The Federal Government has revoked Julius Berger’s contract for the Abuja-Kaduna highway, citing delays and cost irregularities in the project.
The announcement was made by the Minister of Works, David Umahi, during the inauguration of the rehabilitation of the Abuja-Kaduna-Zaria-Kano road on Thursday in Abuja, as reported by the News Agency of Nigeria (NAN).
The update, according to Umahi, comes as part of a broader review to ensure the efficient execution of critical infrastructure projects.
Umahi revealed that the contract was originally awarded in 2018 under the administration of former President Muhammadu Buhari at a cost of N391 billion.
He explained that while progress has been made on sections of the road, such as the Kaduna-Zaria and Zaria-Kano portions, work on the Abuja-Kaduna stretch has lagged, creating frustration for the government.
“The Federal Government has revoked a section of the Abuja-Kaduna highway contract being handled by Julius Berger over irregularities. The Minister of Works, David Umahi, made this known during the inauguration of the rehabilitation of the Abuja-Kaduna-Zaria-Kano road on Thursday in Abuja.
“Umahi said that the road contract was awarded to Julius Berger in 2018 under former President Muhammadu Buhari for N391 billion.
“The minister said that the Kaduna-Zaria section has been completed and the Zaria-Kano section is almost completed, however, the Abuja-Kaduna section has witnessed slow completion rate in six years,” the NAN report read in part.
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The Minister noted that the current administration initially took over 240 kilometers of Section I of the Abuja-Kaduna road project and extended it by another two kilometers toward Kogi State to address poor road conditions.
To manage costs, the project was divided into three segments after Julius Berger requested N1.5 trillion to complete the entire road within four years.
However, Umahi said that the government, under President Bola Tinubu’s administration, rejected this proposal, opting instead to split the project, which the company accepted.
However, Julius Berger’s handling of the project raised concerns, with the company allegedly employing delays that undermined progress.
Julius Berger initially agreed to a monthly payment plan of N20 billion from the Ministry of Finance to expedite the project.
However, the company later requested a revision, increasing the cost from N710 billion to N740 billion, which the government approved. Despite this adjustment, Julius Berger recently submitted another request to raise the cost to N903 billion, which the government found unacceptable.
Minister Umahi expressed frustration over these demands, warning that the government would no longer tolerate such practices.
The decision to revoke the contract highlights the government’s determination to tackle inefficiencies and ensure contractors meet their obligations within the agreed timelines and budget.