Government Moves To Terminate Julius Berger’s N740bn Abuja-Kano Contract Over Non-Compliance

The federal government on Monday announced a final 14-day termination notice to Julius Berger Nigeria Plc on the contract for section 1 of the Abuja-Kaduna-Zaria-Kano dual carriageway valued at about N740 billion.

A statement by the Director, Press and Public Relations in the ministry, Mohammed Ahmed, said the decision was based on non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilise to site as directed.

 According to the federal government, the decision was borne out of several months of back and forth without any meaningful progress reached at a   management meeting of the ministry.

The ministry stated that it had in the last 13 months been in constant talks with the company, in order to reach an amiable position on the said alignment but to no avail.

“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 20th December, 2017 and flagged off by the then Minister of Power, Works and Housing, Babatunde Fashola at an initial  sum of N155.7 billion 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.

“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 (CRCP), while the remaining is with asphaltic pavement.

“Approval for the Section I, Phase 1 for a length of 38 kilometres on concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 kilometres remained with the substantive contractor. The Phase 1 was flagged off on  October 17, 2024 with a 14-month completion period.

“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 statement said.

The award for the re-scoping and downward review of contract for the rehabilitation of the contract in favour of Messrs Julius Berger (Nig.) Plc from the sum of N797.2 billion to N740.7, it said, was granted by FEC on September 23, 2024 and conveyed to the company on  October 3, 2024.

It added that due to the socio-economic importance of the road as a vital artery connecting Abuja to the North, the ministry conveyed the approval for a final offer on the road on October 23, 2024.

It stated that the construction firm  was requested to agree in writing to accept the reviewed contract sum of N740.7 within seven days or risk the termination of the said contract.

“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 company was summoned for a meeting with the management of the ministry, today (Monday) November 4, 2024 but refused to show up, hence the (planned) termination of the contract  based on effluxion of time and non- performance,” the federal government stated.

Emmanuel Addeh

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