Home Business ICYMI: Umahi Awards ₦252.89 Billion Abuja-Kaduna Road Contract to Firm with Inactive CAC Status
BusinessNews

ICYMI: Umahi Awards ₦252.89 Billion Abuja-Kaduna Road Contract to Firm with Inactive CAC Status

1.9k

The Minister of Works, Dave Umahi, has denied claims that the Abuja-Kaduna road project, worth ₦252.89 billion, was awarded to Infoquest Nigeria Limited. This followed a media report on 21 January 2025, which alleged that the Ministry had contracted the project to Infoquest, a company with minimal public presence. Umahi described the claims as false and accused the newspaper of misleading the public.

In a statement by Umahi’s media adviser, Orji Uchenna, the Minister clarified that the project wasawarded to Infiouest International Limited, not Infoquest Nigeria Limited.

Infiouest is a French name. In French, O is pronounced like Q. So the pronouncement is the same. If you pronounce Infoquest in English, it is Q, but if you pronounce it in French it is O, Umahi said at a press conference on Wednesday.

Umahi maintained that Infiouest International Limited was legally compliant and capable of handling the project. However, West Africa Weekly checks on the Corporate Affairs Commission (CAC) database reveal that Infiouest International Limited is inactive.

This status suggests the company has not fulfilled its obligations, such as filing annual returns, as required by the Companies and Allied Matters Act (CAMA) 2020. An inactive company is legally barred from entering contracts, raising concerns about the award’s validity.

Directors/Secretary of Infiouest International Limited

The Abuja-Kaduna road project was previously handled by Julius Berger, a well-known construction company before the contract was terminated and re-awarded to Infiouest. This decision has sparked criticism from Nigerians, who expressed concerns about awarding such a critical project to a company with questionable compliance status.

Some have argued that replacing Julius Berger with an inactive company raises questions about transparency and competence in the Ministry’s decision-making process. Conversely, the Minister accused Julius Berger of relying on its past reputation and demanding unfair prices. In response, Julius Berger stated through advertorials that it requested a contract review due to inflation and currency volatility. The company also claimed it was never invited to rebid after revoking the contract.

Legal experts have pointed out that awarding contracts to inactive companies potentially violates Sections 525(3) and 525(4) of CAMA. These provisions address the removal of inactive companies from the register by the Corporate Affairs Commission (CAC). Once a company is struck off, it ceases to exist legally and cannot enter or enforce contracts. However, the Minister of Works, Umahi, maintains that Infiouest International Limited remains “corporately active.”

Read More:

About The Author

Written by
Mayowa Durosinmi

M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

NewsWorld

Algeria Severs Diplomatic Ties With UAE, Closes Airspace to Emirati Aircraft

Algeria announced on Thursday that it was cutting diplomatic ties with the...

NewsPolitics

Gambia Bans Protests Without Permits After Blackout Unrest Erupts Ahead of December Election

Gambia’s police chief has banned all public protests without official permits after...

News

Sanwo-Olu Blames Cranes and ‘Iconic Cane’ as Ojota-Opebi Bridge Misses Another Deadline

Lagos State Governor Babajide Sanwo-Olu has offered yet another explanation for why...

NewsPoliticsWorld

Gambia Protests Turn Chaotic as Power Outages Worsen Ahead of December Elections

Thousands of Gambians took to the streets overnight in Banjul and surrounding...