Nigeria’s Federal Ministry of Works has ordered Julius Berger to leave the construction site of the Abuja-Kaduna-Zaria-Kano highway project, citing persistent delays and failure to comply with project terms. The contract’s termination notice, issued Monday, marks the end of extensive, unfruitful negotiations between the ministry and the contractor.
The Ministry of Works stated that this decision followed Julius Berger’s inability to adhere to revised costs, scope, and other terms of the contract. Despite ongoing discussions aimed at resolving the issues, the company reportedly stopped work and failed to return to the project site, prompting the government’s intervention.
According to a statement from Mohammed Ahmed, the Director of Press and Public Relations, the termination notice was the outcome of a recent management meeting within the ministry. This follows months of repeated efforts by the ministry to find a resolution.
The statement read in part, “Based on non-compliance with the reviewed cost, scope, and terms, stoppage of work and refusal to remobilise to the site, as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna), today, November 4, 2024.
“Nigerians may wish to know that the Contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, which was divided into three Sections was awarded to the company on December 20, 2017, and flagged off by the former Minister of Power, Works, and Housing, Babatunde Fashola at an initial sum of N155.75bn on June 18, 2018. 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 and finally, the present Minister of Works directed the redesigning and re-scoping of the Section I of the contract. The alignment was divided into two with one phase redesigned to be on continuously reinforced concrete pavement, while the remaining with asphaltic pavement.
“Approval for Section I, Phase 1 for a length of 38km on the concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127km remained with the substantive contractor. Phase 1 was flagged off on October 17, 2024, with a 14-month completion period.”
He added, “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.
“The award for the Re-scoping and Downward Review of Contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna) in favour of Messrs Julius Berger Plc from the sum of N797.26bn to N740.79bn was granted by FEC on September 23, 2024, and conveyed to the company on October 3, 2024.”
