HomeFeaturesMTN Risks Losing Contract Over Enugu-Onitsha Road — Minister

MTN Risks Losing Contract Over Enugu-Onitsha Road — Minister

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Minister of Works, David Umahi, has directed telecom giant MTN to remit N15 billion monthly to contractors working on the Enugu–Onitsha Expressway, warning that failure to comply could lead to the revocation of the project contract.

Umahi’s order came during a meeting with representatives of the Anambra and Enugu caucus of the 10th National Assembly, who sought the Federal Government’s intervention in expediting the Enugu–Onitsha Expressway project. The road construction, handled by RCC Ltd, is financed by MTN under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

The disclosure was made in a statement issued Thursday night by Uchenna Orji, the Special Adviser on Media to the Minister of Works.

“It was resolved, among other things, that the Federal Ministry of Works would write the MTN to demand that it commit irrevocably to pay contractors on the project a minimum of ₦15bn every month for the next 10 months to enable them to fast-track the completion of the road, failing which the ministry would initiate the termination process of the project. It was further resolved that MTN would need three contractors to do the 79km within the original contract sum of ₦202bn.

“Furthermore, the remaining 72km of the road shall be awarded to other contractors through due process. MTN and RCC would be invited to bid too. The ministry lamented that what MTN is doing is not in line with the Tax Credit Executive Order,” the statement stated.

It added, “It was noted in the meeting that the delay on the job, which was due to poor funding and poor contract execution, had resulted in over a 100 per cent increase in the project cost, and to allow MTN more than 11 months on the job could further push the contract to increase by over 200 per cent and this is unacceptable to the Federal Government.”

Read also: Telecoms Price Hike: Stock Market Sees Uptick As MTN Shines

Acknowledging the tragic loss of lives on the unfinished stretches of the expressway, including the recent tanker explosion at Ugwu Onyema that left many dead, the minister extended his condolences. He reaffirmed the administration’s unwavering commitment to improving road infrastructure in the South-East and across the country, urging citizens to have faith in President Bola Tinubu’s efforts.

He stated that President Tinubu’s administration has elevated the South-East’s standing within Nigeria’s political hierarchy, ensuring its voices and interests are well represented.

He said, “Again, we should also be grateful to Mr President. Since he became President, we’ve not heard about farmers and herders clashing in the South-East. Mr President inherited 2,064 projects, totalling about N13tn, and today, those projects will be over N20tn, because of the floating of the naira and the removal of the fuel subsidy. It’s nobody’s fault. But by his good heart and commitment to rewriting the story of this country, he will make Nigeria great again.

“And so, we want the National Assembly members, and of course, South-East stakeholders, to please stand up and commend the President at all times, because this is not a party thing. And I can beat my chest and say that irrespective of party, no other person will have the heart to do what Mr. President is doing for the people of South-East.”

Speaking during the event, the leader of the delegation and Minority Whip of the Senate, representing Enugu West, Osita Ngwu, commended the minister for the scale of road construction, rehabilitation, and maintenance nationwide; however, he expressed worries that some of the projects were not receiving adequate funding required for completion in a record time.

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