Nigerian Government Terminates Julius Berger Company’s N740billion Road Contract, Cites Delays, Non-Compliance
The termination notice was issued by the Federal Ministry of Works in Abuja on November 4, 2024.
The President Bola Tinubu-led Nigerian government has officially terminated the N740billion contract awarded to Julius Berger Nigeria Plc for the rehabilitation of the Abuja-Kaduna section of the Abuja-Kaduna-Zaria-Kano dual carriageway, citing delays and non-compliance with revised terms and scope.
The termination notice was issued by the Federal Ministry of Works in Abuja on November 4, 2024.
In a statement released by Mohammed Ahmed, Director of Press and Public Relations for the ministry, the government clarified that the decision stemmed from Julius Berger’s “stoppage of work and refusal to remobilize to site” despite directives to resume operations.
“The Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger (Nig.) Plc for the rehabilitation of Abuja-Kaduna-Zaria-Kano dual carriageway in FCT, Kaduna, and Kano states, contract No.6350, Section I (Abuja-Kaduna),” the statement read.
Ahmed further explained that months of negotiations failed to produce results, leading to the ministry’s decision to end the contract.
This follows a series of management meetings within the ministry to address concerns over delays, cost reviews, and incomplete work on the critical northern highway.
The statement read, “The ministry has in the last 13 months been in constant talks with the company, in order to reach an amiable position on the said alignment but to no avail.
“Nigerians may wish to know that the Contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual carriageway, which was divided into three (3) Section was awarded to the company on 20th December, 2017and flagged off by the then Minister of Power, Works and Housing, Babatunde Fashola, at an initial sum of N155.748,178,425.50 billion on 18th June, 2018.
Ahmed said, “Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partially completed and handed over during the twilight of the administration of former President Muhammadu Buhari.
“Since then it has been one variation and augmentation or the other and finally, the present minister of works directed the redesigning and re-scoping of the Section I of the contract.
“The alignment was divided into two with one phase redesigned to be on continuously reinforced concrete pavement, CRCP, while the remaining with asphaltic pavement.
“ Approval for Section I, Phase 1 for a length of 38 (thirty-eight) kilometres on the concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 (one hundred and twenty-seven) kilometres remained with the substantive contractor.
He said the Phase 1 was flagged off on October 17, 2024, with a 14-month completion period.
“Due to the stalemate of the contract and, most importantly, the desire of His Excellency, President Bola Ahmed Tinubu, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project, also to alleviate the sufferings of Nigerians plying the road, the ministry re-scoped it and got the approval of the Federal Executive Council, FEC.
Ahmed explained that the award for the re-scoping and downward review of the contract for the rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna) in favour of Messrs Julius Berger (Nig.) Plc from the sum of N797,263,523,738.87 (seven hundred and ninety-seven billion, two hundred and sixty-three million, five hundred and twenty-three thousand, seven hundred and thirty-eight naira eighty-seven kobo) to N740,797,204,173.25 was granted by FEC on September 23, 2024, and conveyed to the company on October 3, 2024.
“As due to the socio-economic importance of the road as a vital artery connecting Abuja, the FCT to the north, the ministry conveyed the approval for a final offer on the Abuja-Kaduna dual carriageway to the company on October 23, 2024, stating that it should agree, in writing, to accept the reviewed contract sum of N740,797,204,173.25 within seven days or risk the termination of the said contract.
“It is a sad commentary on the company that rather than accepting the offer, they tinkered with the bills of quantities, as well as that of engineering measurements and evaluation via a letter to the ministry dated October 29, 2024. The company was summoned for a meeting with the Management of the Ministry, today (yesterday), November 4, 2024, but refused to show up, hence the termination of the contract based on effluxion of time and non- performance,” he added.
