The Federal Ministry of Works has taken decisive action by directing Julius Berger Plc, the contractor responsible for rehabilitating the Abuja-Kaduna-Zaria-Kano Dual Carriageway, to evacuate the project site.
This announcement follows the issuance of a 14-day final termination notice on November 4, 2024, effectively dismissing any prospects of further negotiations with the company.
The ministry’s termination of the contract is rooted in a series of infractions by Julius Berger, including non-compliance with revised cost and scope terms, a prolonged stoppage of work, and the contractor’s refusal to remobilise to the site as mandated.
Mohammed Ahmed, Director of Press and Public Relations for the ministry, confirmed these details in a statement issued on the same day, emphasizing that this decision was reached during a management meeting at the ministry’s headquarters.
For over a year, the ministry has been engaged in negotiations with Julius Berger in an attempt to reach an amicable agreement regarding the rehabilitation of the roadway. However, these discussions have failed to yield any substantial progress, leading to the current impasse.
The works ministry had previously threatened to revoke the contract awarded in 2018 during the administration of former President Muhammadu Buhari if the issues were not resolved.
While the Kaduna-Zaria section of the dual carriageway has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna section has seen only 27 percent progress over the past six years.
The Federal Ministry of Works has expressed dissatisfaction with the slow pace of work, and Minister David Umahi has accused Julius Berger of politicizing the project to tarnish the current administration’s reputation.
In a recent development, it was revealed that negotiations had continued without resolution, culminating in the absence of Julius Berger representatives at a scheduled meeting on the day of the termination notice.
In the statement regarding the termination, the ministry outlined the timeline of the contract, which was initially awarded to Julius Berger on December 20, 2017, with a value of N155.75 billion, and flagged off by former Minister of Power, Works, and Housing, Babatunde Fashola, on June 18, 2018.
Over the years, the project has faced numerous variations and augmentations, leading to frustration on the part of the government. The ministry had previously directed a redesign and re-scope of the Abuja-Kaduna section of the contract.
This redesign effort involved dividing the alignment into two phases, with one phase set to be constructed using continuously reinforced concrete pavement, while the remaining section would utilize asphaltic pavement.
The re-scoping process resulted in the approval of a new contract, allowing for the completion of 38 kilometers of the road using concrete pavement by Messrs Dangote Industries (Nig.) Ltd, while the substantive contractor would retain the remaining 127 kilometers. This phase was flagged off on October 17, 2024, with a completion period of 14 months.
Despite the efforts to rescope the project, the ministry noted that the contractor did not agree to the revised terms. The stalemate ultimately necessitated the decision to terminate the contract, aligning with President Bola Tinubu’s Renewed Hope Agenda, which aims to enhance infrastructure development and alleviate the suffering of Nigerians who rely on the road.
The Federal Executive Council (FEC) had approved a downward review of the contract for the rehabilitation project on September 23, 2024, reducing the contract amount from N797.26 billion to N740.79 billion. This approval was communicated to Julius Berger on October 3, 2024.
In light of this recent termination, Minister David Umahi has now revoked 11 contracts in a span of 16 months, reflecting the government’s commitment to holding contractors accountable for their performance on public infrastructure projects.
The termination of the Abuja-Kaduna contract underscores the ongoing challenges in Nigeria’s infrastructure development landscape and the pressing need for effective management and execution of critical road projects.
As the ministry moves forward, it remains to be seen how the government will approach the rehabilitation of the Abuja-Kaduna section in the wake of this decision.
With significant progress still needed on the dual carriageway, the ministry’s actions signal a renewed focus on delivering essential infrastructure improvements for the benefit of the Nigerian people.
