Nigerian govt gives Julius Berger 7-day ultimatum over N740.7bn Abuja-Kaduna road project

The Federal Government and Julius Berger Nigeria Plc are locked in a heated dispute over the N740.7 billion Section II Abuja-Kaduna Road project.

Minister of Works, Engr. Nweze David Umahi, has issued a seven-day ultimatum to Julius Berger to accept the government’s reviewed contract sum of ₦740,797,204,713.25 or risk forfeiting the contract.

This was contained in a statement signed by the Minister’s Special Adviser (Media), Orji Uchenna Orji, on Wednesday.

Umahi expressed frustration over Julius Berger’s delays, despite approved funds, which have caused hardship for road users and tarnished the government’s reputation. “So, if Berger is not doing it, then let’s have other people do the job and within the time that we can control price,” he stated.

The minister highlighted that the company’s pricing demands have increased from ₦710 billion to ₦740 billion due to delays. Umahi emphasized that further delays would only benefit Julius Berger, not the Ministry of Works.

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Julius Berger had initially requested N1.5 trillion for the project, which was later reviewed to N740 billion by the Federal Executive Council (FEC). However, the company has since requested additional increases to N903 billion.

Orji noted the the minister’s displeasure that Julius Berger Plc, which has had years of patronage by Federal Government and sub-national governments, is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges.

He, therefore urged the contractor to within 7 days accept or reject the approved reviewed contract sum for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road or face contract determination as Federal Government can not be held to ransom by the desire for unrealistic pricing and augmentation by contractors.

Umahi urged Julius Berger to demonstrate “corporate patriotism” by accepting the approved contract sum.

“This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months.

“I’m sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.”

The contract, awarded in 2018, involves rehabilitating the 82km Section II of the Abuja-Kaduna-Zaria-Kano road. With only 27% progress in six years, the government has grown impatient.

The Ministry of Works has already de-scoped parts of the project, re-awarding sections to Dangote and BUA. The project’s funding has shifted from the Presidential Infrastructure Development Fund (PIDF) to the Tax Credit Scheme.

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