The Federal Government of Nigeria has made the significant decision to revoke a portion of the Abuja-Kaduna highway contract previously awarded to Julius Berger, a leading construction firm. This action follows several years of slow progress on the key highway project, which was initially awarded in 2018 during the administration of former President Muhammadu Buhari.
While portions of the highway, including the Kaduna-Zaria section, have been completed, and the Zaria-Kano segment is nearing completion, work on the Abuja-Kaduna stretch has lagged behind. The highway, essential for national transportation and security, has seen only 27% progress over the past six years. This lack of significant development on such a vital route appears to have prompted the government to intervene.
During the official inauguration of the highway’s rehabilitation project on Thursday, October 17, Minister of Works Senator David Umahi criticized Julius Berger for its slow pace of work. He accused the company of “playing politics” with the project and claimed that the delays were exacerbated by repeated demands for increased funding.
“Berger said to do this entire job, it needs N1.5 trillion,” Umahi revealed. He explained that the government had been in negotiations with Julius Berger since September of the previous year, exchanging letters on a weekly basis to address the growing concerns over the project’s delays. “Eventually, we told them that despite the ones they are requesting, it would still take them four years to complete as there have been traffic jams and kidnappings on the road,” Umahi added.
The Minister further disclosed that the Federal Executive Council (FEC) had revised the project’s cost to N740 billion in an effort to meet the company’s financial demands. However, he said that Julius Berger continued to delay the project and later requested additional funds. “We presented the option of balkanising the road into three, which the President approved. When we did that, Berger accepted it and the rate. But we did not know they were playing games by continuing to play delay tactics,” Umahi said.
Frustrated with the company’s approach, Umahi revealed that Julius Berger had returned with a new demand for N903 billion, a request that the government refused to accept. “Later, they came back that they wanted an increase to N740bn. We went to FEC and they gave approval, only for them last week to say they need another increase to N903bn,” Umahi explained. He firmly rejected the latest request, saying that approving such an increase would set a dangerous precedent, potentially leading to further price hikes on infrastructure projects.
“Our position is that we are not increasing this project for Julius Berger beyond N740bn. The game is over,” Umahi declared. He warned that if the company could not deliver within the agreed terms, the contract would be reassigned to other contractors capable of completing the project at the same quality and a lower cost. He also stated that the highway’s completion would add 7.5 kilometers in Kogi and Kano States to the 375-kilometer dualized road.
In an earlier statement, Engineer Bakare, the Ministry of Works’ Director of Highway Construction, explained that the project had been “de-scoped,” meaning that the remaining sections would be re-awarded to other companies. Dangote Group and BUA Cement have been selected to handle portions of the project. Dangote will oversee a 38-kilometer stretch of the dual carriageway in section one of the highway, at a cost of N145 billion, with an estimated 14-month completion timeframe.
The Abuja-Kaduna highway project, originally funded by the Presidential Infrastructure Development Fund (PIDF), will now be financed through the Tax Credit Scheme.
