Minister of Works cites poor performance, pledges Hitech Construction will take over to complete decades-long road project.
The Federal Ministry of Works has officially terminated the contract for the Ekim-Odukpani section of the Calabar-Itu Highway following persistent underperformance by Raycon Construction Company.
The announcement was made by Minister of Works, Sen. David Umahi, during an inspection tour on Saturday, citing the contractor’s failure to meet contractual obligations as the reason for the termination.
“This project is beyond the capacity of the company. We are disappointed at their poor performance. Terminating the contract is necessary to allow a more competent firm to take over,” Umahi said.
The ministry plans to issue a stop-work order and conduct a joint assessment of work completed before handing the project to a new contractor. Hitech Construction Company has been selected to carry out immediate palliative works and will eventually oversee permanent reconstruction as required. The minister assured that the long-suffering highway would see tangible improvements within two months.
Strategic Importance of the Highway
The Calabar-Itu Highway is the main link between Cross River and Akwa Ibom states, connecting key towns and facilitating trade and transportation. Despite its importance, the road has suffered severe deterioration for over a decade.
In 2021, the Federal Government approved N185 billion for the highway’s reconstruction and dualisation as part of over N600 billion allocated to critical infrastructure projects. The funding came through a tax credit scheme under the Federal Inland Revenue Service (FIRS) and the Nigerian National Petroleum Corporation (NNPC). The project was divided into three contracts:
- Julius Berger: N54 billion
- Chinese Civil Engineering and Construction Company (CCECC): N52 billion
- SEMATECH Engineering: N79 billion
Construction commenced on the Odukpani to Ibiono axis, but delays, largely attributed to funding constraints left commuters navigating a deteriorating and hazardous road.
Government Oversight and Warnings
In April, Sen. Umahi issued stern notices to SEMATECH Nigeria Limited and Raycon Construction for slow mobilisation and failure to meet project timelines. The minister warned that continued delays would result in contract termination, underscoring the government’s commitment to delivering quality infrastructure to citizens.
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