Accept N740.7bn for Abuja-Kano highway or face contract termination – FG warns Julius Berger
The Federal Government has issued a stern warning to construction giant Julius Berger Nigeria Plc, urging the company to accept the N740.7 billion budget allocated for completing the remaining section of the Abuja-Kaduna-Kano highway, as approved by the Federal Executive Council (FEC). Minister of Works, Engr. David Umahi, delivered this ultimatum during a recent meeting with Julius Berger representatives, including Executive Director of Projects, Engr. Benjamin Bott.
Engr. Umahi revealed that the government has already disbursed N391 billion for the project, and the new pricing arrangement includes an additional N391 billion to finish the road. He further explained that the Federal Government had revised the original contract value several times, starting from N165 billion and then adjusted to N654 billion during the previous administration of President Muhammadu Buhari.
“Julius Berger initially requested an increase in the project cost to N1.35 trillion,” the Minister noted, “but FEC approved the contract’s re-scoping and a revised cost of N740.7 billion to reflect the current economic conditions.” He warned that if Julius Berger fails to accept the new budget, the government will not hesitate to terminate the contract.
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“We have communicated this to the President,” said Engr. Umahi. “If Julius Berger does not accept the N740 billion, we will terminate the contract. We have already terminated several of their other jobs due to protracted negotiations lasting over a year. There must be a limit to these discussions.”
The Minister also stressed the urgency of accelerating the completion of the 82-kilometre Section II of the Abuja-Kano road project, covering areas in the Federal Capital Territory, Kaduna, and Kano states, and expects the entire project to be concluded within 14 months.
Engr. Umahi assured that the government is ready to release fresh mobilisation funds to support the project, underlining President Bola Tinubu’s commitment to prioritising critical infrastructure development across the nation. “We are prepared to provide additional mobilisation to underline the President’s focus on this project. We are therefore appealing to Julius Berger to sign the addendum by Monday,” he added.
The Federal Executive Council’s re-scoping decision on 23rd September 2024 also included the Bodo-Bonny road project, priced at N80 billion. Engr. Umahi elaborated on the specific scope under Julius Berger’s contract, noting, “Section II, which is 82 kilometres by two lanes, is within the company’s work area. After deducting the N391 billion that’s already been paid, the remaining scope for Julius Berger comes to approximately N340 billion for the 164 kilometres covered by the new contract.”
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