The Federal Government has revoked N870bn highway contracts awarded to three construction companies—Dantata & Sawoe, MotherCat, and RCC—due to non-performance. The contracts, which involved sections II, III, and IV of the dualization of the Obajana-Benin Road, were terminated by Minister of Works, Dave Umahi. This decision follows delays affecting 2,270 road projects nationwide.
Upon assuming office, Umahi inherited 2,600 uncompleted road projects, a figure reduced to 2,270 after completing 330 emergency projects with a N300bn appropriation. The revoked contracts, initially reviewed from N121bn to N870bn at N2bn per kilometer, were awarded on December 3, 2012, but experienced significant delays.
Umahi had previously threatened to revoke underperforming contracts and reiterated this during a presentation of the Trans-Africa Highway routes. He criticized Julius Berger Plc and other contractors for slow work, emphasizing the need for accountability and performance.
The Ministry of Works, under Umahi’s leadership, aims to complete inherited road projects and new projects under the Renewed Hope Agenda. The terminated contracts, related to sections of the Obajana-Benin road in Kogi and Edo States, faced delays due to contractors’ negligence, leading to the termination.
Ministerial engineers have been directed to take over the sites from the contractors and conduct joint measurements of completed work. The government will not tolerate contractors who fail to perform, emphasizing the need for serious commitment to infrastructure projects.
While the affected contractors could not be reached for comments, an official from the Association of Road Contractors criticized the minister for compounding issues in the sector. The official highlighted challenges such as cost inflation and inadequate solutions from the ministry.
Despite criticism, the government has awarded 51 contracts worth N6.27tn for various infrastructure projects, including roads, bridges, and airports. Significant projects include the reconstruction of the Koton-Karfe-Abaji road and the equalization of the Lokoja-Benin road, financed by BUA Cement under the tax credit scheme.
The Lagos-Calabar coastal highway, a 700-kilometer project passing through nine states, was awarded to Hitech Construction Company Limited. The project, along with other significant road and bridge contracts, reflects the government’s commitment to improving Nigeria’s infrastructure despite ongoing challenges.
