The Nigerian Minister of Works, David Umahi, has issued a seven-day ultimatum to construction company Julius Berger, urging them to accept a new contract offer of N740.79 billion for completing an 82-kilometer section of the Abuja-Kaduna-Zaria-Kano road.
The section in question is part of the larger road project and has faced significant delays, with only 27% of the Abuja-Kaduna stretch completed after six years of work. If Julius Berger does not agree to the new terms, the contract could be terminated.
The ultimatum was delivered during a meeting at the Ministry of Works in Abuja, where the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, and the outgoing Managing Director, Dr. Lars Richter, paid a courtesy visit to Minister Umahi. The visit was primarily to introduce Dr. Lubasch as the new head of the company.
According to a statement from Orji Uchenna, the Special Adviser (Media) to the Minister of Works, the contract negotiation has been ongoing for over a year without any conclusion. Minister Umahi expressed his frustration over the delays, noting that the government had already approved the funds through the Federal Executive Council, and any further delay would not be acceptable.
The Abuja-Kaduna-Zaria-Kano road project was originally awarded to Julius Berger in 2018 under the administration of former President Muhammadu Buhari. While some sections of the road, such as the Kaduna-Zaria stretch, have been completed, the progress on the Abuja-Kaduna segment has been far slower.
At a previous event, Umahi accused Julius Berger of using political tactics to stall the project, potentially causing embarrassment for the current government. He warned that if Julius Berger cannot meet the new terms, the contract would be handed to another company capable of delivering the work within the set timeframe and cost limits.
“If Berger cannot do it, let’s find others who can and within a timeframe where we can control costs,” Umahi said. “The price has risen from N710bn to N740bn due to these delays, and if this continues, it will become a problem for the Ministry of Works.”
Umahi criticized Julius Berger for their failure to finalize the contract despite benefiting from government support in the past. He emphasized that the government cannot continue to be held back by contractors pushing for unrealistic price hikes.
“This offer is not subject to any conditions,” he said. “If negotiations have dragged on for 14 months with no resolution, it’s time to end the discussion. A businessperson knows that negotiations must eventually conclude.”
“Several Berger projects have already been terminated due to site abandonment, and we must act because Nigerians are suffering and blaming the President. We cannot let this continue.”
