The Federal Government, through the Ministry of Works, has directed the contractor Julius Berger to evacuate the site of the Abuja-Kaduna-Zaria-Kano Dual Carriageway project following a 14-day final termination notice issued on November 4, 2024. The decision comes after the company’s ongoing non-compliance with the project’s terms, including a stoppage of work and refusal to remobilize to the site as instructed.
In a statement released by the Director of Press and Public Relations, Mohammed Ahmed, it was made clear that the termination was final, dismissing any possibility of further negotiations. “Based on non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilise to site, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger Plc,” the statement noted.
The ministry has been in discussions with Julius Berger for over 13 months, seeking to reach an agreeable position regarding the contract. However, negotiations failed to yield significant progress, prompting the government to take decisive action. The minister of works, David Umahi, had previously warned of the potential revocation of the contract awarded in 2018 during former President Muhammadu Buhari’s administration.
While the Kaduna-Zaria section of the road has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna section has only achieved 27% progress over the last six years. This slow advancement has raised concerns regarding the management of the project.
At a recent event, Umahi accused Julius Berger of “playing politics” with the highway, suggesting that the company’s actions were intended to undermine the current administration. Despite these accusations and the ongoing discussions, the construction company did not attend a scheduled meeting with the ministry on the day the termination notice was issued.
The statement further explained the history of the contract, which was initially awarded on December 20, 2017, at an initial sum of N155.75 billion. The project was divided into three sections, with phases undergoing various changes and approvals over the years. The ministry also noted that it had taken steps to redesign and rescope the contract to address the ongoing delays.
“The alignment was divided into two, with one phase redesigned to be on continuously reinforced concrete pavement,” Ahmed explained. Phase 1 of the new scope was flagged off on October 17, 2024, with a completion period of 14 months.
Mohammed also highlighted the urgency behind the decision, stating, “Due to the socio-economic importance of the road as a vital artery connecting Abuja and the FCT to the North, the Ministry conveyed the approval for a final offer to the company.” The ministry offered a revised contract sum of N740.79 billion, emphasizing that Julius Berger needed to accept this within a specified timeframe or face termination.
Despite the government’s efforts to reach a resolution, the contractor’s lack of compliance ultimately led to the termination. “It is a sad commentary on the company that rather than accepting the offer, they tinkered with the bills of quantities and engineering measurements,” the statement added.
This latest development marks the revocation of 11 contracts by Minister Umahi in just 16 months, reflecting a broader push by the government to ensure the timely completion of critical infrastructure projects across the nation.
