” Keyamo emphasized. However, he maintained that unreasonable variations in contract costs would not be tolerated, regardless of the urgency.

The second runway at Abuja International Airport has long been recognized as a critical infrastructure project, designed to expand capacity and improve aviation safety standards. The unexpected escalation in costs has prompted a reassessment of the project’s execution strategy. By rejecting the proposed NGN532 billion adjustment and exploring alternative solutions, the Federal Government reaffirms its dedication to prudent financial management and efficient service delivery.

In conclusion, the rejection of the proposed N532 billion adjustment variation underscores the government’s unwavering commitment to fiscal discipline and accountability in public infrastructure projects. Festus Keyamo’s decisive actions reflect a broader push to ensure that national resources are utilized effectively, without succumbing to undue pressure from contractors. With alternative financing options under review, the administration remains focused on delivering the second runway project as a legacy of responsible governance and efficient public resource management.