By Comfort Chukwukelue
The Minister of Aviation and Aerospace Development, Festus Keyamo, has revoked the contract for the second runway of the Nnamdi Azikiwe International Airport, Abuja, following an attempt by the contractor to increase the project cost from N90 billion to N532 billion.

Speaking during a budget defense session with the National Assembly Joint Committee on Aviation on Wednesday, Keyamo described the demand for the 491% contract variation as fraudulent.
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“After paying a N3.4 billion post-contract consultancy fee in May 2023, the contractor was paid N30 billion from the N90 billion project sum,” Keyamo explained. “However, after using part of the funds to compensate settlers on the affected land alongside the Federal Capital Territory Administration, the contractor abandoned the site.”
Efforts to bring the contractor back to the project site were unsuccessful, with the contractor insisting on the inflated cost. “The Ministry had no option but to revoke the contract and open it for fresh bidding,” Keyamo stated.
Nigeria Airways Pensioners’ Payment Shifted to Finance Ministry
During the session, lawmakers questioned the omission of the N36 billion owed to pensioners of the defunct Nigeria Airways in the Ministry’s 2025 budget.
Keyamo clarified that the responsibility for the payment had been transferred to the Ministry of Finance. “This amount is not meant for capital projects, which is why it was excluded from our budget. I met with the joint union leaders in November 2024, and they agreed with the arrangement,” he said.
Aerospace Universities to Proceed Despite Opposition
The Minister also defended plans to establish Aerospace Universities in Nigeria’s six geopolitical zones, despite suggestions from some committee members to discontinue the initiative.
Keyamo argued that decentralizing aviation education was vital for national development, comparing it to the Nigerian Law School system, which expanded beyond Lagos.
“Since the Nigeria College of Aviation Technology (NCAT) in Zaria was established in 1964, it has not been decentralized like the Law School. The Aerospace Universities aim to fill this gap,” he explained.
2025 Budget Proposal
Keyamo presented the Ministry’s 2025 budget proposal of N71.13 billion, allocating N69.2 billion for capital projects, N1.147 billion for personnel costs, and N745.7 million for overhead.
The Joint Committee, chaired by Senator Abdulfatai Buhari (APC, Oyo North), requested full details on the status of 124 ongoing projects in the Ministry before approving the budget proposal.