The Federal Government has terminated the ₦740 billion contract with Julius Berger Nigeria Plc for the rehabilitation of the Abuja-Kaduna dual carriageway due to non-performance.
The decision follows a seven-day ultimatum issued by the Minister of Works, David Umahi, for the company to accept the government’s offer of ₦740.79 billion to complete the 82km Section II of the road. Despite the Federal Executive Council approving the necessary funds, Umahi expressed frustration over the company’s failure to mobilize to the site, noting that the delay has caused hardship for road users and negatively impacted the government.
In a statement issued by Mohammed Ahmed, Director of Press and Public Relations at the Federal Ministry of Works, the contract was terminated after the company’s notice for completion expired on Monday. According to the ministry, while the Kaduna-Zaria section has been completed and the Zaria-Kano section is nearing completion, only 27 percent progress has been made on the Abuja-Kaduna section over the past six years.
Two weeks ago, Umahi had also accused Julius Berger of politicizing the project to damage the reputation of the current administration.
The ministry’s statement read in part, “Due to non-compliance with the reviewed cost, scope, and terms, stoppage of work, and refusal to remobilize to the site as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Julius Berger Nigeria Plc for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna, and Kano States, Contract No.6350, Section I (Abuja-Kaduna), effective today, 4th November 2024.”
The ministry added that despite 13 months of negotiations, the company failed to reach an agreement, with Julius Berger allegedly altering the Bills of Quantities and Engineering Measurements and Evaluation in a letter dated 29th October 2024. The company’s failure to attend a meeting with the ministry’s management on 4th November 2024 further led to the contract’s termination.
