JUST IN: Federal Govt Threatens Termination of Road Projects in Kogi, Cites Delays
The Federal Government has issued a 30-day termination notice to contractors handling the rehabilitation of Lokoja-Shintaku-Dekina-Anyigba Road and the reconstruction of Okene-Ajaokuta-Itobe dual carriageway in Kogi State due to significant delays in project execution.
Minister of Works, Engr. David Umahi, disclosed this on Wednesday after a meeting with the contractors in Abuja, according to a statement by his Special Adviser on Media, Barr Orji Uchenna Orji.
The projects, awarded in 2022 to CCECC Nig Ltd and TEC Engineering Company Nig Ltd with a 2024 completion timeline, have shown minimal progress.
Umahi expressed dismay at the contractors’ failure to meet key deliverables despite substantial financial support. For the 52.27km Okene-Ajaokuta-Itobe carriageway handled by CCECC Nig Ltd, only 1.97% completion (binder) has been achieved on one alignment despite a ₦2.5 billion advance payment. “He therefore directed the Director Highway North Central to issue a warning letter to the contractor to resume work on the site within 30 days using the old rate to achieve a milestone that is commensurate with the money they received, after which the balance of the job yet to be done would be mutually terminated to enable the Ministry procure the remaining section of the project for enhanced funding and execution,” Umahi said.
Similarly, the Lokoja-Shintaku-Dekina-Anyigba road, awarded to TEC Engineering Company Nig Ltd, has recorded only 1.04% completion despite a ₦1 billion advance payment. “It was directed that the contractor should lay 3km asphalt by December 2025 after which a final account would be made based on the milestone completed and the job would be terminated on mutual basis,” the Minister added.
Umahi further directed that funds already released be assessed at the old rate, while funds under the 2025 budget will use the new rate. “The Minister also directed that the consultancies for both contracts be mutually terminated pending when a new contract is procured on the projects,” the statement concluded.