The Federal Government has officially cut ties with Messrs Julius Berger (Nig.) Plc. This announcement comes after a review of the contract’s value was done.

Initially, it was valued at N740 billion, but the Federal Executive Council recently reviewed it to N740.797 billion.

Why We Terminated Julius Berger’s Contract for Abuja-Kaduna Project

On November 4, 2024, the Ministry of Works issued Julius Berger a 14-day termination notice.

This notice is due to ongoing disagreements about project changes, cost adjustments, and the company’s repeated delays in getting back to work on-site.

Unfortunately, Julius Berger was unwilling to comply with the Federal government within the 14-day notice, which resulted in the termination of the contract.

The decision was made during a management meeting after over 13 months of ongoing discussions to reach an agreement with the company.

In a statement made on November 4, 2024, Mohammed Ahmed, director of press at the Ministry of Works, said, “Due to ongoing issues such as non-compliance with updated costs, project scope, and terms.

Along with halting work and failing to resume despite orders, the Federal Ministry of Works issued Julius Berger Nigeria Plc a 14-day termination notice.

This notice applies specifically to the Abuja-Kaduna section of the Abuja-Kaduna-Zaria-Kano highway rehabilitation project (Contract No. 6350).”

Ahmed added, “Nigerians may want to know that the contract to repair the Abuja-Kaduna-Zaria-Kano dual carriageway was awarded in three parts.

The company was awarded the contract on December 20, 2017. Babatunde Fashola, the former Minister of Power, Works, and Housing, officially launched it on June 18, 2018, with an initial budget of N155.75 billion.

Sections II (Kaduna-Zaria) and III (Zaria-Kano) were partially completed. These sections were handed over towards the end of former President Muhammadu Buhari’s administration.

What the Minister of Works, David Umahi Had To Say About Julius Berger’s Actions

Source: @Governor David Umahi/ Facebook

Before Julius Berger’s contract was terminated, the Minister of Works, David Umahi, gave the company a seven-day deadline to accept the government’s offer of N740.79 billion to complete the 82km section II of the road.

Unfortunately, the offer was not accepted. A few days later, Minister Umahi expressed frustration over the company’s ongoing delay in getting back to the construction site.

This delay happened despite the Federal Executive Council having already approved the necessary funds. Umahi noted that this delay is creating real difficulties for people who use the road. This is also affecting the Federal Government negatively.

During an event two weeks ago, Umahi accused the company of playing politics with the highway project. He went on to say that it is an attempt to damage the current administration’s reputation.

More About The Abuja-Kaduna-Zaria-Kano Toad Project

The Abuja-Kaduna-Zaria-Kano road project is a big construction project aimed at fixing and improving one of Nigeria’s busiest highways.

This road is important because it connects several states and is heavily used by people, businesses, and transport vehicles.

The project started in 2017 when the government hired Julius Berger, a major construction company, to handle it. They divided the project into three main sections to make it easier to manage:

1. Abuja to Kaduna (Section I)
2. Kaduna to Zaria (Section II)
3. Zaria to Kano (Section III)

At first, the cost was set at around ₦155 billion, but as they worked, the costs kept rising. The project now costs about ₦740 billion because of changes in design, materials, and other adjustments along the way.

Sections II and III—the Kaduna-Zaria and Zaria-Kano parts—made some progress and were even handed over to the government for use toward the end of the last administration.

However, the first part, from Abuja to Kaduna, has faced many delays and problems. This section still isn’t done. And that’s been a big issue, especially because many people and businesses depend on this road for daily travel and trade.