BREAKING: Tinubu Govt Revokes Julius Berger Contract

President Bola Tinubu’s government has officially ended the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, Section I (Abuja-Kaduna) with Julius Berger Construction Company.

This development was confirmed in a statement by Mohammed Ahmed, the Director of Press at the Federal Ministry of Works, on Monday.

According to the statement, this decision was made after Berger’s management failed to attend a meeting to finalize the contract amount, which the government had set at ₦740 billion, a figure that the company contested.

Ahmed stated that the decision resulted from several months of discussions that yielded no significant progress during management meetings between the Ministry and Julius Berger.

It is important to remember that the contract for the road was awarded to Julius Berger in 2018, with an initial budget of less than ₦155.7 billion and a completion timeline of 36 months.

However, the cost escalated to over ₦600 billion, and after six years, less than 50 percent of the road has been completed.

Ahmed emphasized that the ministry has engaged in ongoing discussions with the company over the past 13 months in an effort to reach a mutually agreeable resolution regarding the alignment, but these efforts have been unsuccessful.

The statement said: “It is a sad commentary on the Company that rather than accepting the offer, they tinkered with the Bills of Quantities, as well as that of Engineering Measurements and Evaluation via a letter to the Ministry dated 29th October 2024. The company was summoned for a meeting with the Management of the Ministry today, 4th November 2024, but refused to show up, hence the termination of the contract based on effluxion of time and non-performance.”

“Based on non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilise to site, as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger (Nig.) Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna), today, 4th November, 2024.

“Nigerians may wish to know that the contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, which was divided into three (3) Sections was awarded to the company on 20th December 2017 and flagged off by the then Minister of Power, Works and Housing, H: E. Babatunde Raji Fashola at an initial sum of N155.7bn on 18th June 2018.

“Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partially completed and handed over during the twilight of the administration of former President Muhammadu Buhari, GCFR. Since then, it has been one variation and augmentation or the other and finally, the present Minister of Works directed for the redesigning and re-scoping of Section I of the contract.

“The alignment was divided into two, with one phase redesigned to be on continuously reinforced concrete pavement (CRCP), while the remaining with asphaltic pavement. Approval for Section I, Phase 1, for a length of 38 (thirty-eight) kilometres on the concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 (one hundred and twenty-seven) kilometres remained with the substantive contractor. The Phase 1 was flagged off on 17th October 2024 with a 14-month completion period.

“Due to the stalemate of the contract and, most importantly, the desire of His Excellency, President Bola Ahmed Tinubu, GCFR, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project, also to alleviate the sufferings of Nigerians plying the road, the Ministry re-scoped it and got the approval of the Federal Executive Council (FEC). The award for the Re-scoping and Downward Review of the Contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna) in favour of Messrs Julius Berger (Nig.) Plc from the sum of ₦797.2bn to ₦740.7bn was granted by FEC on 23rd September 2024 and conveyed to the company on 3rd October 2024.

“As due to the socio-economic importance the road as a vital artery connecting Abuja, the FCT to the North, the Ministry conveyed the approval for a Final Offer on the Abuja – Kaduna Dual Carriageway to the company on 23rd October 2024, stating that it should agree, in writing, to accept the reviewed contract sum of ₦740.7bn within seven (7) days or risk the termination of the said contract.”