Lawmaker, ministry officials accused of inflating road contract cost from N9.8 billion to N54.3 billion

A civil engineering company, DC Engineering Ltd, has alleged that a lawmaker in the House of Representatives and officials of the Ministry of Works inflated the contract for constructing Ijebu-Igbo/Ita Ibadan Road.
Ade Adedeji, executive director of the company, said this when he appeared before the House of Representatives ad hoc committee on non-construction and rehabilitation of Ijebu-Igbo/Ita Ibadan Road in Abuja on Friday.
He said the contract was inflated from N9.8 billion to N54.3 billion, saying that the 41km road project was awarded to the company in 2018 at N9.8 billion with a completion period of two years.
Mr Adedeji said it took the ministry five years, from 2018 to 2023, to release the 15 per cent mobilisation fee of N1.3 billion.
He said the non-release of funds was responsible for the slow pace of work, saying that the 15 per cent mobilisation fee was paid in instalments.
He added that the last instalment was paid a few weeks ago.
Mr Adedeji said the company approached the ministry to review the contract from N9.8 billion to N14 billion due to inflation, but the ministry refused.
However, he said the company was surprised to notice that the same ministry had re-awarded the contract to another company, AREATECH Construction Ltd, at N54.3 billion without terminating the original contract.
In his presentation, Adedamola Kuti, the director, Highways South, Ministry of Works, who represented the ministry, said it terminated the contract in September 2022.
He was, however, silent on the request to review the contract to N14 billion by DC Engineering.
Mr Kuti also denied the allegation that a lawmaker was involved in the review of the contract sum.
Rep. Kwamot Laori, the committee’s chairman, said it was not out to witch-hunt people but to ensure the root causes of the failure of the road project were dug out.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

States
Osun election reflects people’s will, strengthens Nigeria’s democracy: Tinubu
He urged the governor to unite the people of the state and mobilise them for growth, stability and socio-economic progress, irrespective of their political choices.

Hot news Home top
Osun APC weighs legal action, says election process not over
The All Progressives Congress (APC) in Osun says its leadership is currently studying the results of Saturday’s governorship election

NationWide
NDLEA arrests India-bound businessman, recovers N3.6 billion worth of cocaine
The agency said the 48-year-old businessman was arrested at the Murtala Muhammed International Airport (MMIA), Lagos, while heading to New Delhi.
![The Nigeria Internet Registration Association [NIRA]](https://gazettengr.com/wp-content/uploads/ftghito.png)
NationWide
NiRA pushes affordable .ng domains for SMEs
Mr Akinsanya said the initiatives would encourage more Nigerian businesses to establish digital identities using the .ng domain.

States
Gov Adeleke calls for healing after divisive Osun poll
Mr Adeleke observed a minute’s silence for victims of the pre-election violence and urged community leaders and traditional institutions to embark on peace-building initiatives.

NationWide
My alliance with Obi can defeat any party in 2027, says Kwankwaso
The former governor said the decision for both of them to come together was to produce a balanced ticket.






