Nigeria’s Federal Government has issued a final seven-day ultimatum to construction firm Julius Berger, calling on the company to accept its revised proposal of N740.79 billion to complete the rehabilitation of the 82-kilometer section II of the Abuja-Kaduna-Zaria-Kano road. The project has been lingering for years, and if an agreement is not reached, the contract may be terminated.
Nigeria’s Minister of Works, David Umahi, emphasized that the project must be resolved within the next seven days. This ultimatum was given during a courtesy visit by Julius Berger’s new Managing Director, Dr. Pier Lubasch, and the outgoing Managing Director, Dr. Lars Richter, at the Ministry of Works headquarters in Abuja.
The project has been dragging on since it was awarded to Julius Berger in 2018 during former President Muhammadu Buhari’s administration. Despite some progress on the Kaduna-Zaria and Zaria-Kano sections, the Abuja-Kaduna section has recorded a mere 27% progress over six years.
At a recent event, Minister Umahi accused Julius Berger of politicizing the highway project, aiming to make the current administration look bad. Umahi expressed concern that the delay in mobilizing to the site, despite the Federal Executive Council’s approval of funds, is causing significant hardship for road users and reflecting poorly on the government.
“We have had more than 20 letters from Berger on this,” Umahi said, “It is a ping-pong game from Julius Berger. The prices rose from N710 billion to N740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.”
Minister Umahi urged Julius Berger to accept or reject the revised contract sum within seven days or risk contract revocation. He emphasized that the government will not be held hostage by contractors’ demands for unrealistic pricing and additional costs.
“This offer is not subject to any condition,” Umahi said. “If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.”
Umahi emphasized that construction companies collaborating with the Ministry of Works must be prepared to make sacrifices regarding value for money and realistic contract pricing. This is crucial for the nation’s economic transformation, particularly in the context of Nigeria’s current economic challenges.
Responding to the ultimatum, the new Managing Director of Julius Berger, Dr. Pier Lubasch, promised to revert as soon as possible on the issues sought to be addressed and hoped that a consensus would be reached for the project to take off without further delay.
The clock is now ticking, and the fate of the Abuja-Kaduna-Zaria-Kano road project hangs in the balance. Will Julius Berger accept the government’s proposal, or will the contract be terminated, paving the way for a new contractor to take over? Only time will tell.
