- Contract Termination: The Federal Ministry of Works has terminated Section 1 (Abuja-Kaduna) of the contract awarded to Julius Berger due to irregularities .
- Reasons for Termination: The termination was due to non-compliance with reviewed cost, scope, and terms, as well as stoppage of work and refusal to remobilize to the site .
- Contract Value: The contract was valued at N740 billion .
- Project Background: The contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual carriageway was initially awarded to Julius Berger in 2017 for N391 billion .
- Completion Status: While Sections II (Kaduna-Zaria) and III (Zaria-Kano) were partially completed, Section I (Abuja-Kaduna) experienced slow progress .
- Government’s Stance: The Minister of Works, David Umahi, emphasized that the government will not increase the contract value beyond N740 billion .
- Alternative Plans: The government plans to re-award the contract to more competent contractors .
The Federal Ministry of Works has terminated Section 1 (Abuja-Kaduna) of the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, previously awarded to Julius Berger . The termination notice, valued at N740 billion, was issued due to non-compliance with reviewed cost, scope, and terms, as well as stoppage of work and refusal to remobilize to the site .
Background of the Project
The contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual carriageway was awarded to Julius Berger on December 20, 2017, with an initial sum of N155.748 billion . Sections II (Kaduna-Zaria) and III (Zaria-Kano) were partially completed and handed over during former President Muhammadu Buhari’s administration .
Reasons for Termination
The Ministry of Works cited several reasons for the termination, including:
- Non-compliance with reviewed cost, scope, and terms
- Stoppage of work and refusal to remobilize to the site
- Refusal to accept the reviewed contract sum of N740,797,204,173.25
- Failure to attend a meeting with the Ministry’s management .
Next Steps
The Ministry has allocated part of the Abuja-Kaduna section to Dangote Industries Nigeria Ltd. for rehabilitation, with a 14-month completion target . The termination aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda for infrastructure development .
