FG Revokes Julius Berger’s Abuja-Kaduna Highway Contract

The Federal Government has issued a 14-day termination notice to Julius Berger Nigeria Plc regarding their contract for section 1 of the Abuja-Kaduna-Zaria-Kano dual carriageway, valued at approximately N740 billion, citing non-compliance and work stoppage.

Mohammed Ahmed, Director of Press and Public Relations at the Ministry of Works, announced that the decision followed months of unsuccessful negotiations with the construction giant. The ministry has reportedly spent the last 13 months attempting to reach an agreement with the company regarding project alignment.

The project’s history dates back to December 20, 2017, when the contract was initially awarded and subsequently flagged off by then-Minister of Power, Works and Housing, Babatunde Fashola, with an initial budget of N155.7 billion on June 18, 2018.

According to the ministry’s statement: “Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partially completed and handed over during the twilight of the administration of former President Muhammadu Buhari. Since then it has been one variation and augmentation or the other.”

The current Minister of Works initiated a redesign and re-scoping of section I, dividing the alignment into two phases. The first phase, utilizing Continuously Reinforced Concrete Pavement (CRCP), was awarded to Dangote Industries (Nig.) Ltd for a 38-kilometer stretch, while Julius Berger retained responsibility for the remaining 127 kilometers.

The ministry explained: “Due to the stalemate of the contract and, most importantly, the desire of President Bola Tinubu, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project, also to alleviate the sufferings of Nigerians plying the road, the ministry re-scoped it and got the approval of the Federal Executive Council (FEC).”

The Federal Executive Council approved a downward review of the contract from N797.2 billion to N740.7 billion on September 23, 2024, which was communicated to Julius Berger on October 3, 2024.

The company was given seven days to accept the revised contract sum in writing or face termination.

However, the ministry noted: “It is a sad commentary on the company that rather than accepting the offer, they tinkered with the bills of quantities, as well as that of engineering measurements and evaluation via a letter to the ministry dated 29, October, 2024.”

The situation reached a critical point when Julius Berger failed to attend a scheduled management meeting on Monday, November 4, 2024, leading to the ministry’s decision to initiate termination proceedings based on “effluxion of time and non-performance.”