Categories: News

Nigeria Govt Terminates Julius Berger’s Contract, Saves N640bn on Road Project

The Minister of Works, Dave Umahi, has explained that Nigeria stands to save N640 billion by terminating Julius Berger’s contract for the construction of the Abuja-Kaduna-Zaria-Kano road.

EKO HOT BLOG reports that Umahi made this statement while appearing before the House of Representatives Ad Hoc Committee to defend the government’s decision. He recalled that in November 2024, he announced the termination of Julius Berger’s contract for failing to meet the stipulated contractual conditions.

In a subsequent development, the Nigerian Senate issued an arrest warrant for Julius Berger after the company failed to honor an invitation.

Explaining further why the contract was terminated, Umahi stated that the road project awarded to Julius Berger was halted due to the company’s failure to adhere to the terms of the agreement. The minister also expressed dissatisfaction with how the project had been handled over the past seven years.

“Through my intervention, I saved the nation N640 billion from Julius Berger. We would have spent N1.5 trillion if we had continued with them,” Umahi said.

He added, “We are now saving over N640 billion and improving the road’s design. The issue with Julius Berger wasn’t just about cost; we had set clear terms for the project, including a 14-month completion deadline.”

Umahi emphasized that the contract was non-negotiable, except in cases where the exchange rate exceeded N2000 per dollar. However, he claimed that Julius Berger refused to comply with these terms and had placed unnecessary obstacles in the process.

“We exercised our rights as executives and terminated the contract. They were treated fairly,” he concluded.

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James Agbenu

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