Oyo State Government has announced a comprehensive review of contracts for 12 ongoing projects across the state. This decision was made during a recent State Executive Council meeting, as outlined by the Commissioners for Works and Budget and Economic Planning, Professors Dawud Sangodoyin and Musibaudeen Babatunde, at a press briefing.
The original estimated cost for the 12 affected projects was slightly over 200 billion naira. However, in light of the current economic climate, the contractors submitted a proposal requesting an additional 159.6 billion naira to accommodate the rising costs associated with foreign exchange fluctuations.
After negotiations, the additional sum was successfully reduced to 86.1 billion naira, resulting in significant savings for the state, estimated at over 70 billion naira.
Professor Sangodoyin elaborated on the projects impacted by this price review, which include key infrastructure developments such as the construction of the Rashidi Ladoja Circular Road (Lots 1 and 2), the rehabilitation of the Saki-Ogboro-Igboho road, the construction of the Iseyin-Apomu road, and the development of the Apomu junction to Ogbomoso road, among others.
He also noted that the scope of work includes asphaltic reconstruction and expansion initiatives.
The review reflects the Oyo State Government’s commitment to maintaining fiscal responsibility while ensuring that essential infrastructure projects continue to move forward despite economic challenges.
By negotiating effectively with contractors, the government aims to optimize resources and enhance the overall value of public investments in the region.
As the state navigates these financial pressures, the administration remains focused on delivering quality infrastructure that meets the needs of its citizens while managing costs efficiently. The review process will be closely monitored to ensure transparency and accountability throughout the duration of the projects.
