The Federal Government has taken action by issuing a termination letter to Julius Berger PLC, effectively ending their contract for the construction of the Abuja-Kaduna-Zaria-Kano road project. This decision comes after a lengthy dispute over contract terms, with the government citing non-compliance with revised terms, project scope, and failure to remobilize to the site as directed.
The Abuja-Kaduna-Zaria-Kano road project was awarded to Julius Berger in 2017 at an initial cost of N155.75 billion. However, the project has been plagued by variations, augmentations, and redesigns, resulting in a revised cost of N740.79 billion. Despite completing sections II and III, the company had only achieved 27% completion on section I after six years.
According to the Federal Ministry of Works, Julius Berger’s termination was due to:
– Non-compliance with reviewed cost, scope, and terms
– Stoppage of work and refusal to remobilize to site
– Failure to agree on contract terms despite government approval
This termination marks the 11th contract revoked by Works Minister David Umahi in 16 months. The government’s decision is seen as a commitment to President Bola Tinubu’s Renewed Hope Agenda infrastructure initiative, aiming to alleviate Nigerians’ suffering on the road.
The ministry will likely reassign the project to another contractor to ensure its completion.
