The Edo State Assets Verification Committee, established by Governor Monday Okpebholo, has revealed significant inflation in the cost of a road project awarded during the tenure of former Governor Godwin Obaseki.
The committee disclosed that the contract sum for the 17.5-kilometer Benin-Abraka Road Phase 1C project was inflated from an initial N8 billion to N16.4 billion within a year.
The Sub-committee on Physical Assets and Infrastructure discovered this during an inspection of the road project, which was awarded to Nsik Engineering Company Limited on May 16, 2023. The project officially commenced in September 2023.
Speaking during the inspection, the project manager for Nsik Engineering, Engr. Ifiokebong Ekong, confirmed that the company had initially been mobilized with N2.9 billion, representing 25% of the original contract sum of N8 billion. However, he stated that the contract sum was subsequently revised to N12 billion in early 2024 and further increased to N16.4 billion by June 2024. Despite these increases, he confirmed that the project’s scope and specifications had remained unchanged.
Engr. Abass Braimah, a member of the subcommittee, expressed dismay at the 100% increase in the contract cost, describing the situation as unprecedented. “It is alarming that a project initially awarded at N8 billion could be reviewed first to N12 billion and then to N16 billion in such a short time, especially with no changes to the project’s scope,” he said.
Braimah questioned the rationale for the increments and criticized the approval processes involved. He pointed out that the increments were excessive and unjustifiable, calling it a questionable practice that undermines the financial integrity of the state.
Subcommittee Chairman Patrick Obahiagbon linked the inflated contract figures to allegations that the funds may have been used to finance the September 21, 2024, governorship election. Obahiagbon referenced a petition submitted by concerned Edo citizens, which alleged that the outgoing administration inflated the road project’s cost to generate funds for political purposes.
“The inflation of this contract, which occurred within one year, aligns with claims in the petition that the previous administration desperately needed funds for the election. If true, this would represent a betrayal of public trust and an unfair deal for the people of Edo State,” Obahiagbon remarked.
The subcommittee intends to recommend that the main committee push for a comprehensive investigation into the allegations. Obahiagbon emphasized the need for accountability and vowed to ensure that any misappropriation of public funds is addressed.
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