FG threatens to revoke MTN’s N202bn Enugu-Onitsha road contract

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By Our Reporter

The Federal Ministry of Works has issued a stern warning to telecommunications giant MTN over delays in the N202 billion Enugu-Onitsha Expressway project. The Ministry demanded that MTN commits to paying contractors at least ₦15 billion monthly for the next 10 months or face termination of the contract.

The project is being executed under the Federal Government’s Tax Credit Scheme and handled by RCC Ltd.

The warning came after a high-level meeting in Abuja, chaired by the Minister of Works, Engr. David Umahi, and attended by members of the Anambra and Enugu Caucus of the 10th National Assembly, along with representatives of MTN.

A statement issued by Hon. Orji Uchenna Orji, the Minister’s Special Adviser on Media, read in part:

“The Federal Ministry of Works will write to MTN demanding an irrevocable commitment to pay contractors a minimum of ₦15 billion monthly for the next 10 months to fast-track the completion of the Enugu-Onitsha Expressway. Failure to comply will result in the termination process being initiated.”

The Ministry expressed dissatisfaction with the slow pace of work and financial delays, which have reportedly caused a cost escalation of over 100%.

Further resolutions included:

Engaging three contractors to complete the 79 km section of the road within the initial ₦202 billion contract sum.

Awarding the remaining 72 km to other contractors through due process, with MTN and RCC eligible to bid.

The Ministry noted that MTN’s handling of the project did not align with the Tax Credit Executive Order. Officials warned that continued delays could increase the project cost by over 200%, which is unacceptable to the Federal Government.L
The meeting was attended by key stakeholders.
© Vanguard.

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