FEC Approves N6.32bn for Two Aviation Contracts 

The Federal Executive Council (FEC) on Wednesday, December 13, approved two contracts worth N6.32 billion for the Ministry of Aviation and Aerospace Development.

Minister of Aviation and Aerospace Development, Festus Keyamo, while briefing journalists after the week’s FEC meeting, which was presided over by President Bola Tinubu, disclosed that the approvals were for both the main ministry and the Nigerian

Airspace Management Agency (NAMA).

According to Keyamo, the first contract, involving technical support services at the Murtala Mohammed International Airport in Lagos, was cost at N4.1 billion, while the second one, sited at the Port Harcourt International Airport, involving the fixing of some navigational equipment, was cost at N2.23 billion.

He said: “Basically, the Ministry of Aviation and Aerospace Development presented two memos; one from the main ministry and another one from one of its agencies, which is NAMA. The first memo is actually a Technical Support Services contract with the CCECC, the Chinese company that built the new international wing of our airport in Lagos and of course the other four airports across the country.

“So from the word go, we have struck a deal with the same people who builds the place. It’s only natural that they are the same ones who should maintain their facilities for the first five years. That is what this technical support service contract is. For the first five years.

“We have said that they should maintain their chillers, the air handling units, the passenger boarding bridge, the escalators at the concourse, the remote boarding lifts that were specifically made for the physically challenged, and all those facilities they put there.

“It is for five years, the first five years for a contract sum of N4.1 billion, inclusive of 7.5% VAT, with a completion period of five years. So it says for the comfort of the traveling public, for Nigerians and for the enjoyment of the traveling public. So that is the first memo we presented and it was approved by Council.

“The second memo has to do with some navigational equipment at the Port Harcourt International Airport. The equipment really are for communication, they call them the VHF FM radios, remote access devices and other accessories for the wide area multilateration air traffic management system at Port Harcourt.

“So we are purchasing these equipments for Port Harcourt International Airport at the sum of N2,227,721,091, inclusive of 7.5% VAT, with a delivery period of nine months and it has been awarded in favor of a company that is actually the representative of one of the best companies in the world that produce such communication equipment for the aviation sector.”

Meanwhile, the Council has also decided to take another look at the issue of waivers being granted on duties in the country.

Minister of Information and National Orientation, Mohammed Idris, who disclosed this to journalists at the briefing, said the Council decided to review the decision on waivers in order to help the nation minimize revenue losses.

He noted: “There is also the issue of other economic policies that were discussed at Council today. Of note is the issue of waiver, in addition to so many other decisions taken. You’ll recall that Customs has reported that in 2023 alone, they’ve lost over N1.3 trillion to waivers.

“Council has decided to look at those waivers and review them so that Nigeria will not continue to lose money at a point that we all need these resources for the development of the of the country.”