Our reporter
The Federal Government has canceled its ₦740 billion contract with Julius Berger Nigeria Plc for the rehabilitation of the Abuja-Kaduna dual carriageway, citing the company’s continued non-compliance and delay in mobilizing resources for the project.
The decision, announced on Monday by the Federal Ministry of Works, came after an ultimatum issued by the Minister of Works, David Umahi, to Julius Berger to accept a revised contract offer within seven days.
The ultimatum followed months of stalled discussions on the project’s cost, scope, and deadlines, which led the Ministry to issue a formal Notice of Termination. According to the Ministry’s spokesperson, Mohammed Ahmed, the contract was terminated after these negotiations failed to yield any tangible progress on the road’s rehabilitation.
In his initial notice, Minister Umahi expressed frustration over the contractor’s slow pace and failure to meet targets, which has impacted road users, especially along the Abuja-Kaduna section, where progress has stalled at just 27 percent over the last six years.
While work on other sections of the highway, specifically the Kaduna-Zaria and Zaria-Kano portions, is nearing completion, the Abuja-Kaduna section has lagged significantly.
During a recent event, Umahi criticized Julius Berger for allegedly politicizing the project, implying that the company’s lack of action might have been aimed at casting the current administration in a negative light.
A statement from the Ministry clarified, “The Ministry has, over the last 13 months, been engaged in constant dialogue with Julius Berger to finalise terms for the project. However, these talks have repeatedly stalled, leaving road users to suffer the consequences of the incomplete highway.”
The Abuja-Kaduna-Zaria-Kano road contract, originally awarded in 2017 under the administration of former President Muhammadu Buhari, was initially valued at ₦155.7 billion.
The project was meant to enhance critical infrastructure along a key route connecting the Federal Capital Territory to the northern region of Nigeria. Subsequent adjustments, including re-designing part of the road for a concrete pavement section handled by Dangote Industries, led to cost revisions and a new completion period.
In September 2024, the Federal Executive Council approved a re-scoped contract worth ₦740.79 billion for the project, which Julius Berger declined, citing discrepancies in the revised cost structure.
After the company missed a final meeting scheduled by the Ministry on November 4, the termination became effective due to the expiration of the agreed deadline.
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