The Minister of Works, David Umahi, has given construction giant Julius Berger a final seven-day ultimatum to either accept the Federal Government’s offer of ₦740.79 billion for the completion of the 82-kilometer section II of the Abuja-Kaduna-Zaria-Kano road, or face contract termination.
Umahi expressed his frustration over the prolonged negotiations and emphasized that the matter must be resolved within the week. This ultimatum was delivered during a meeting with the new Managing Director of Julius Berger, Dr. Pier Lubasch, and outgoing MD, Dr. Lars Richter, at the Ministry’s headquarters in Abuja.
In a statement released by Orji Uchenna, Special Adviser to the Minister on Media, it was highlighted that the visit was primarily to introduce the new executive officer to the Minister. However, it also came on the heels of Umahi’s previous threat to revoke the contract, which was initially awarded to Julius Berger in 2018 under the administration of former President Muhammadu Buhari.
While the Kaduna-Zaria section of the road has been completed and the Zaria-Kano section is nearing its conclusion, the Abuja-Kaduna segment lags far behind, with only 27% progress after six years. Umahi voiced concerns over the delay in mobilizing work crews to the site, despite the Federal Executive Council’s approval of funds for the project.
At a recent event, Umahi accused Julius Berger of using the project as a political tool to damage the image of the current administration. He pointed out that the delays have caused undue hardship for road users and negatively affected the government’s reputation. “If Julius Berger cannot do it, we will find others who can,” he said. He added that the project cost has risen from ₦710 billion to ₦740 billion due to these delays.
The Minister stressed that the company’s reluctance to proceed with the project under the revised terms was especially disappointing, given the nation’s current economic struggles. He urged Julius Berger to accept the offer or risk losing the contract, noting that the government would not be held “hostage” by contractors demanding excessive costs.
“This is not a conditional offer,” Umahi said. “Negotiations have dragged on for 14 months, and it is time for resolution. Nigerians are suffering, and the delay is unacceptable.” He also mentioned that several Julius Berger projects have been terminated due to site abandonment, and the Ministry would not hesitate to take action if the stalemate continued.
In response, the newly appointed Managing Director of Julius Berger pledged to review the issues raised and work towards a quick resolution to avoid further delays. Meanwhile, the outgoing MD clarified that the purpose of the visit was primarily to introduce his successor to the Minister.
