News
Tinubu’s Govt Terminates Julius Berger’s Road Contract
The Federal Ministry of Works has terminated Julius Berger’s contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano road, Section I (Abuja-Kaduna), citing contract disagreements and non-performance.
According to a statement by Mohammed Ahmed, Director of Press at the ministry, the decision came after Julius Berger failed to attend a crucial meeting to resolve issues surrounding the revised contract sum of ₦740 billion, which the company had contested.
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EKO HOT BLOG reports that Originally awarded in 2018 for ₦155.7 billion with a 36-month timeline, the project’s cost surged to over ₦600 billion with less than half of the work completed after six years.
Ahmed noted that despite 13 months of discussions to reach an agreement, Julius Berger remained non-compliant with the restructured scope and terms.
“The ministry found it unacceptable that, rather than accepting the revised offer, the company altered the Bills of Quantities and Engineering Measurements,” Ahmed stated, adding that the company failed to attend the 4th November 2024 meeting, leading to the contract termination due to “effluxion of time and non-performance.”
The ministry has now issued a 14-day termination notice to Julius Berger.
It emphasized the importance of the road, which links Abuja to northern Nigeria, and noted the government’s efforts to accelerate the project as part of President Bola Tinubu’s “Renewed Hope Agenda.”
Ahmed highlighted that alternative arrangements were already in place, with 38 kilometers of the project awarded to Dangote Industries under a revised scope that includes continuously reinforced concrete pavement.
This portion was flagged off in October 2024 with a 14-month completion target, while the remaining 127 kilometers remain assigned to the original contractor.
The revised project cost and scope were approved by the Federal Executive Council (FEC) in September 2024, with a final offer issued to Julius Berger in October.
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