FG Revokes Julius Berger’s Contract

The Tinubu-led Federal government has revoked a section of the Abuja-Kaduna highway contract that was being handled by construction giant, Julius Berger.

The contract, initially awarded to the company in 2018 during former President Muhammadu Buhari's administration, has faced significant delays in progress.

While the Kaduna-Zaria section of the highway has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna stretch has seen only 27 percent progress over the last six years.

During the inauguration of the highway's rehabilitation on Thursday, October 17, Minister of Works, Senator David Umahi, criticized Julius Berger, accusing the company of "playing politics" with the project. Daily Trust reported he said the company had been slow to complete the work and repeatedly requested increased funds.

“Berger said to do this entire job, it needs N1.5 trillion,” Umahi said. “We started negotiation in September last year writing letters every week. Eventually, we told them that despite the ones they are requesting, it would still take them four years to complete as there have been traffic jams and kidnappings on the road.”

The publication said the minister revealed that the Federal Executive Council (FEC) had reviewed the project cost to N740 billion, but Julius Berger continued to delay, later demanding even more funds. “We presented the option of balkanising the road into three, which the President approved. When we did that, Berger accepted it and the rate. But we did not know they were playing games by continuing to play delay tactics.”

Umahi expressed frustration with the company's approach, saying, “Later, they came back that they wanted an increase to N740bn, we went to FEC and they gave approval, only for them last week to say they need another increase to N903bn.”

The minister rejected this latest demand, explaining that accepting it would set a precedent for other contractors to seek similar increases, potentially pushing the project cost to N4 billion per kilometre. “Our position is that we are not increasing this project for Julius Berger beyond N740bn. The game is over. If they are not doing it, we will give it to those that will do it at the same quality of the coaster road at a cheaper rate,” he said.

Umahi added that the 375km dualised road (750km in total) would see an additional 7.5 kilometres in Kogi and Kano States.

In an earlier statement, the Ministry of Works' Director of Highway Construction, Engineer Bakare, explained that the project had been "de-scoped," with the remaining sections re-awarded to Dangote and BUA. Dangote will handle a 38-kilometre dual carriageway within section one of the highway, at a cost of N145 billion and with a 14-month completion date.

The project, which was initially funded by the Presidential Infrastructure Development Fund (PIDF), will now be financed through the Tax Credit Scheme.