The Nigerian Government has given Julius Berger Plc a seven-day deadline to accept a revised contract worth N740.8 billion for the rehabilitation of the 82-kilometre Abuja-Kaduna-Zaria-Kano road or risk losing the project.
Minister of Works, David Umahi, announced the ultimatum during a meeting with Julius Berger’s incoming Managing Director, Dr Pier Lubasch, and expressed frustration over delays in project completion.
According to Umahi, the prolonged negotiations have not only increased the cost from N710 billion to N740 billion but also worsened the difficulties faced by road users.
In a statement, Umahi stressed the importance of “corporate patriotism” from Julius Berger, given the company’s long history of government patronage.
The Minister warned that the Nigerian Government cannot be held to ransom by contractors seeking unrealistic pricing, adding that alternative contractors might be engaged to complete the work if Julius Berger fails to comply.
The minister also highlighted the broader need for construction companies to adopt cost-effective practices, especially during challenging economic times. He pointed out that delays by Julius Berger have led to public frustration and harmed the government’s reputation.
Part of the statement reads:
“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 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 Abuja-Kano road project, initially approved in 2017 during the Buhari administration, was designed to enhance transportation across northern states. However, the project remains unfinished despite earlier promises to complete it by 2023.
In August 2024, the government committed to releasing N20 billion monthly for the road’s dualisation, targeting completion within 14 months. Umahi revealed that additional funding had already been allocated, but the lack of progress threatens to derail the project.