The Minister of Works, David Umahi, has revoked the contract for the construction of the Ekim–Odukpani section of the Calabar–Itu Highway due to the contractor’s inability to meet performance expectations.
The project, previously handled by Raycon Construction Company, failed to comply with the agreed terms, prompting the minister’s decisive action.
Umahi announced the termination during an inspection tour of the highway on Saturday.
He stated that the ministry would issue a stop-work order to Raycon and carry out a joint assessment of the work completed so far.
“This job was awarded as an intervention contract, taken over from Julius Berger due to the unreasonably high cost they proposed,” Umahi explained.
“We are disappointed with the contractor’s poor performance, which clearly shows a lack of capacity. This project is beyond their capability, so termination is necessary to bring in a competent firm.”
The minister assured that a new contractor, capable of completing the work to the required standard, would be engaged.
The Calabar–Itu Highway, part of the larger Lagos–Calabar Coastal Highway, has faced persistent delays and slow progress.
Minister Umahi had previously warned other contractors, including SEMATECH and RCC, about slow mobilization and performance issues.
Despite substantial government funding, some sections of the highway have shown minimal progress, raising concerns over potential delays and prompting consideration of further contract terminations.
