The Federal Government has officially terminated the 98km Oyo-Ogbomoso Road contract previously awarded to Reynolds Construction Company (RCC).
Minister of Works, Dave Umahi, announced the decision on Thursday during a Federal Roads Stakeholders’ engagement in Ibadan, Oyo State, themed, “Enhancing Federal Roads in Oyo State: Challenges and Sustainable Solutions.”
Umahi revealed that the contract would soon be re-awarded to a new contractor.
The Oyo-Ogbomoso road project has faced significant delays, resulting in numerous accidents, loss of lives, and economic setbacks for traders and farmers who rely on the road as a crucial link between the northern and southern regions of the country.
In a related development, the Federal Government also terminated the Obajana-Benin Road contracts with three companies—Mothercat Ltd, Dantata & Sawoe Construction Ltd, and RCC Ltd—due to poor performance. The government cited the contractors’ “failure, neglect, and/or refusal to fulfill their contractual obligations,” which had caused delays and led to the expiration of the contracts.
The government had previously terminated a ₦740bn contract with Julius Berger (Nig.) Plc for the rehabilitation of the 82km Abuja-Kaduna dual carriageway, also due to non-performance.
Umahi expressed frustration over delays in mobilizing for projects, despite approved funding from the Federal Executive Council, which he said was causing significant hardship for road users. He warned that the Ministry of Works would not tolerate unprofessionalism or sabotage from contractors and would take swift action to terminate underperforming projects.
“We will not hesitate to terminate projects that are funded but remain non-performing,” Umahi emphasized.
