The Federal Government has officially terminated its contract with Julius Berger for the Abuja-Zaria-Kano road project, citing disputes over costs, delays, and alleged non-compliance with agreed terms.
The contract, initially valued at ₦740.8 billion, covered 328.4 kilometers across three sections of the road.
However, the Ministry of Works disclosed that the contractor’s refusal to comply with revised costs, scope, and terms led to the decision.
In a statement issued on Thursday by the Ministry’s Director of Press and Public Relations, Mohammed Ahmed, the termination was described as a necessary step after months of unresolved disputes and halted progress.
The government had issued a 14-day termination notice to Julius Berger on November 4, alleging non-compliance and refusal to resume work on the Abuja-Kaduna-Zaria-Kano dual carriageway.
Despite this ultimatum, the contractor reportedly failed to remobilize.
In a letter addressed to the Managing Director of Julius Berger, dated November 21, and signed by the Director of Legal Services, C.O. Assam, the Ministry outlined the reasons for the termination.
The letter stated “An independent consultant, Yolas Consultants, reviewed the project and recommended the contract sum at ₦710.8 billion. Despite this, the Ministry approved an upward review to ₦740.8 billion to accommodate claims of increased construction costs. However, the contractor rejected the terms, opting instead to propose reductions in quantities while increasing unit rates, which was deemed unacceptable.”
The Ministry accused Julius Berger of employing “delay tactics” and unilaterally seeking to modify project items already approved by the Federal Executive Council.
The statement further alleged that the contractor’s actions, including claims of astronomical increases in material costs, undermined the progress of the project.
Invoking Clause 63 of the Standard Condition of Contract for Road Works, the Ministry declared its intention to take over the project site immediately.
“The Engineers’ representative will conduct a joint measurement of completed works in preparation for the site’s takeover,” the statement noted.
The government emphasized that the FEC had approved a revised project timeline of 14 months for the completion of the outstanding works, which include flexible pavement in Sections I (127KM), II (73.4KM), and III (128KM).
The Ministry’s letter reiterated “Despite the consultant’s recommended contract sum of ₦710.8 billion, the Honourable Minister of Works graciously granted an upward review to ₦740.8 billion. This decision was based on the FEC’s approval.
“However, Julius Berger’s actions and subsequent refusal to comply with these revised terms necessitated the termination.”
The Federal Government has assured Nigerians that efforts are underway to identify a new contractor capable of completing the critical infrastructure project within the stipulated time frame.
The termination marks a significant development in Nigeria’s ongoing effort to address infrastructure challenges and ensure accountability in project execution.
