FG Terminates Oyo-Ogbomoso Road Contract Awarded To RCC
The Federal Government has officially terminated the 98km Oyo-Ogbomoso Road contract previously awarded to Reynolds Construction Company (RCC).
This announcement was made by the Minister of Works, Dave Umahi, on Thursday during a Federal Roads Stakeholders’ engagement titled “Enhancing Federal Roads in Oyo State: Challenges and Sustainable Solutions” in Ibadan, the capital of Oyo State. Umahi noted that the contract would soon be re-awarded to a new contractor.
The Oyo-Ogbomoso road project has faced significant delays, leading to numerous fatalities from accidents and economic losses for traders and farmers who rely on the route daily. This road is a crucial link between the northern and southern regions of the country.
In addition, the Federal Government recently terminated contracts for the Obajana-Benin Road, which had been awarded to three companies. The contracts with Mothercat Ltd, Dantata & Sawoe Construction Ltd, and RCC Ltd were canceled due to the companies’ failure to meet their contractual obligations.
The government cited the contractors’ “failure, neglect, and refusal to fulfill their obligations,” which led to delays and the expiration of the contracts due to the passage of time.
The Federal Government had also previously terminated a ₦740bn contract for the rehabilitation of the 82km Abuja-Kaduna dual carriageway with Julius Berger (Nig.) Plc for similar reasons.
Umahi expressed his frustration over the delays despite the approval of funds by the Federal Executive Council, stressing the hardship faced by road users. He emphasized that under his leadership, the ministry would not tolerate contractors who impede progress or show a lack of commitment.
He further warned that any underperforming projects funded by the government would be terminated without hesitation.
