Nigerian Government Revokes Contract from Julius Berger

The Federal Ministry of Works has ordered Julius Berger Plc to vacate the Abuja-Kaduna-Zaria-Kano Dual Carriageway project site following a final termination notice issued to the company. The decision, which ends all further negotiations, was made after the contractor failed to comply with revised project terms and halted work on Section One of the road.

According to the ministry, the contract termination results from Julius Berger’s non-compliance with the updated cost, scope, and terms, as well as its refusal to remobilize to the site. Efforts to reach an agreement had been ongoing for months, but no significant progress was achieved. A statement by the ministry’s Director of Press and Public Relations, Mohammed Ahmed, announced the decision on Monday after a management meeting.

The contract, initially awarded in 2018 under former President Muhammadu Buhari’s administration, covered three sections of the dual carriageway. The Kaduna-Zaria section has been completed, and the Zaria-Kano stretch is nearing completion. However, the Abuja-Kaduna segment has only reached 27% completion in six years, sparking concerns about delays.

Minister of Works, David Umahi, has previously accused Julius Berger of using the project to tarnish the reputation of the current administration. Last month, he hinted at possible termination of the contract unless the company addressed its non-performance. The company’s absence at a scheduled meeting on Monday cemented the ministry’s decision.

The ministry’s statement clarified, “Due to non-compliance with the reviewed cost, scope, and terms, stoppage of work, and refusal to remobilize, the Federal Ministry of Works has issued a 14-day Termination Notice to Julius Berger Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway, Contract No. 6350, Section I (Abuja-Kaduna).”

The ministry noted that the original contract, signed in December 2017 and flagged off by former Minister Babatunde Fashola at N155.75 billion, had undergone several variations. Recently, approval was given to split the alignment, awarding a 38-km concrete phase to Dangote Industries Ltd. The remaining 127 km remained under Julius Berger’s oversight, with a revised completion period flagged off on October 17, 2024.

The Federal Executive Council had approved a re-scoping and downward review of the project cost from N797.26 billion to N740.79 billion, but Julius Berger reportedly disagreed on the updated terms.

In the last 16 months, Minister Umahi has revoked 11 contracts as he pushes to fulfill President Bola Tinubu’s Renewed Hope Agenda, prioritizing critical infrastructure projects to ease road travel for Nigerians.