Federal Government Revokes Another Julius Berger Contract
The Federal Government has terminated Julius Berger’s contract for the rehabilitation of the Abuja-Kaduna section of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, citing non-compliance and performance issues. The decision, announced by the Director of Press at the Ministry of Works, Mohammed Ahmed, follows Julius Berger’s absence from a key meeting to finalise the project cost, which the government revised to N740 billion.
According to Ahmed, the Ministry had summoned Julius Berger for discussions on 4th November 2024 to negotiate the revised contract sum and project scope. However, the construction company’s failure to attend led the Ministry to issue a formal 14-day notice of termination.
“It is a sad commentary on the Company that rather than accepting the offer, they tinkered with the Bills of Quantities,” Ahmed stated. He noted that despite constant negotiations over the past year, the Ministry and Julius Berger could not reach an agreeable solution. The original contract, awarded in 2018 with a budget of N155.7 billion and a completion date of 36 months, has seen repeated delays and cost escalations, reaching over N600 billion while less than 50% of the project has been completed.
The Ministry of Works, in a recent move to advance the project under President Bola Ahmed Tinubu’s Renewed Hope Agenda, revised the contract into two phases. Phase 1, comprising 38 kilometres of continuously reinforced concrete pavement, was awarded to Dangote Industries and officially commenced on 17th October 2024, with a targeted completion timeline of 14 months. The remaining 127 kilometres were allocated to Julius Berger, pending the company’s acceptance of the final offer.
“Due to the socio-economic importance of this road, the Ministry offered Julius Berger a final contract sum of N740.7 billion and conveyed this to the company on 23rd October 2024,” Ahmed said, highlighting the government’s commitment to completing the critical infrastructure. However, the company’s continued absence from negotiations has now resulted in contract termination based on “effluxion of time and non-performance.”
With this termination, the Ministry underscores its commitment to delivering the project in line with the renewed infrastructure agenda aimed at alleviating the hardships faced by road users in the region. Judge Allows Elon Musk’s $1 Million Daily Sweepstakes to Continue Amid Election Controversy
