In 2008, residents of Utako, a district in the Federal capital territory, FCT, were filled with excitement when they were told of the construction of a district hospital, anticipating that the project would bring development to their community. In this report, The ICIR’s Nurudeen Akewushola reveals how the project remains abandoned 10 years after the contracted company, PPC Limited, shabbily executed the project despite gulping over N2bn. This led to a legal tussle between the company and the agency, which has stalled the completion of the project to date.
The anguish of a mother who loses her child after pregnancy is beyond words. Aishatu, a 35-year-old living in Utako village, endured this harrowing experience not once but twice. Today, she might have been a mother to two, but death claimed the lives of both of her babies during childbirth.
Had Aishatu been able to access antenatal care and other quality healthcare services within her community during her pregnancy and delivery, the predicament may have been prevented. Unfortunately, the most viable option she could afford at the time was a local medicine store. The nearby 220-bed general hospital, located right next to her residence where she sells pap, has been neglected for over a decade despite the Federal Government investing millions of naira in its construction.
“I don’t have any children. My two babies passed away shortly after birth,” Aishatu declared. I reside in this area, but I am not aware that this building is meant to be a hospital. If it is built and becomes operational, it would be beneficial for me and other women in the community. Instead of having to travel to a far location, All of us will be able to access health care at a hospital here in Utako.”
Conceived in 2008, the Utako District Hospital was initially designed as a 220-bed facility to provide high-quality healthcare services to the residents of the Federal Capital Territory, particularly those living in the surrounding area.
Surprisingly, the community is not located in a remote area but along the Obafemi Awolowo Road, not far from the Arab junction in the heart of the FCT. However, several commercial drivers did not know that the hospital existed when The ICIR attempted to find a means of transportation to the location. As Aishatu said, even residents of the community were not aware that the abandoned structure was supposed to serve their health needs.
According to the Freedom of Information Act (FOIA) response received from the Federal Capital Territory Development Administration (FCDA), the project was awarded to M/S Phillips Project Centre Limited at a total cost of N4.26 billion on September 20, 2008. However, despite more than half of the contract value (N2.26 billion) being released to the contractor, the hospital remains uncompleted and abandoned, leaving the community without the much-needed healthcare facility.
Findings show that the Federal Capital Territory Administration (FCTA) issued a stop work order to the contractor, Phillips Project Centre (PPC) Limited, after they had shabbily executed the project, which led to the collapse of a part of the building.
How contractor shabbily executed project
On July 20, 2023, The ICIR sent a FOIA request to the Department of Health and Human Services of the FCTA to inquire about the details of this project. The request was forwarded to the Department of Public Building of the FCDA for processing. It was responded to on August 8, 2023, and signed by A.O Adeyemo for the agency’s Executive Secretary.
According to the response, the hospital’s creation aligns with the Federal Government’s dedication to enhancing healthcare accessibility in the FCT. It was designed to be a 220-bed referral institution, serving as the primary medical facility for the Utako district, as outlined in the Abuja master plan.
The execution period was set to be 80 weeks, but there has not been budgetary provision for the project since 2015 due to court action which led to the stoppage of the project.
The agency insisted that the guidelines laid down by the Bureau of Public Procurement (BPP) were followed in the project award, which made it receive a certificate of “no objection” to proceed with the award.
According to the FOIA response, Open Competitive Bidding was adopted as a procurement method, and the project was advertised on September 17, 2007, followed by bids opening which occurred on November 26, 2007.
“Sub-structure works had been completed, as well as super-structure/first-fix works, with fencing/drainage works at different stages of implementation when a partial collapse incident that affected the hospital core occurred in 2013,” the FCDA said in response to a FOIA request subsequently received by The ICIR.
Follow-up FOI response received by The ICIR shows that a committee set up by FCTA in 2013 to investigate the incident discovered that the contractor executed the contract shabbily with poor quality of work and negligence in ensuring adequate structural design.
The committee found that the ground under a section of the building was weak and unable to support the weight of the structure. This weakness caused part of the building to collapse.
In financing the project, Guaranty Trusted Bank (GTB) had agreed to provide financial security for the payments by issuing an advanced payment guarantee of N814.4 million(N814,392,972) on behalf of the company in 2009. The rest amounting to N2.4bn(N2,373,271,026) was to be released in three instalments of N791 million(N791,090,342) million each, between February 2014 and February 2016.
Following the recommendation by the committee, the former minister Bala Mohammed ordered the termination of the contract, disengagement of the contractor and recovery of N626.1 million abortive builders’ work paid. Before then, the contractor had also been paid N1bn to supply medical equipment, but yet to be delivered.
In reaction, the company instituted a court action restraining GTB from releasing the subsequent payment to the FCDA. However, the agency quickly filed a preliminary objection challenging the territorial jurisdiction of the court to entertain the suit. The case was later adjourned indefinitely in 2016 after hearings.
Sometime in October 2020, during the Endsars protest, the Lagos State High Court Igbosere, where the hearing was taking place, was burnt. All the records relating to the pending suit were claimed to have been burnt during the incident.
In 2022, FCTA and representatives of PPC Limited representatives agreed to hold a meeting to find a common ground.
PPC Ltd re-awarded contract despite 15 years of failure
During the reconciliation meeting held between both parties in August 2022, the managing director of the company, Ayo Grillo claimed that most of the equipment(building materials) bought in 2009 was imported from the Netherlands and stored in Ojota, Lagos, but may probably have become obsolete.
It was finally resolved that the company subcontracts the construction works to another company while they take care of medical equipment procurement, which findings have shown to be their major strength. However, there was no indication that the contractor was back to work when The ICIR visited the project site in September 2023.
When contacted, the spokesperson of the Federal Capital Territory Administration(FCTA), Tony Ogunleye, confirmed it was litigation that stopped the project from going forward and efforts are being made to resuscitate the project as soon as possible.
Indigenes seek quick intervention
Indegenes of Utako village who spoke with The ICIR expressed disappointment over how the Federal Capital Territory Administration failed to utilise their ancestry land for the residents’ well-being and community development.
Sani Madaki, an indigene of the community, said the abandoned project has become a threat to the community, and residents have been hoping for government intervention for more than a decade. Still, nothing was done despite promises by the authority.
He added that the armed robbers and other criminal gangs use the building as a hideout after terrorising neighbouring communities.
Narrating an instance, Madaki said, “There was a time that we heard that some guys robbed at this Utako market. When they were chasing them, they went and hid in that uncompleted building. When they raided the building there were some weapons that they hid in the building. It’s a bad record for the community.”
The community leader, also known as Danmasani of Utako, Musa Danjuma, said, “This is our ancestral land, which we were able to sacrifice for them to build a hospital because we know that anything that goes to the hospital is for us. We sacrificed the land for the betterment of the masses.”
He recalled that the community members have made several efforts to reach the authorities but still no positive results.
He appealed to the FCTA to come to their aid and revitalise the project, saying it will bring ease and development to the community.
PPC Ltd owned by ‘influential’ people
The contract for the construction and equipping of the Utako District Hospital was awarded on July 8, 2008, to PPC Limited at a sum of N4.3bn. The company, which was registered on September 12, 1991, is located at 8, Kofo Abayomi Street, Victoria Island, Lagos.
Findings show that the company is a technology and engineering firm. The 2011 archived company profile reads: “PPC (formerly Philips Projects Centre) is a wholly Nigerian-owned limited liability technology company. Its core activities are primarily geared towards providing specialised integrated solutions and services for turnkey engineering solutions in ICT, Energy/Power, medical and other utility sectors.”
This shows that the company did not have any core or implied professional competency in structural engineering design and construction. While it might have been a good option for equipping the hospital, it did not have expertise in construction. Findings by The ICIR show that due to its lack of capacity to execute the project, the contractor subcontracted the project to another company.
Section 16(6) of the Public Procurement Act(2007) stipulates that only companies with proven credentials and expertise are qualified to bid for government contracts. Awarding the construction of Utako District Hospital to PPC Limited is a flagrant disregard punishable by law.
Meanwhile. findings show that PPC Limited is owned by influential businessmen in Nigeria with strong connections. One of the shareholders, according to information obtained from NG-check, (archived here) and the company website, is Ahmed Dasuki, a board member at Stanbic IBTC who also owns a N19.35 billion share in MTN.
Others are Samuel Unuigbe, a chartered accountant and former Stanbic IBTC Holding board member; Daru Owei, one-time director of Stanbic IBTC, who was among those suspended by the Financial Reporting Council over allegation of improper disclosures in the financial statements of the bank and Abiodun Disu who functions as the chairman of the company.
Other directors of the company include Elias Gbolahan, Obodoechina Ukpabi Asika, Eniza Peters and Grillo Ayo, managing director of the company.
PPC Ltd keeps mum
The contractor refused to comment on the dilapidated state of the project despite a FOIA request sent to its office and official email. The ICIR correspondent sent to the company’s office in Lagos was also denied access.
“Thank you for your mail seeking information regarding the Utako District Hospital project awarded to our company,” responded Ola Ibrahim of the company’s Proposal Management Department in an email dated July 14, 2023. “Our view is that the Request for Information should be directed to the Public Institution responsible for the project. The Federal Capital Territory Administration should be in a better position to provide the required information.”
When this reporter reminded him that Section 2 (7) of the FOI act provides that private companies such as PPC Nigeria Limited utilising public funds or providing public services or public functions are mandated to give information regarding it upon request, the company said it had “nothing more to say on this matter.”
On August 14, 2023, the reporter sent another email. The company failed to respond. On August 23, a reminder was sent. Still, the company, again, said it had nothing to say on the issue, insisting that all the enquiries should be directed to FCDA and the Health & Human Services Secretariat (H&HSS) of FCTA.
The CAC is the only legally approved institution that keeps company registration records in Nigeria. In August 2023, The ICIR searched for the name of the company on the website of the commission, the company was listed as inactive. This happens either if the CAC does not update its record or the company has not been filing annual returns, which is considered a serious infraction in Nigerian laws.
This reporter sent an email to the contractor regarding this, but they declined to respond. A few weeks later, it was discovered that the company’s status had been changed to “Active” on the CAC portal.
This means the company had either contacted the CAC to update its record or quickly paid its dues to avoid being called out.
Hospital turned into home for squatters
During a visit to the hospital site, the surrounding area had turned into a dumping ground. The buildings with intact roofs had become a haven for illegal occupants and street urchins. The residents lamented how the building had transformed into a hub for criminal elements.
The compound has turned into a habitat for reptiles, and farmers have taken advantage of the situation by planting maize, especially during the rainy season.
Residents staying in the building who spoke with The ICIR said they reside in the building because it’s cheap compared to ideal accommodation in Abuja which accounted for 10 per cent of the 17 million housing deficit in Nigeria.
According to them, they paid between N1500 to N2000 monthly to vigilantes guarding the project as house rent.
A resident in the building who identified herself as Happy John said she had been staying in the building for close to one year.
“My mum and I are staying here. We were staying somewhere around Yoruba mosque in Utako before, but because we couldn’t afford the house rent again and this place seems to be more affordable, we moved in here. We pay monthly. When we first came here, we paid N5,000, but since then, we have been paying N2,000 monthly to a security man named Ibadan,” she said.
Another resident, who simply identified himself as Bashir told The ICIR that he has been staying in the building for close to six years. He explained that the residents of the building are over 300 and they have a register where they document the names of residents to avoid invaders who might cause them harm.
“Here’s a government property,” Bashir declared. “It doesn’t belong to anybody. But we have rules and regulations that we are following to stay in this place. We are not paying house rent. We only give the vigilantes any amount that we can afford, ranging from N1,000 to N1,500 monthly.”
On why he decided to reside in the building rather than rent an apartment, Bashir said he is staying there because he cannot afford ideal accommodation in Abuja.
FCT, a home to multi-billion naira abandoned projects
The Federal Capital Territory is home to various multi-million naira public projects abandoned due to negligence by the Federal Capital Territory Administration and Federal Capital Development Administration.
While some of the structures have been abandoned at advanced stages, others are still very much in the early stages of construction.
One of them is Millennium Tower and Cultural Centre Project which was initiated in 2005 by the Olusegun Obasanjo administration. It was designed to be the tallest tower in Abuja at 170 metres (560ft) at the cost of N69.3bn.
Other abandoned or uncompleted projects littering the city are the Millennium Tower and Cultural Centre, Abuja Technology Village Science and Technology Park, Abuja Technology Village, National Library, NIPOST Headquarters, FIRS Headquarters, Ministry of Agric Headquarters and the 15km Apo-Karshi road.
While Minister Wike has repeatedly lamented the numerous abandoned projects in the Federal Capital since taking office, the responsibility for their completion now falls squarely on his shoulders.
Though some of these projects have defied solutions for years, the minister has pledged to tackle the financial leaks and systemic issues that led to their abandonment. He has also promised to overhaul engineering services, secure adequate funding, and block financial leakages to ensure all abandoned projects are completed by May next year.
However, concern remains as key projects like the Utako District Hospital were not included in the proposed 2024 budget, leaving its fate unclear.
In an interview with The ICIR, a senior research analyst at the BudgiT Foundation, Vahyala Kwaga, explained that abandoning government facilities, particularly healthcare centres results in a loss of potential care for the local population, leading to increased pressure on other facilities and the wastage of government resources.
“A health facility is meant to service the population around it, in different forms: Maternal Care, Emergency care, Ear, Nose and throat issues, routine diagnosis and so on. This means that all the persons who could have received that attention simply would not,” Kwaga said.
“Further, it means that the pressure on other facilities would increase, as the facility that could have reduced that strain does not exist. It also means that the government’s resources have gone to waste. Monies raised via taxes, and crude oil sales among others have gone down the drain as the project was not delivered.”
Kwaga explained that factors responsible for the abandonment of government projects include but are not limited to poor project planning, inefficient resource allocation, budget priorities, and transitions in government leadership.
He further noted that awarding monumental government projects to firms without enough expertise and experience to carry them out jeopardizes project execution, endangers users’ lives, and may create a culture of awarding contracts to inexperienced firms.
To address the challenge, Kwaga suggests solutions like publishing citizens’ budgets to increase transparency, involving citizens and groups in the budget formulation process, and instituting regular audits with public presentations to gather citizen feedback on project impact.
*This investigation is supported by the John D. and Catherine T. MacArthur Foundation and the International Centre for Investigative Reporting.
Nurudeen Akewushola is an investigative reporter and fact-checker with The ICIR. He believes courageous in-depth investigative reporting is the key to social justice, accountability and good governance in society. You can reach him via nyahaya@icirnigeria.org and @NurudeenAkewus1 on Twitter.
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