FG sets seven-day ultimatum for Julius Berger on Abuja-Kaduna road
The Federal Government, led by Minister of Works David Umahi, has issued a seven-day ultimatum to Julius Berger to accept an offer of ₦740.79 billion for the completion of the 82km Section II of the Abuja-Kaduna-Zaria-Kano road.
The ultimatum was presented during a courtesy visit from the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, alongside outgoing Managing Director Dr. Lars Richter, at the Ministry Headquarters in Abuja.
A statement signed by the Special Adviser (Media) to the Minister of Works, Orji Uchenna, on Wednesday, warned that the company risks termination of the contract if the offer is not accepted.
“The Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON, has once again called on Julius Berger Plc to demonstrate corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740,797,204,713.25 (Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo) for the completion of the rehabilitation of the 82 km Section II of the Abuja-Kaduna-Zaria-Kano road, contract No. 6350.”
He lamented that the delay in mobilizing to the site, despite the approved funds by the Federal Executive Council, is causing untold hardship to road users and that the Federal Government is bearing the consequences of the situation.
“So if Berger is not doing it, then let’s find others to complete the job within a timeframe we can control the pricing. We’ve received more than 20 letters from Berger on this matter. It feels like a ping pong game with Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. If these delays continue, it becomes a problem for the Ministry of Works.”
The minister expressed dismay that Julius Berger Plc, which has enjoyed years of patronage from the Federal Government and sub-national governments, is not being realistic about contract pricing, especially given Nigeria’s current economic challenges. He urged the contractor to accept or reject the approved revised contract sum for the completion of the rehabilitation of Section II of the Abuja-Kaduna-Zaria-Kano road within seven days, or face contract termination, as the Federal Government cannot be held to ransom by unrealistic pricing demands from contractors.
“This offer is not subject to any conditions. It is final after more than 14 months of negotiations. I apologize for sounding this way, but there must be a conclusion to negotiations. If anyone believes there should be no end to negotiations, that person is not a businessperson. If you have negotiated for 14 months without any result, it’s time to terminate the discussion.”
While welcoming the new Managing Director of Julius Berger Plc, the minister reiterated the need for construction companies working with the Federal Ministry of Works to make sacrifices in terms of value for money and realistic contract pricing, to foster the necessary road infrastructure revolution for the nation’s economic transformation—a key agenda of the Renewed Hope administration under President Bola Tinubu.
He stated, “Several Berger projects have already been terminated due to abandoned sites. We must take action because Nigerians are suffering. They are expressing their frustration, and we cannot allow that to continue.”
The new Managing Director promised to address the issues as soon as possible and expressed hope that a consensus would be reached for the project to commence without further delay.
The outgoing Managing Director noted that the purpose of the courtesy call to the Honourable Minister of Works was to introduce the new Managing Director of the company.
Proofreading by Uchechi Ojo, Sub-editor at Neptune Prime.
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