FG Terminates Julius Berger’s Abuja-Kaduna Road Contract

By Usman Amino

The Federal Ministry of Works on Monday issued a final termination notice to Julius Berger, the contractor managing Section One of the Abuja-Kaduna-Zaria-Kano Dual Carriageway rehabilitation project, instructing them to exit the site.

 

This decision, which comes with a 14-day deadline, effectively ends any further negotiations, following months of stalled discussions and non-compliance with revised project terms and costs. The ministry highlighted that despite ongoing talks, the construction firm had not resumed work or adhered to directives to remobilize.

 

Director of Press and Public Relations, Mohammed Ahmed, disclosed this in Abuja, confirming the decision was finalized during a ministry management meeting. He noted that the ministry has been engaging Julius Berger for over a year to reach an acceptable agreement, but to no avail.

 

The contract, initially awarded to Julius Berger in December 2017 and flagged off in 2018, was meant to rehabilitate the major dual carriageway connecting Abuja, Kaduna, Zaria, and Kano. While significant progress has been made on the Kaduna-Zaria and Zaria-Kano sections, the Abuja-Kaduna stretch has lagged, with just 27% completion over the past six years.

 

Minister of Works, Dave Umahi, had previously expressed frustration with the project’s slow pace, accusing Julius Berger of politicizing the project to negatively impact the current administration’s reputation. Although both sides sought to find common ground, no final agreement was reached, and the contractor reportedly missed a scheduled meeting with ministry officials on Monday.

 

In an official statement, the ministry outlined the reasons for the termination: “Due to non-compliance with the updated cost, scope, and terms, along with work stoppage and refusal to return to the site as directed, the Federal Ministry of Works has issued a 14-day Termination Notice to Julius Berger Plc regarding Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, effective November 4, 2024.”

 

The project was initially valued at N155.75 billion and involved three sections, with Sections II (Kaduna-Zaria) and III (Zaria-Kano) partially completed and handed over at the end of former President Muhammadu Buhari’s administration. Section I was later divided into two phases, with one segment awarded to Dangote Industries for completion on reinforced concrete pavement, while the remaining 127 km remained under Julius Berger’s scope.

 

In September 2024, the Federal Executive Council approved a re-scoping and cost reduction for the project, lowering the contract value from N797.26 billion to N740.79 billion. Despite this adjustment, both parties failed to reach a consensus on the revised terms.

 

The ministry noted that President Bola Tinubu’s administration, under the Renewed Hope Agenda, aims to complete this vital infrastructure project to alleviate road challenges for Nigerians. Over the past 16 months, Minister Umahi has revoked 11 contracts as part of efforts to ensure project compliance and accountability.

 

 

(Culled from PUNCH)

 

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