The Federal Government has directed Julius Berger, the contractor responsible for Section One of the Abuja-Kaduna-Zaria-Kano Dual Carriageway rehabilitation, to vacate the project site following a 14-day final termination notice. The Ministry of Works cited non-compliance with revised cost, scope, and terms, alongside prolonged delays and failure to remobilize, as grounds for the decision.
This action concludes months of negotiations aimed at progressing the project, which commenced in 2018 under former President Muhammadu Buhari. Despite completing the Kaduna-Zaria and Zaria-Kano sections, Julius Berger’s work on the Abuja-Kaduna stretch has lagged, achieving only 27% progress in six years. Minister of Works David Umahi had recently accused the company of “playing politics” with the project to undermine the current administration.
In a statement issued on Monday by the Director of Press and Public Relations, Mohammed Ahmed, the Ministry noted that efforts to resolve the stalemate had been exhausted. “Based on non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilize to site, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway,” the statement read.
Background and Contract Adjustments
The contract for the highway project, originally awarded in December 2017, was valued at N155.75 billion. However, ongoing cost adjustments and scope modifications have raised its cost significantly over the years. In a bid to expedite progress, the Ministry recently re-scoped Section One of the project. The Federal Executive Council (FEC) approved a redesign that included continuously reinforced concrete pavement for a 38-kilometer phase, awarded to Dangote Industries, with the remaining 127 kilometers retained by Julius Berger. This redesigned phase was launched on October 17, 2024, with a 14-month completion timeframe.
FEC further authorized a downward revision of Julius Berger’s contract from N797.26 billion to N740.79 billion. The Ministry conveyed this revised offer on October 23, 2024, requiring Julius Berger to formally accept within seven days. However, instead of agreeing, the company responded with proposed adjustments to project bills and engineering evaluations on October 29.
Contract Termination and Future Plans
Julius Berger’s absence from a scheduled meeting with the Ministry on November 4, 2024, ultimately led to the contract’s termination. Ahmed remarked that the decision aligns with President Bola Tinubu’s commitment to infrastructure improvement under the Renewed Hope Agenda, particularly for projects with significant socio-economic impact, like the Abuja-Kaduna highway.
This termination marks the 11th contract revoked by Minister Umahi in the past 16 months. The Ministry has yet to announce the next steps for Section One of the Abuja-Kaduna project, though continued efforts are expected to ensure the timely completion of this essential transportation route.
