The Federal Government has issued a final ultimatum to construction giant Julius Berger, demanding the company accept a revised N740.79bn contract to complete the rehabilitation of the Abuja-Kaduna-Zaria-Kano road within seven days or face termination of the deal. The 82-kilometre section of the highway, plagued by delays, has become a flashpoint for public frustration.
Minister of Works David Umahi delivered the ultimatum on Wednesday during a meeting with Julius Berger’s incoming Managing Director, Dr Pier Lubasch, and outgoing MD Dr Lars Richter. The meeting at the Ministry of Works headquarters in Abuja was to formally introduce the new executive officer to the minister, but it quickly shifted focus to the stalled project.
The contract, originally awarded in 2018, has progressed at a snail’s pace. While the Kaduna-Zaria section is complete and the Zaria-Kano stretch is nearing conclusion, the vital Abuja-Kaduna portion has seen only 27 per cent completion in six years, much to the chagrin of road users.
Umahi, visibly frustrated, accused Julius Berger of stalling negotiations in a way that damages the current administration’s reputation. “It’s a ping-pong game from Julius Berger,” the minister remarked, noting that the contract cost has ballooned from N710bn to N740bn due to repeated delays.
“Berger has received more than 20 letters from us. If they’re not willing to complete the work, we’ll bring in others who can,” Umahi said. He highlighted that the federal government had approved the necessary funds but the company had failed to mobilise its workforce effectively, compounding the suffering of road users and damaging the government’s image.
The minister’s comments reflect mounting dissatisfaction with the German construction giant, which has long held a dominant position in Nigeria’s infrastructure projects. Umahi questioned the firm’s commitment to realistic pricing, given the country’s economic struggles, and urged Julius Berger to make a decision within seven days or risk losing the contract entirely.
“This offer is final and not open to further negotiation,” Umahi warned. “We’ve been negotiating for 14 months. If you can’t reach an agreement in that time, the negotiation should end.”
Julius Berger’s new managing director, Dr Lubasch, responded cautiously, promising to revert soon with a decision. However, the minister’s ultimatum underscores the government’s impatience with delays in crucial infrastructure projects, which have stirred public outrage and political pressure.
As the deadline looms, the future of this critical project – seen as essential to linking key northern and southern regions – hangs in the balance.