The Federal Ministry of Works has terminated the contract for the Ekim-Odukpani portion of the Calabar-Itu Highway following poor performance by Raycon Construction Company.
The announcement was made by the Minister of Works, Sen. David Umahi, during an inspection tour on Saturday.
The termination comes after the contractor failed to meet the terms and conditions of the agreement, raising concerns over the company’s capacity to complete the project.
Umahi explained that the contract was awarded as an intervention project after being taken over from Julius Berger due to the contractor’s pricing being considered unreasonably high.
“We are disappointed at the poor performance of the contractor. We shouldn’t have given them the job, the company has shown obvious lack of capacity to perform. This job is definitely beyond the capacity of the company. The termination is necessary to enable the ministry to bring in a new contractor,” he said
The minister explained that a stop-work order would be issued and a joint measurement of work completed to be conducted before awarding the contract to a more competent company.
The Calabar-Itu Highway is the sole road linking Cross River and Akwa Ibom states, connecting key towns and supporting trade and transportation, but it has been in a deteriorated state for over a decade.
In 2021, the Federal Government of the late President Muhammadu Buhari’s administration approved N185 billion for the road’s reconstruction and dualisation, funded through a tax credit scheme under the Federal Inland Revenue Service and the Nigerian National Petroleum Corporation (NNPC) as part of over N600 billion allocated to critical infrastructure projects. The project was awarded in three tranches: N54 billion to Julius Berger, N52 billion to the Chinese Civil Engineering and Construction Company (CCECC), and N79 billion to SEMATECH Engineering.
The construction began on the axis between Odukpani in Cross River State and Ibiono in Akwa Ibom State, with delays attributed to funding constraints, leaving the commuters to face a deteriorating road.
In April, the Umahi issued stern notices to SEMATECH Nigeria Limited and Raycon Construction for slow mobilisation and failure to meet project deadlines, warning that continued delays would lead to contract termination and underscoring the government’s commitment to delivering quality infrastructure.