The Federal Executive Council (FEC) has approved a total sum of N836 million as contract variation for the establishment of 38 oxygen production plants across Nigeria.
Lai Mohammed, minister of information and culture, announced this to state house correspondents after the FEC meeting on Wednesday.
Contract variation refers to an alteration to the scope of the agreement, but not the extension of the duration of the contract.
“The Minister of Health also presented a memo seeking for an upward review for the emergency supply, installation and maintenance of the 38 oxygen plants all over the country,” Mohammed said.
“You will remember in June, the Federal Executive Council approved the sum of N5.615 billion to four major contractors for the emergency supply, installation and maintenance of 38 oxygen plants in various parts of the country.
“Regrettably, the four companies also came back recently with the same complaints ranging from fluctuation in the foreign exchange and the scarcity of the material all over the world as a result of COVID-19.
“So, he presented a memo for augmentation in the sum of N836 million and this was also approved today.”
Mohammed also said FEC okayed a total sum of N203 million as the revised estimated cost for the consultants supervising the water dam irrigation project in Bagwai local government area of Kano state.
“When the Bagwai Water Dam Irrigation project in Bagwai Local Government Area of Kano State commenced, the initial contract was awarded in 2005, and due to several logistics problems, the project is still on and just recently, the FEC actually approved an augmentation of the entire contract and that means also that the mandate of the consultant supervising the construction would also have to be reviewed.
“So, it was reviewed from N98 million with the sum of N203 million. So, now the total cost for the consultancy is N302.88 million,” he added.
Meanwhile, Chukwuemeka Nwajiuba, minister of state for education, announced that the council approved N121 million for the refurbishment of some dilapidated equipment and furniture at the Federal Polytechnic, Bauchi state.