FG Rethinks Abuja Runway Project as Contract Cost Soars to ₦532 Billion

As of February 17, 2025, the federal government is reviewing its approach to the construction of the 4.2-kilometer second runway at Nnamdi Azikiwe International Airport, Abuja, following a sharp increase in project costs. The contract, originally awarded to China Civil Engineering and Construction Corporation (CCECC) in 2009, has faced mounting financial challenges, including extensive consultancy fees and land compensation expenses.

During a recent budget defense session, Minister of Aviation and Aerospace Development, Festus Keyamo, addressed lawmakers, revealing that the project’s initial budget of N90 billion has now escalated to N532 billion due to cost variations. Keyamo expressed concerns over the significant price increase, suggesting potential fraudulent claims by the contractor. He indicated that the government may consider terminating the current contract and reopening the bidding process.

Providing further details on the project's financial history, Keyamo disclosed that a consultancy fee of N3.4 billion was paid in May 2023. The full contract was initially approved at N90 billion, but only N30 billion was disbursed. Following this partial payment, the contractor reportedly halted work, citing disagreements over contract variations.

Industry stakeholders have underscored the necessity of completing the second runway, emphasizing its role in reducing flight delays often caused by VIP movements in Abuja. Initially budgeted at N67 billion, the project has received various funding allocations over the years, including N10 billion in 2017 and N20 billion in 2022.

Amid the ongoing financial debate, the contractor has put forward a revised proposal, lowering the project cost to slightly above N300 billion. However, discussions are still ongoing, and no final resolution has been reached.

Tunde Moshood, spokesperson for the Minister of Aviation, confirmed that no definitive decision has been made regarding the contract. A meeting involving all key stakeholders is expected soon. Meanwhile, CCECC representative Zane Peng dismissed the reported N532 billion figure, asserting that it was inaccurate.

As the federal government navigates this complex infrastructure challenge, the future of the second runway project remains uncertain.