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Cabinet officials

Minister Terminates Contract with Levant Construction Ltd Due to Non-Performance

Strategic Insights

— 2 min read

The Honourable Minister of Works, Sen. David Umahi, has terminated the contract with Levant Construction Ltd for the reconstruction of the Benin-Sapele-Warri Road (Section 1: Benin-Imasabor) due to non-performance. The minister expressed disappointment over Levant's failure to meet its contractual obligations, despite several warnings and interventions by the government.

Key Takeaways:

  • The contract with Levant Construction Ltd has been terminated due to non-performance, despite several warnings and interventions by the government.
  • The minister has directed the Permanent Secretary to formally terminate the contract and request repayment of the Advance Payment Guarantee (APG) from Levant's bank, failing which the matter would be referred to the Economic and Financial Crimes Commission (EFCC).
  • The minister has expressed satisfaction with the progress made by SKECC Nigeria Ltd and Geld Construction Ltd on their respective sections of the road project.
  • The Honourable Minister of Works has revealed that the Lagos-Ibadan road project was valued at N195 billion under the previous administration, and is now being completed by the current administration with an additional investment of N33 billion.
  • The minister has commended the Governors of Delta and Edo States for their interventions on certain sections of the road project.
  • The minister has debunked allegations of lopsidedness in the distribution of road projects across the country, citing numerous ongoing projects in the North.
  • The Renewed Hope administration of President Bola Ahmed Tinubu is committed to inclusive development, with 52 per cent of the four legacy projects located in the North and 48 per cent in the South.
  • The minister has highlighted several ongoing road projects in the North, including the Abuja-Kaduna-Zaria-Kano-Kano road, Sections I and III, valued at N252 billion, and the Sokoto-Zamfara-Katsina-Kaduna road, 750 kilometres, totalling N825 billion.
  • The minister has also highlighted several ongoing road projects in the South, including the Lagos-Calabar Coastal Highway, Sections I, II, and III, valued at over N3 trillion.

Statistics:

  • The contract sum for the Lagos-Ibadan road project under the previous administration was N195 billion, while the current administration is investing an additional N33 billion.
  • The value of the Abuja-Kaduna-Zaria-Kano-Kano road project (Sections I and III) is N252 billion.
  • The value of the Sokoto-Zamfara-Katsina-Kaduna road project is N825 billion.
  • The Lagos-Calabar Coastal Highway project has a total value of over N3 trillion.
  • The Kebbi axis has 258 kilometres of one carriageway, procured for about N958 billion.
  • The Sokoto axis has 120 kilometres of road, procured for N454 billion.

Sources:

  • Statement signed by Orji Uchenna Orji, Special Adviser on Media to the Minister of Works.
  • Official statement from the Ministry of Works.

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