The Federal Government has terminated a section of the Abuja-Kaduna highway contract originally awarded to Julius Berger.
According to Daily Trust, this contract was granted in 2018 during the administration of former President Muhammadu Buhari. While the Kaduna-Zaria section has been completed and the Zaria-Kano section is nearing completion, progress on the Abuja-Kaduna section has stalled at just 27 percent over the past six years.
During the inauguration of the highway’s rehabilitation on Thursday, Minister of Works Sen. David Umahi accused Julius Berger of politicizing the project. He revealed that the company initially requested N1.5 trillion for the job, but after review, the Federal Executive Council (FEC) reduced the amount to N740 billion.
“Berger proposed that N1.5 trillion was necessary to complete the entire project. We began negotiations in September of last year, sending weekly correspondence. Ultimately, we informed them that despite their requests, it would still take four years to finish due to traffic congestion and security issues on the road,” Umahi stated.
He explained that they offered the solution of dividing the road project into three segments, which received presidential approval. Although Julius Berger initially agreed to this plan and the proposed rates, the minister accused them of employing delay tactics. Their initial request amounted to N710 billion for both completed and pending work. However, they later demanded an increase to N740 billion, which the FEC approved, only for Julius Berger to request a further hike to N903 billion last week.
“Accepting this new request sets a precedent; other contractors would likely demand similar increases, pushing project costs to around N4 billion per kilometer for asphalt. Our firm stance is that we will not escalate the project cost beyond N740 billion for Julius Berger—the game is over. If they fail to meet their obligations, we will award the contract to others who can deliver the same quality at a lower price. They have turned this project into a political tool, attempting to undermine our administration, and we’ve had enough.”
He added that the dualized road, which spans 375 kilometers (750 kilometers total), will also see an extension of 7.5 kilometers in Kogi and Kano States.
Earlier, the ministry’s Director of Highway Construction, Engr. Bakare, noted that the project scope had been modified and the outstanding sections would be reassigned to Dangote and BUA.
He stated that Dangote will construct 38 kilometers of dual carriageway in section one, with a cost of N145 billion and a 14-month completion timeline.
Moreover, the project, previously funded by the Presidential Infrastructure Development Fund (PIDF), will now be financed through the Tax Credit Scheme.
