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Nairametrics
Home Sectors Real Estate and Construction

Abuja–Lokoja highway: FG may revoke N56 billion contract for slow progress

Caleb Obiowo by Caleb Obiowo
September 21, 2025
in Real Estate and Construction, Sectors
Group of workers fixing Highways
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The Federal Government has given official notice to the contractor handling the N56 billion section of the Abuja–Lokoja highway over delays in project execution.

The warning came during an inspection of the ongoing works by the Minister of Works, David Umahi, according to the News Agency of Nigeria (NAN). Umahi stated that the government expects immediate acceleration in the pace of work or risks revoking the contract.

He warned that should progress remain slow by November, the contract would be discontinued and reassigned to other contractors who can deliver.

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The inspected section of the highway spans 53 kilometres and is scheduled for completion by April 2026. Although originally designed to be paved with asphalt, the contractor chose to use concrete at the same cost, recognizing it as a more durable option.

Umahi commended the contractor for the quality of work done but expressed concern over the slow pace. He explained that payments would be made based on milestone completion, and sections of the contract could be divided and awarded to other contractors if targets were not met.

“The Federal Government says it will revoke the contract for the construction of the Abuja-Lokoja highway if work on the critical road is not significantly accelerated. 

“Minister of Works, David Umahi, issued the warning to the contractor handling the project, during an inspection tour of the ongoing reconstruction works on Saturday in Abuja,” the NAN report read in part. 

It further quoted Umahi saying, “We are going to agree on what you can finish in the next one year, and we will agree on milestone completion. 

“If you complete from here to there, you will get paid. For those who cannot meet up, we will divide their jobs and give them to those who can. 

“We are giving you an advanced notice, and the advanced notice is that you should start another gang. If I come again in the month of November, and the thing is still like this, I will discontinue the job.” 

More insights  

During the inspection, Umahi emphasized the government’s support for indigenous contractors, highlighting that their quality work demonstrates their ability to compete with expatriates.

  • He assured that outstanding payments would be settled within 30 days to motivate faster delivery.
  • He also noted that another 86-kilometre section of the highway is being procured and that if the current contractor improves pace, they could be included in that next phase.

Minister of State for Works, Bello Goronyo, reiterated that the highway is one of the administration’s priority projects. He urged the contractor to meet deadlines, stressing that funding is available and no excuses would be accepted.

What you should know 

Earlier in March, the Federal Executive Council (FEC) approved N733 billion for the completion of major road projects across Nigeria.

  • Among these projects was the N56 billion section of the Abuja–Lokoja highway, which is currently under scrutiny for slow progress.
  • Other roads that received FEC’s approvals included the Abuja-Kaduna-Zaria-Kano road (N507 billion for Section 2, spanning 82 km), the dualisation of Section 2 of the Ibadan-Ilorin road in Oyo State (N147 billion), the Odupani-Itu-Idedem Item road connecting Cross River and Akwa Ibom States (N55 billion), and a flyover at Abakpa, Enugu (N24 billion).

Minister of Works David Umahi stated that contracts would be closely monitored, with milestone-based payments and possible reassignment to ensure timely completion, emphasizing that the Abuja–Lokoja highway section remained a priority for the administration.


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Tags: Abuja-Lokoja highwayDavid UmahiFG
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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