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FG to Terminate Julius Berger Road Contract

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By Adenike Lawal

The Federal Government of Nigeria, through the Minister of Works, Engr. Dave Umahi, has announced a significant financial decision regarding the Abuja-Kaduna-Zaria-Kano road project. The government intends to terminate its contract with Julius Berger, a prominent construction company, which is expected to result in savings exceeding N640 billion. This announcement was made during a session with the House of Representatives Adhoc Committee.

The termination of the contract comes after reports that Julius Berger failed to adhere to the stipulated terms. Minister Umahi expressed dissatisfaction with how the project had been managed over the past seven years, highlighting issues such as delays and inadequate maintenance of road conditions. He emphasized that despite ongoing negotiations with Julius Berger lasting 14 months, the contractor did not meet critical requirements set by the government.

Umahi stated that if the government had accepted Julius Berger’s revised demand of N1.5 trillion due to contract variations, it would have resulted in an unnecessary financial burden on taxpayers. Instead, he indicated that re-awarding the contract for a concrete road would not only save costs but also improve road quality and expedite completion.

The Minister outlined plans for a new bidding process for the project, ensuring transparency and competitiveness. He reassured that all interested contractors, including Julius Berger, would have an opportunity to submit bids for this vital infrastructure project. Additionally, he mentioned enhancements such as solar lighting and CCTV installations as part of future developments on this route.

During the committee meeting, Rep. Aminu Sani Jaji raised concerns about discrepancies in financial figuresrelated to the project presented by both the Ministry and Julius Berger. He directed that all relevant documentation be submitted for review to ensure clarity and accountability regarding public funds.

This strategic move by the Federal Government aims not only at substantial cost savings but also at improving infrastructure quality and safety along one of Nigeria’s key transportation routes.

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