Obaseki’s government inflated road contract from N8bn to N16.4bn in just one year, reveals panel
In a stunning revelation on Thursday, December 12, 2024, the Edo State Assets Verification Committee uncovered how the cost of a road project in the state was inflated by over 100% within a year. The committee, led by Governor Monday Okpebholo, reported that the contract for the 17.5-kilometer Benin-Abraka Road Phase 1C was increased from N8 billion to N16.4 billion under the previous government of Godwin Obaseki.
The Sub-committee on Physical Assets and Infrastructure discovered the price hike during a site inspection. The project, awarded to Nsik Engineering Company Limited in May 2023, initially had a budget of N8 billion. However, by June 2024, the cost had escalated to N16.4 billion—an increase that shocked members of the committee.
Engr. Ifiokebong Ekong, the project manager for the construction firm, explained that the contract had been adjusted twice: first to N12 billion in 2024, and later to N16.4 billion in mid-2024. Ekong confirmed that the mobilization for the project was set at N2.9 billion, or 25% of the original N8 billion contract.
Engr. Abass Braimah, a member of the committee, expressed frustration over the dramatic increase. “I don’t think there is anywhere in Nigeria or outside that a project can be awarded for N8 billion, reviewed to N12 billion, and further reviewed to N16 billion. What has substantially changed to cause a 100% increment in the cost?” Braimah said, questioning the fairness of the adjustments.
Patrick Obahiagbon, the chairman of the subcommittee, said the committee’s visit to the site was triggered by a petition from concerned Edo citizens. The petition suggested that the contract inflation was likely a tactic to raise funds for the September 2024 governorship election. “The contract was inflated because the outgoing governor needed money urgently to fund the election,” Obahiagbon claimed, adding that the situation was unfair to the people of Edo State.
The committee plans to recommend a further investigation into the matter to ensure transparency and accountability.
