The Federal Executive Council (FEC) has approved N630 million consultancy for the deployment of technology to reduce risks and damages associated with the award of contracts.
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Attorney General of the Federation and Minister of Justice, Mr Abubakar Malami said this while briefing State House correspondents at the end of the weekly FEC meeting chaired by President Muhammadu Buahri.
He said the memo presented by the Ministry of Justice would help address all forms of deficiencies associated with contracts that expose the nation to higher risks and damages.
Malami, said the contract was with a completion period of six months.
He cited the challenges faced by the government over the contracts with P&ID and the Ajaokuta Steel and Mambilla Hydropower Plant which affected the path to the country’s industrialization.
He said: “This memo is intended to bring about a new development in contract administration in Nigeria, by way of deployment of technology, building capacity and specialisation, developing a continuous check list of all existing contracts and ensuring that the interest of the Nigerian government in all contracts to be considered by MDAs are adequately addressed to ensure the government is not subjected to higher risks,” he said.
“This memo is intended to bring about a new development in contract administration in Nigeria, by way of deployment of technology, building capacity and specialisation, developing a continuous check list of all existing contracts and ensuring that the interest of the Nigerian government in all contracts to be considered by Ministries, Department and Agencies, are adequately addressed, to ensure that the government is not subjected to higher risks as it relates to damages and deficiency in contracts that it may sign with third parties.
“So, the Federal Executive Council considered the memo and granted approval for the engagement of a consultancy service firm that will now assist in the deployment of technology in building the capacity of the relevant departments in the Federal Ministry of Justice that are responsible for providing technical services in the formulation of contracts and to ensure that the necessary clauses and protection is provided for the government in the drafting of agreements so as to reduce to the barest minimum the level of digression witnessed recently in some contracts.
“At the end of the day, the council approved the contract for consultancy services in the sum of N630, 132, 750 inclusive of the 7.5 percent value added tax, with a completion period of six months,” he said.
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