- The Federal Government announced it will save over ₦640 billion by terminating Julius Berger’s contract for the Abuja-Kaduna-Zaria-Kano road project
- Minister Dave Umahi revealed plans to re-award the project for concrete construction, aiming for reduced costs and improved road quality
The Federal Government has announced that it will save over ₦640 billion by terminating Julius Berger’s contract for the Abuja-Kaduna-Zaria-Kano road project.
Minister of Works, Engr. Dave Umahi, disclosed this while addressing the House of Representatives Adhoc Committee. The contract, originally valued at ₦1.5 trillion, was revoked after the contractor reportedly failed to meet agreed terms.
Umahi revealed plans to re-award the project for concrete road construction, which he said would reduce costs and deliver better quality. “By this decision, we are saving over ₦640 billion and improving the road’s design and durability,” he stated.
The Minister expressed dissatisfaction with the project’s management over the past seven years. He accused Julius Berger of rejecting key conditions, including a 14-month completion deadline and restrictions on cost variations unless exchange rates exceeded ₦2,000 per dollar.
“They refused to fix potholes despite pleas, leaving sections of the road disrepair. This led to security issues like kidnappings,” Umahi explained.
He defended the contract’s termination, emphasizing that it followed due process and was within his executive rights.
Umahi also highlighted the benefits of concrete roads, calling them a cheaper and more durable alternative.
He added that the new project design includes solar lighting and CCTV installations to enhance road safety.
While the contract will be open for public bidding, Umahi noted that Julius Berger could still participate if it meets the requirements.
The Committee Chairman, Rep. Aminu Sani Jaji, raised concerns about discrepancies in the project figures provided by the Ministry and Julius Berger. He directed the Ministry to submit all relevant documents for further review.
The new project is expected to address long-standing issues with the road and improve infrastructure for commuters in the region.