FG issues ultimatum to Julius Berger on N740bn road project

The Federal Government has given construction giant Julius Berger a final seven-day ultimatum to accept its proposal of N740.79 billion for the completion of the 82km Section II of the Abuja-Kaduna-Zaria-Kano road or face contract termination.

Minister of Works, David Umahi, issued the ultimatum during a meeting with the newly appointed Managing Director of Julius Berger Plc, Dr. Pier Lubasch, and outgoing Managing Director, Dr. Lars Richter, at the ministry’s headquarters in Abuja.

The meeting, according to a statement by the minister’s Special Adviser on Media, Orji Uchenna, was aimed at introducing the new executive to the minister.

The ultimatum follows long-standing negotiations over the project, which was awarded in 2018 but has seen significant delays. While the Kaduna-Zaria section is complete and the Zaria-Kano section nearing completion, the Abuja-Kaduna section has only achieved 27% progress over six years.

Umahi expressed frustration over the slow pace of work, accusing Julius Berger of “playing politics” to make the current administration appear ineffective. He emphasized that the prolonged delays have not only escalated costs—from N710 billion to N740 billion—but also caused undue hardship to road users and damaged the government’s reputation.

“If Berger is not doing it, then let’s have others do the job,” Umahi stated, making it clear that the ministry would no longer tolerate delays or price hikes. He added that the government will not be held “hostage” by contractors demanding inflated prices, urging the company to either accept the revised contract sum or risk losing the contract.

The minister also expressed disappointment that a company like Julius Berger, which has long benefited from government contracts, was not aligning its pricing with Nigeria’s economic realities. “There must be an end to negotiation,” Umahi remarked, criticizing the 14-month delay in resolving the matter.

Umahi warned that further delays would lead to contract termination, noting that several other projects awarded to Julius Berger had already been terminated due to site abandonment. He called on contractors working with the Ministry of Works to adjust their pricing strategies to reflect the country’s economic challenges and prioritize value for money.

In response, Dr. Lubasch, the new managing director of Julius Berger, promised to address the issues and provide feedback as soon as possible, hoping to reach an agreement to avoid further delays.

The ultimatum marks the latest in a series of efforts by the Federal Government to resolve the long-standing delays and bring relief to commuters affected by the incomplete road project.