Contract Variations in FCT Projects Cause Concern for Minister Nyesom Wike

The Minister of the Federal Capital Territory (FCT), Barr. Nyesom Wike, has expressed deep concerns over the worrisome trend of contract variations in development projects within the nation's capital. He described the increasing incidences of contract variations as unacceptable and vowed to take drastic measures to address the issue. Wike made these remarks during his inspection of ongoing repair work at the Lower Usman Dam Water Treatment Plant in Bwari Area Council.

Highlighting the magnitude of the problem, Wike cited examples of astronomical variations in project costs, ranging from N10 billion to N120 billion and N50 billion to N200 billion. These alarmingly large discrepancies in project costs have raised significant questions about transparency, accountability, and the proper utilization of public funds.

Wike emphasized that he would not tolerate such irregularities and pledged to modernize the system to safeguard against future instances of contract variations. His main objective is to ensure that projects in the FCT are properly funded, prioritized, and completed within a reasonable timeframe.

The Minister acknowledged the issue of abandoned and unfinished projects within the territory and unveiled plans to tackle this challenge head-on. He disclosed that the FCT Administration intends to allocate dedicated funds to ten priority projects, effectively reducing the number of projects under consideration. This approach will ensure that each project receives adequate funding and attention, eliminating the current scenario where numerous projects are left incomplete due to funding constraints.

Wike voiced concern over a specific case involving the Gurara road, where the contract cost had already quadrupled from N20 billion to N50 billion within a span of three years. He mentioned that despite paying almost N50 billion, it remained insufficient to complete the project. Such situations underscore the urgent need for stricter oversight and control measures to prevent variations that jeopardize the successful completion of vital infrastructure.

Based on the Minister's directive, the FCTA will now embark on an overhaul of the entire procurement process. Any projects previously labeled as emergencies will be examined for validity. Where necessary, the procurement process will be restarted, ensuring transparency and giving other companies an opportunity to bid for the projects. This move aims to curtail irregularities and restore faith in the system.

Furthermore, Wike revealed a new approach to project financing by introducing an Internally Generated Revenue (IGR) framework. Under this system, specific projects will be linked to the FCT's revenue sources, enabling monthly monitoring of funds allocated to each project. The IGR mechanism will reduce the likelihood of project abandonment due to lack of funds and provide greater accountability in project management.

To bolster these efforts, the Minister announced that agreements had been reached with several companies responsible for FCT projects. These agreements establish payment schedules and timelines, ensuring a steady flow of funds to contractors. By addressing the issue of delayed payments, the FCT Administration aims to keep contractors motivated and committed to timely project completion.

Wike concluded by sharing his plans to kickstart the resurfacing of roads in Garki and Maitama areas, heavily affected by deterioration. This commitment highlights the Minister's determination to address the pressing infrastructure needs of the FCT and provide tangible results to the residents.

In summary, the FCT Minister's concern regarding contract variations in FCT projects signals a renewed drive for transparency, efficient project management, and timely completion. Through prioritization, improved funding processes, and increased oversight, the FCTA endeavors to rid the territory of abandoned and unfinished projects, ensuring the efficient use of resources and ultimately benefitting the residents of the nation's capital.

Source of content: OOO News 2023-09-07 News

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