The Federal Government (FG), has issued a 14-day termination notice to Julius Berger Nigeria Plc over non-compliance issues related to the N740 billion Abuja-Kano road project.
Announced on Monday, the notice affects the contract for Section 1 of the Abuja-Kaduna-Zaria-Kano dual carriageway, valued at approximately N740 billion. According to a statement by the Director of Press and Public Relations, Ministry of Works, Mohammed Ahmed, the termination decision follows the contractor’s non-compliance with revised project costs, scope, and terms, coupled with work stoppages and a failure to return to the site as directed.
The government explained that despite 13 months of continuous negotiations with Julius Berger, efforts to reach an agreement were unfruitful, prompting the ministry’s management to conclude on termination after several months of stalled discussions.
“To inform Nigerians,” the statement read, “the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, split into three sections, was awarded on December 20, 2017, and inaugurated by then-Minister of Power, Works and Housing, Babatunde Fashola, at an initial cost of N155.7 billion on June 18, 2018.”
Sections II (Kaduna-Zaria) and III (Zaria-Kano) were completed and handed over during the last days of former President Muhammadu Buhari’s administration. However, subsequent variations and augmentations have complicated the project’s progression.
The present Minister of Works directed a redesign and re-scoping of Section I, splitting it into two phases. One phase was redesigned with a Continuously Reinforced Concrete Pavement (CRCP), while the remaining would use asphaltic pavement. Approval was given for Phase 1 (38 kilometers of concrete pavement) to Messrs Dangote Industries Nigeria Ltd., while the remaining 127 kilometers remained with Julius Berger. The Phase 1 segment was flagged off on October 17, 2024, with a 14-month completion timeline.
The government emphasized that the re-scoping and contract revisions were aligned with President Bola Tinubu’s Renewed Hope Agenda for infrastructure, aimed at completing this crucial project and easing the burden on Nigerians using the road. A revised contract sum of N740.7 billion was approved by the Federal Executive Council (FEC) on September 23, 2024, and formally communicated to Julius Berger on October 3, 2024.
Highlighting the road’s strategic importance as a primary route linking Abuja to the North, the ministry issued a final contract offer to Julius Berger on October 23, 2024, giving them seven days to accept the revised contract terms or face termination.
“Instead of accepting the reviewed terms, the company responded on October 29, 2024, with adjustments to the bills of quantities and other project evaluations,” the statement added.
The ministry scheduled a meeting with Julius Berger’s management on Monday, November 4, 2024, but the company failed to attend. Citing time expiration and non-performance, the Federal Government proceeded with contract termination plans.
