THE Federal Government has canceled the ₦740 billion contract for the rehabilitation of the Abuja-Kaduna dual carriageway with Julius Berger (Nig.) Plc due to non-performance.
Last month, the Minister of Works David Umahi issued a seven-day ultimatum to the company to accept the government’s offer of ₦740.79 billion to complete the 82km section II of the road.
Umahi expressed concern that the delay in mobilizing to the site, despite the Federal Executive Council’s approval of funds, was causing significant hardship for road users and that the Federal Government was adversely affected by the situation.
In a statement yesterday, Mohammed Ahmed, the Director of Press and Public Relations at the Federal Ministry of Works, announced that the contract was terminated after the notice of termination sent to the company expired.
The ministry noted that multiple discussions over several months had not led to any progress.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna section has only progressed by 27 percent over the past six years.
Umahi at an event two weeks ago also accused the company of politicizing the highway to undermine the current administration’s reputation.
The statement released yesterday noted, “Due to non-compliance with the revised cost, scope, and terms, work stoppage, and refusal to remobilize to the site as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger (Nig.) Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in the FCT, Kaduna, and Kano States, under Contract No. 6350, Section I (Abuja-Kaduna), effective today, November 4, 2024.
“The decision, reached during a management meeting of the Ministry after several months of unsuccessful negotiations, was based on a lack of meaningful progress. The Ministry has engaged in ongoing discussions with the company for the past 13 months in hopes of finding a satisfactory resolution.
“Nigerians should know that the contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, divided into three sections, was awarded to the company on December 20, 2017, with an initial flag-off by then-Minister of Power, Works and Housing, H.E. Babatunde Raji Fashola, for ₦155,748,178,425.50 on June 18, 2018. Sections II (Kaduna-Zaria) and III (Zaria-Kano) were partially completed and handed over during the final days of former President Muhammadu Buhari’s administration.
“Soon after, there were multiple variations and adjustments, leading the current Minister of Works to direct a redesign and rescoping of Section I of the contract.
“The alignment was divided into two phases, with one redesigned for continuously reinforced concrete pavement (CRCP) and the other remaining with asphalt pavement. Approval was granted for Section I, Phase 1, a 38-kilometer stretch using concrete pavement, to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 kilometers stayed with the original contractor.
“Phase 1 was flagged off on October 17, 2024, with a 14-month completion timeline.
“Due to the contract stalemate and the commitment of His Excellency, President Bola Ahmed Tinubu, GCFR, as part of the Renewed Hope Agenda for infrastructure development, to complete this important project and reduce the suffering of Nigerians on this route, the Ministry redesigned the scope and secured approval from the Federal Executive Council (FEC).
“The award for the re-scoping and downward review of the contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna, and Kano States (Contract No. 6350, Section I – Abuja-Kaduna), was reduced from ₦797,263,523,738.87 to ₦740,797,204,173.25 and approved by the FEC on September 23, 2024, with notification to the company on October 3, 2024.
“Recognizing the socio-economic importance of this road as a critical link between Abuja, the FCT, and the North, the Ministry communicated the Final Offer regarding the Abuja-Kaduna Dual Carriageway to the company on October 23, 2024, urging them to formally agree to the revised contract sum of ₦740,797,204,173.25 within seven days, or face contract termination.
“Regrettably, rather than accepting the offer, the company opted to alter the Bills of Quantities and Engineering Measurements and Evaluation in a letter to the Ministry dated October 29, 2024.
“The company was summoned for a meeting with Ministry management on November 4, 2024, but failed to attend, leading to the contract’s termination due to the expiration of the notification period and non-performance.”
