FG terminates contracts with three companies over non-performance

The Federal Ministry of Works has terminated contracts with three construction companies—Mothercat Ltd, Dantata & Sawoe Construction Ltd, and RCC Ltd—due to non-performance on the dualization of the Obajana-Benin road project.

This decision was announced on Monday by Orji Uchenna, the Special Adviser (Media) to the Minister of Works.

The Minister of Works, David Umahi, cited the inordinate delays and failure of these companies to fulfill their contractual obligations as the primary reasons for the termination.

He emphasized that the contracts, awarded in 2012 and worth billions of naira, were abandoned, leaving road users to suffer due to the poor condition of the road.

Umahi directed engineers to take over the sites immediately and measure the work done to facilitate the transition from the companies.

He warned that the government would not tolerate acts of unseriousness and sabotage by contractors.

“Going forward, all funded but non-performing contracts shall be terminated,” he stated.

This move is seen as a decisive step by the Renewed Hope administration to tackle Nigeria’s infrastructure challenges.

“We will not condone any act that will hinder our progress. We are determined to change the narrative of Nigeria’s road infrastructure,” Umahi asserted.

The terminated contracts include:

  • Contract No. 6136 with Mothercat Ltd for the dualization of Obajana-Benin road, section II (Okene-Auchi) in Kogi/Edo State.
  • Contract No. 6137 with Dantata & Sawoe Construction Ltd for the dualization of Obajana-Benin road, section III (Auchi-Ehor) in Edo State.
  • Contract No. 6138 with RCC Ltd for the dualization of Obajana-Benin road, section IV (Ehor-Benin) in Edo State.

The Federal Ministry of Works’ decision to terminate these contracts reflects a commitment to ensuring timely and effective infrastructure development across the country.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.