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Home Business & Finance Business

Minister of works orders MTN to pay N15bn monthly or risk Enugu–Onitsha expressway contract revocation

Quadri Olaitan by Quadri Olaitan
February 1, 2025
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Minister David Umahi has ordered MTN to pay N15bn monthly to contractors for the completion of the Enugu–Onitsha Expressway, or face contract termination, after delays and funding issues

 

[dropcap]T[/dropcap]he Nigerian Minister of Works, David Umahi, has issued a stern directive to MTN, demanding the telecommunications giant pay a minimum of N15 billion monthly to contractors involved in the construction of the Enugu–Onitsha Expressway, or face the revocation of the contract.

Also read: MTN Nigeria urges return to profitability amid rising operational costs

This comes after a delegation from the Anambra and Enugu caucus of the 10th National Assembly visited the Minister to seek intervention over the delays in completing the road, which has become a death trap due to poor funding and execution.

The project is being handled by RCC Ltd and funded by MTN under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

In a statement issued by the Ministry, it was revealed that MTN must commit irrevocably to funding the project with N15 billion per month for the next 10 months to accelerate the completion of the 79 km stretch.

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Failure to do so would lead to the termination of the contract, with other contractors being invited to bid for the remaining 72 km of the road.

The Minister also noted that the delay had resulted in the cost of the project more than doubling due to inadequate funding and poor execution, and further delays could push the cost up by over 200%.

Umahi emphasized that the poor condition of the road has led to tragic incidents, including a recent tanker explosion on the Ugwu Onyeama axis that resulted in numerous fatalities.

The Minister reiterated President Bola Tinubu’s commitment to addressing the infrastructure deficit in the South-East and the entire country.

While he acknowledged the President’s ongoing efforts, Umahi stressed the need for swift action to complete critical infrastructure projects like the Enugu–Onitsha Expressway to prevent further loss of lives and boost regional development.

Also read: MTN Nigeria launches first fully digitised 5G experience centre in Abuja

The National Assembly members, including Senators Osita Ngwu and Victor Umeh, expressed concerns over the inadequate funding of road projects and pledged to support the Ministry’s efforts to overcome these challenges.

Quadri Olaitan
Quadri Olaitan

Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.

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