The Federal Ministry of Works has issued a final termination notice to Julius Berger Plc, the contractor responsible for Section One of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, effectively ending the company’s role in the project.
The notice, given on Monday, came after months of stalled negotiations, with the ministry citing Julius Berger’s failure to comply with revised costs, scope, and terms.
The company had halted work and refused to return to the site as directed.
A statement from the ministry’s Director of Press and Public Relations, Mohammed Ahmed, explained that the decision followed a management meeting at the ministry’s headquarters in Abuja.
The ministry emphasized that the contract termination was driven by the urgent need to advance a project that has suffered long delays and minimal progress.
Initially awarded in December 2017 and flagged off in June 2018 under former President Muhammadu Buhari, the N155.75 billion contract was split into three sections: the Abuja-Kaduna, Kaduna-Zaria, and Zaria-Kano stretches. While Julius Berger completed the Kaduna-Zaria segment and is nearing completion on the Zaria-Kano section, progress on the Abuja-Kaduna segment has been slow, reaching only 27 percent in six years.
In recent months, the Federal Ministry of Works, under the leadership of Minister David Umahi, held multiple discussions with Julius Berger, aiming to reach a compromise on revised project terms. The minister had even warned that the contract could be revoked due to delays. Despite these efforts, the ministry noted that Julius Berger did not attend a scheduled meeting on Monday, signaling a breakdown in negotiations.
According to the ministry’s statement, the contract was re-scoped to expedite completion. The Federal Executive Council (FEC) approved a downward review of the project’s cost from N797.26 billion to N740.79 billion. Under the revised plan, the 165-kilometer Abuja-Kaduna section was divided, with 38 kilometers designated for a reinforced concrete pavement handled by Dangote Industries Ltd., while the remaining 127 kilometers remained under Julius Berger. Dangote’s section was flagged off on October 17, 2024, with a 14-month completion timeline.
Explaining the re-scoping decision, Ahmed said, “Due to the contract stalemate and the desire of President Bola Tinubu, as part of the Renewed Hope Agenda, to see this laudable project completed, the ministry got FEC approval for a re-scope and cost adjustment.”
The project has faced delays since its inception, with continuous demands for variations and adjustments in scope.
Umahi recently accused Julius Berger of politicizing the project to hinder the administration’s efforts, suggesting that the company’s delays were detrimental to the government’s reputation.
The Federal Ministry of Works expressed that, with the termination of Julius Berger’s contract, new steps would be taken to ensure timely completion.
The ministry’s actions reflect a renewed commitment to infrastructure projects crucial to Nigeria’s connectivity, with plans to reduce travel times and alleviate the hardships faced by travelers on this vital route.
This termination notice also marks the eleventh contract that Umahi has canceled in his 16 months as Works Minister, underscoring his tough stance on contractors who fail to meet their obligations.