CurrentReport Blog The immediate past Governor of Edo State, Godwin Obaseki, has defended the upward review of the contract sum for the reconstruction of the Benin-Abraka road phase 1c, attributing it to the skyrocketing inflation caused by the removal of fuel subsidy under the All Progressives Congress (APC)-led Federal Government.
The 17.5-kilometer road project, awarded in May 2023 to Nsik Engineering Company Limited at an initial cost of ₦8 billion, was later revised to ₦16.4 billion by June 2024. This inflation raised concerns among Edo citizens and the Physical Assets and Infrastructure Subcommittee of the Edo State Assets Verification Committee.
Timeline of Contract Adjustments
- May 2023: The contract was awarded at ₦8 billion, with the company mobilized with 25% of the sum (₦2.9 billion).
- September 2023: Work began on the project.
- 2024 Adjustments: The contract sum was revised to ₦12 billion and subsequently increased to ₦16.4 billion by June.
The project’s completion timeline was also adjusted from three and a half years to 18 months.
Obaseki’s Defense
In a statement dated December 13, 2024, Obaseki, through his media adviser Crusoe Osagie, explained that the inflation of the contract sum was inevitable due to the economic downturn triggered by federal policies.
“It is on record that immediately after President Bola Ahmed Tinubu took office, the removal of subsidy and the devaluation of the naira occurred, driving inflation up by over 300%,” the statement read.
Osagie cited drastic increases in the costs of materials and logistics, including:
- Cement prices rising from ₦3,000 to ₦15,000.
- Fuel prices surging from ₦190 to over ₦600 per litre.
- A bag of rice escalating from ₦23,000 to over ₦100,000.
He accused the current Edo State Governor, Monday Okpebholo, and the Assets Verification Subcommittee of politicizing the issue to tarnish Obaseki’s legacy.
Allegations of Witch-Hunt
Obaseki dismissed the allegations of mismanagement as “spurious and baseless,” emphasizing that the contract reviews were necessitated by the economic realities of the time. He described the actions of the subcommittee as “a desperate attempt to denigrate the sterling legacy” of his administration.
Public Reactions
The controversy has sparked mixed reactions among Edo residents, with some accusing the previous administration of poor planning, while others blame the federal government for the economic challenges that necessitated the price hikes.
