Former Governor of Edo State, Godwin Obaseki, has addressed allegations regarding the significant increase in the contract sum for the Benin-Abraka road phase 1c project.
The contract, initially valued at N8 billion, was reportedly inflated to N16.4 billion within a year.
The controversy emerged following a report by the Edo State Assets Verification Committee, led by Patrick Obahiagbon, which highlighted the inflation of the 17.5-kilometer road project.
The project manager, Ifiokebong Ekong, confirmed that the contract was awarded to Nsik Engineering Company Limited in May 2023, with work commencing in September of the same year.
Ekong explained, "The company was mobilized with N2.9 billion, representing 25 percent of the initial contract sum. However, due to economic conditions, the contract sum was revised first to N12 billion and later to N16.4 billion by June."
In response, Obaseki attributed the cost escalation to the economic impact of the fuel subsidy removal by the All Progressives Congress (APC)-led federal government. Speaking through his media adviser, Crusoe Osagie, Obaseki stated, "The galloping inflation, driven by the removal of subsidy and naira devaluation, necessitated the revaluation of the contract sum."
Osagie further criticized the committee's findings, accusing them of bias and an attempt to tarnish Obaseki's legacy. "It is most disappointing and reprehensible that the State Asset Verification Subcommittee would resort to lies and cheap propaganda," he remarked.
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