The Edo State Assets Verification Committee, established by Governor Monday Okpebholo, has uncovered significant inflation in the cost of the Benin-Abraka Road Phase 1C reconstruction project.
Initially awarded for N8 billion, the project’s contract sum was revised upward to N16.4 billion under former Governor Godwin Obaseki’s administration.
The revelation came during an inspection by the Sub-committee on Physical Assets and Infrastructure.
The 17.5-kilometer project was awarded to Nsik Engineering Company Limited in May 2023, with work commencing in September 2023.
Engr. Ifiokebong Ekong, the project manager, disclosed that the company was mobilized with N2.9 billion, representing 25% of the original contract sum.
However, he confirmed that the cost was revised twice in 2024—first to N12 billion and later to N16.4 billion by June. The project timeline was also shortened from three and a half years to 18 months.
Engr. Abass Braimah, a committee member, expressed shock at the 100% increase, questioning its justification.
“How can a project awarded for N8 billion be revised to N12 billion, and then to N16 billion within such a short period, without any changes to the specifications? This is unprecedented,” he said.
Patrick Obahiagbon, the chairman of the sub-committee, linked the inflated costs to alleged political motivations.
He cited a petition from concerned citizens alleging that the contract revisions were intended to generate funds for the September 2024 governorship election.
“The timing of these contract revisions is suspicious. It suggests the inflation may have been a deliberate attempt to divert state funds for political activities,” Obahiagbon stated.
He described the situation as alarming and emphasized the need for further investigations to determine the extent of possible financial mismanagement.
“The committee will recommend a thorough probe to ensure those responsible are held accountable,” he added.