The Federal Government has terminated Julius Berger Construction’s contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, Section I (Abuja-Kaduna), citing a breakdown in negotiations over revised contract terms.
The Director of Press for the Ministry of Works, Mohammed Ahmed, confirmed the decision on November 4, 2024, following the company’s failure to attend a scheduled meeting to discuss the government’s revised contract sum of N740 billion, which Julius Berger had previously rejected.
Ahmed expressed disappointment that Julius Berger had attempted to alter the project’s engineering and cost requirements without approval.
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The government issued a 14-day termination notice based on “non-compliance with reviewed cost, scope, and terms, as well as stoppage of work.” This ends a drawn-out process marked by delays and escalating project costs.
The original contract, awarded to Julius Berger in December 2017 for N155.7 billion, was intended for completion within 36 months. However, six years and multiple budget adjustments later, less than 50% of the work is complete, and project costs have risen above N600 billion.
The ministry attributed the delay to Julius Berger’s inability to accept new cost terms and conditions despite ongoing discussions over the last 13 months.
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In a bid to expedite the road’s completion, the Tinubu administration has restructured the project, with a 38-kilometer segment now assigned to Dangote Industries, leaving 127 kilometers to the primary contractor.
This adjustment aligns with President Bola Tinubu’s Renewed Hope Agenda to advance Nigeria’s critical infrastructure and alleviate travel difficulties on this key route.
Ahmed emphasized the administration’s commitment to completing the project, stressing its socio-economic significance as a major artery connecting Abuja to the northern region.