FG Terminates Okene-Ajaokuta-Itobe Road Contract with CCECC Over Delays
The Federal Government has terminated the contract for the reconstruction of the strategic 52.27 km Okene–Ajaokuta–Itobe dual carriageway in Kogi State, ending a three-year ordeal with China Civil Engineering Construction Corporation (CCECC) Nigeria Limited over what the Minister of Works, Senator David Umahi, described as “unacceptable delays and dismal performance.”
The termination, contained in an official statement issued Wednesday evening, was one of five major contract cancellations announced after a marathon project review meeting held on November 25. Contract No. 7648, awarded to CCECC on November 18, 2022, had recorded only 2.02 per cent physical progress limited to a binder course on a single alignment despite the project timeline having elapsed by 146.92 per cent and an advance payment of ₦2.5 billion already released to the Chinese firm.
“Nigerians are suffering daily on these roads. We can no longer tolerate excuses,” Umahi told journalists after the meeting. He disclosed that the termination was mutually agreed upon, but CCECC has been restricted to works commensurate with the advance payment received, pending final account reconciliation. The contractor has also been barred from further claims under the cancelled agreement.
The Okene–Ajaokuta–Itobe road is a vital link between the Ajaokuta Steel Complex, Itakpe Iron Ore Mining Company, and the Abuja–Lokoja–Okene expressway. Its near-abandonment has forced heavy trucks and commuters to navigate dangerous detours and flood-ravaged sections for years, drawing persistent outcry from Ebira communities and road users.
In the same sweep, the Ministry terminated four other contracts in Kogi State, including the 85 km Lokoja–Shintaku–Dekina–Anyigba rehabilitation (Contract No. 7239) handled by TEC Engineering Nigeria Limited, which achieved only 1 per cent progress after a 188.92 per cent time overrun. Sections of the Abuja–Lokoja highway also lost their contractors, bringing the total value of cancelled works in the state to tens of billions of naira.
President Bola Tinubu has approved emergency funding and direct procurement to fast-track re-awarding of the failed sections, with the Ministry targeting full motorability of the corridors by the first quarter of 2026. Contractors still on site have been handed non-negotiable December 2025 milestones, including a minimum of three kilometres of fresh asphalt overlay on viable sections.
The Ministry of Works says invitations for expression of interest on the re-awarded sections will be published within the next seven days, signalling the beginning of a renewed push to deliver the long-suffering roads under the Renewed Hope infrastructure agenda.