The Nigerian Federal Government has terminated the ₦740 billion contract with Julius Berger for the Abuja-Kaduna dual carriageway due to non-performance. Minister of Works David Umahi cited prolonged delays and unmet obligations as key reasons. The decision follows months of failed negotiations and aims to improve infrastructure in the region.
The Federal Government of Nigeria has officially terminated the ₦740 billion contract with Julius Berger (Nig.) Plc for the rehabilitation of the Abuja-Kaduna dual carriageway due to persistent non-performance issues. This decision follows months of unsuccessful negotiations aimed at resolving the delays in completing the critical 82-kilometer road section.
In a statement issued on November 4, 2024, the Director of Press and Public Relations at the Federal Ministry of Works, Mohammed Ahmed, explained that the termination came after the expiration of a 14-day notice sent to Julius Berger. The contract, initially awarded in December 2017, had seen only 27 percent completion over six years, with the Kaduna-Zaria and Zaria-Kano sections nearing completion while the Abuja-Kaduna section lagged significantly behind.
Minister of Works David Umahi had previously expressed frustration over the company's slow mobilization to the site, emphasizing the hardships faced by road users due to the delay. Despite the government offering a revised sum of ₦740.79 billion to expedite the completion, discussions failed to yield any positive results, prompting the government to take decisive action.
Umahi accused Julius Berger of politicizing the project to undermine the current administration’s efforts. He highlighted the urgent need for infrastructure development in the region, which is vital for connecting the Federal Capital Territory to northern Nigeria. With this termination, the government aims to pursue alternative solutions to alleviate the transportation challenges faced by the public.
