FG Terminates Julius Berger Contract on Abuja-Kano Road Over Non-Compliance

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The Federal Ministry of Works has issued a 14-day termination notice to Messrs Julius Berger Nigeria Plc for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway.

This action follows the company’s non-compliance with revised costs, scope, and contract terms, as well as its failure to resume work on-site as directed.

According to a statement from Mohammed Ahmed, Director of Press and Public Relations for the Ministry of Works, the decision to issue the termination notice came after numerous attempts to resolve outstanding issues with the company through discussions.

“Several meetings were held to reach an amicable position on the project’s alignment, but no agreement was reached,” Ahmed noted.

Originally awarded to Julius Berger on December 20, 2017, the contract for the Abuja-Kaduna-Zaria-Kano Dual Carriageway was split into three sections, with the initial project value set at N155.748 billion and flagged off on June 18, 2018, by then-Minister of Power, Works, and Housing Babatunde Raji Fashola.

While Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partly completed and handed over under former President Muhammadu Buhari’s administration, the current Minister of Works ordered the redesign and re-scoping of Section I due to ongoing delays and contract adjustments.

The statement highlighted that part of Section I was realigned into two phases, one of which involves a concrete pavement redesign covering 38 kilometers, assigned to Messrs Dangote Industries Ltd, while the remaining 127 kilometers remained with Julius Berger under the original asphaltic pavement design.

“Approval for this redesigned phase was given to Dangote Industries on October 17, 2024, with a completion timeline of 14 months,” the statement read.

“In line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the Ministry obtained the Federal Executive Council’s (FEC) approval to revise the project’s scope and reduce the contract value to N740.797 billion, a revision conveyed to the company on October 3, 2024.”

 

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