The Federal Government has ordered the termination of the rehabilitation contract for the Lokoja–Shintaku–Dekina–Anyigba road, initially awarded to TEC Engineering Company Nigeria Limited in 2022, after the project achieved only 1.04 percent completion despite an advance payment of ₦1 billion.
It also announced plans to review the contract for the Okene–Ajaokuta–Itobe dual carriageway in Kogi State, awarded the same year to CCECC Nigeria Limited and originally scheduled for completion in 2024, but still incomplete.
According to the Minister of Works, Engr. Dave Umahi, in a statement released by his Special Adviser on Media, Barr. Orji Uchenna Orji, these measures are part of the administration’s drive to establish a sustainable framework for funding and completing projects carried over from past governments.
According to the statement: “His Excellency reached a mutual agreement with the contractors handling the rehabilitation of Lokoja-Shintaku-Dekina-Anyigba road and the reconstruction of Okene–Ajaokuta–Itobe dual carriageway in Kogi State on the way forward towards rejigging project delivery roadmap with respect to the projects which were awarded in 2022 to CCECC Nig Ltd and TEC Engineering Company Nig Ltd and which were meant to have been completed in 2024.”
He said the decision was taken during a meeting with the contractors and the Works Minister in Abuja on Thursday.
He continued: “Minister frowned at the delay of the contractors in achieving the key deliverables of the projects within the timelines and financial resources made available by the Federal Government. He emphasised that the Renewed Hope administration of the President of the Federal Republic of Nigeria, His Excellency, Bola Ahmed Tinubu, is committed to road infrastructure revolution anchored on the core values of quality, speed, and value for money in project delivery.
“On the contract for the rehabilitation of Okene-Ajaokuta-Itobe carriageway in Kogi State handled by CCECC Nig Ltd, he noted that the project was awarded in 2022 with a length of 52.27km, but the contractor has only achieved 1.97% completion (binder) on one alignment despite receiving ₦2.5 billion advance payment. He therefore directed the Director, Highway North Central, to issue a warning letter to the contractor to, within 30 days, resume work on the site 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 to procure the remaining section of the project for enhanced funding and execution.
“On the contract for the rehabilitation of Lokoja-Shintaku-Dekina-Anyigba road with a spur from Dekina to Ugbabo in Kogi State, handled by TEC Engineering Company Nig Ltd, the Honourable Minister noted that the contract was awarded in 2022 but recorded only 1.04% completion despite receiving ₦1 billion as 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 milestones completed and the job would be terminated on a mutual basis. It was further directed that the assessment for the funds already released shall be based on the old rate, while the assessment for the funds to be accessed under the year 2025 budget shall be based on the new rate.
“The Honourable Minister also directed that the consultancies for both contracts be mutually terminated pending when a new contract is procured on the projects.
“The meeting was attended by key officials of the Federal Ministry of Works, including Engr. I. D. Daikwo, Director, Highway North Central, Engr. I. U. Usman, Deputy Director, Highway North Central, Mr. Mohammed A. Ahmed, Director, Press and Public Relations, and Engr. Gana Musa Patiko, Federal Controller of Works, Kogi State. Others in attendance were the representatives of the contractors, Mr. Shaun, Marketing Manager of TEC Engineering Company Nig Ltd, and Mr. Zhou, the Senior Executive Director of CCECC Nig Ltd; the project consultants, including Mr. Sesan Adeboyejo and Engr. Ene Wakama, as well as the Honourable Commissioner for Works, Kogi State, Hon. Engr. Muhammed A. Yusuf, who represented Kogi State Government.”
