The Federal Government has given Julius Berger Plc seven days to accept the revised N740.8 billion contract for the 82-kilometer Abuja-Kaduna-Zaria-Kano road rehabilitation or face termination.
Minister of Works, Sen. Engr. Nweze David Umahi, issued the ultimatum during a meeting with Julius Berger’s new Managing Director, Dr. Pier Lubasch, on Tuesday, as contained in a statement on the ministry’s website on Wednesday.
Umahi expressed concern that the company’s delay has worsened hardships for road users and increased costs from N710 billion to N740 billion, warning that other contractors may be engaged to ensure timely completion and cost control.
“The Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has for the umpteenth time called on Julius Berger Plc. to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740, 797,204,713.25 for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350,” the statement read in part.
It added, “The Honourable Minster expressed dismay that Julius Berger Plc, which has had years of patronage by Federal Government and sub-national governments, is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges. He therefore urged the contractor to within 7 days accept or reject the approved reviewed contract sum for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road or face contract determination as Federal Government cannot be held to ransom by the desire for unrealistic pricing and augmentation by contractors.”
The statement further noted that Umahi lamented the prolonged negotiations with Julius Berger, emphasizing that continuous delays not only escalate costs but also undermine the government’s efforts to deliver critical infrastructure for public benefit.
More insight
The statement further noted that, while welcoming the new Managing Director of Julius Berger Plc, the Works Minister emphasized the need for construction companies partnering with the Federal Ministry of Works to adopt value-driven and realistic pricing.
He stressed that these sacrifices are essential to advancing Nigeria’s road infrastructure revolution, a key component of the current President Bola Tinubu-led administration.
The minister highlighted that several Julius Berger projects had already been terminated due to site abandonment, adding that such delays are causing public suffering, fueling frustration, and tarnishing the government’s image.
The new Julius Berger Plc. Managing Director, Dr. Pier Lubasch, assured the minister of swift feedback on the issues raised, expressing hope that a consensus would be reached to resume the project without further delay. Meanwhile, the outgoing Managing Director, Dr. Lars Richter, clarified that the purpose of the courtesy visit was to formally introduce his successor.
What you should know
The Federal Executive Council (FEC) approved a downward review of the Abuja-Kaduna-Zaria-Kano road rehabilitation project in September, reducing the cost to N740.79 billion.
Initially approved by the administration of former President Muhammadu Buhari in 2017, the project began in May 2018 and was awarded to Julius Berger to enhance transportation across Abuja, Niger, Kaduna, and Kano states and improve the movement of agricultural produce from the North.
Despite projections by the then-Minister of Works, Babatunde Fashola, that the project would be completed before the Buhari administration ended in 2023, it remained unfinished.
The current Minister of Works, Dave Umahi, later disclosed that the previous government left a debt of N1.5 trillion on ongoing road projects, including the Abuja-Kano reconstruction.
In early 2024, the Federal Government allocated additional funds, releasing N17 billion and preparing another N33 billion to sustain the project.
In August 2024, following a meeting with Julius Berger, the Federal Government committed to an N20 billion monthly disbursement for the dualization of the 82-kilometer section of the road project, with a target completion period of 14 months.
However, Julius Berger’s delay in accepting the revised contract threatens the timely completion of the project within the scheduled timeframe.
The federal government has already revoked several road projects handled by Julius Berger Plc. over delays, the latest being the termination of the company’s contract on the Abuja-Kaduna highway due to cost irregularities and missed deadlines.
