David Umahi
Ministry of Works issues ultimatum to Lokoja-Benin Road contractors to sign revised contract or risk termination
The Minister of Works, David Umahi, has issued an ultimatum to contractors handling the Lokoja-Benin and Obajana Junction-Benin Road projects in Kogi and Edo States to sign the revised contracts immediately or face termination by the Ministry of Works.
This directive was conveyed during a meeting at the Ministry’s headquarters in Mabushi-Abuja with representatives from Mothercat Ltd, CCECC Ltd, Dantata & Sawoe Ltd, CGC Ltd, and RCC Ltd, as reported on the Ministry’s website.
Umahi expressed frustration with contractors’ reluctance to sign updated documents despite prior agreements on revised specifications.
Umahi noted that the project’s budget had escalated from N121 billion to over N870 billion before President Tinubu’s tenure. Upon his appointment, he paused approvals to review costs, leading to a rescope after discovering that some sections were unsuitable for asphalt.
- “So, the position of the government is that if you are not signing the contracts between today and tomorrow, you will forgo the jobs. You can go to court. We will not enter into any condition for further negotiation.
- “This contract is over N2 billion per kilometer. You don’t have equipment to do the work. Let me even assure you that if you are signing the contract, you will sign it alongside the basic rates. You sign it alongside the timetable, and you deploy in three sections, or I will terminate the job. Enough of playing with the psyche of the people,” Umahi stated.
More insights
- The Minister of Works stated that the revised plan for the Lokoja-Benin and Obajana Junction-Benin road projects, which incorporates both concrete and asphalt, has been approved by the contractors and submitted to the Bureau of Public Procurement (BPP) and the Federal Executive Council (FEC).
- Additionally, Umahi tasked the Ministry with conducting a thorough audit of all ongoing projects within seven days to assess the current work status, as well as the capabilities of the personnel and equipment utilized by the contractors.
- He expressed concern over the practice of awarding contracts to firms lacking necessary manpower and equipment and issued a stern warning that all future contracts must specify rates and timelines at signing.
