Photo: David Umahi

Tinubu’s Govt Re-Awards Abuja-Kaduna Highway Contract to Inactive Company

The Federal Government has re-awarded the contract for completing the Abuja-Kaduna highway to an inactive and relatively obscure company, Infoquest Nigeria Limited.

Daily Trust investigations reveal that this development follows the revocation of the contract from Julius Berger Construction Company over disputes regarding price adjustments and completion timelines.

Julius Berger had justified the cost adjustment by citing inflation and rising energy and material costs, while also stating that payments for work executed since November 2023 had not been received.

The Minister of Works, Sen. David Umahi, disclosed during an inspection that Infoquest Nigeria Limited secured a “No Objection” certificate valued at ₦252.89 billion from the Bureau of Public Procurement (BPP). This certificate is to be ratified at the next Federal Executive Council (FEC) meeting.

A “No Objection” certificate, as stipulated by the Public Procurement Act of 2007, certifies that the procurement process complied with the Act’s provisions, allowing the contracting entity to proceed with the award and make payments.

According to findings, Infoquest Nigeria Limited is listed as inactive on the Corporate Affairs Commission (CAC) website, which contravenes the Companies and Allied Matters Act (CAMA) 2020. Further details revealed that the company has a total ordinary share and share capital of ₦100,000 and has never paid annual returns since its establishment. This raises questions about its legal capacity to undertake contracts, as inactive companies are legally incapable of executing contracts or initiating business activities. Section 525(3) & (4) of CAMA 2020 empowers the CAC to remove such companies from its register, rendering them legally non-existent.

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A Daily Trust correspondent visited the listed address of Infoquest Nigeria Limited at 39 Falohun Street, Orile, Lagos. The building, identified as a residential property, showed no signs of a construction company. Local residents confirmed that no company operated at the location.

When contacted, the Ministry’s Director of Press, Mohammed A. Ahmed, stated that the minister had not officially announced the contract award but mentioned receiving a certificate.

The Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, confirmed that the company met the requirements for the certificate of “No Objection” and dismissed any political considerations in the process.

He said, “As at April 2024, we verified the company’s records, including multi-billion-naira contracts executed with FCDA, the Ministry of Water Resources, and other agencies.”

Despite these assurances, the company’s inactive status and lack of a digital presence raise doubts about its capacity to execute such a significant project.

The re-award of the Abuja-Kaduna highway project to Infoquest Nigeria Limited has sparked public concern, particularly regarding the company’s ability and legitimacy to manage a multi-billion-naira contract. Observers have called for further scrutiny into the procurement process to ensure compliance with statutory requirements and transparency.

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