The Minister of Works, David Umahi, has given Julius Berger a firm seven-day ultimatum to accept the Federal Government’s revised offer of N740.79 billion for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road, warning that failure to comply could lead to the termination of the contract.
During a courtesy visit from the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, along with outgoing Managing Director Dr. Lars Richter, Umahi expressed frustration over the protracted negotiations, insisting that the matter must be resolved within the week.
This ultimatum follows Umahi’s previous warning to revoke the contract, initially awarded to Julius Berger in 2018 during former President Muhammadu Buhari’s administration.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is nearing completion, progress on the Abuja-Kaduna segment has stagnated at just 27% over six years.
At an event last week, Umahi accused Julius Berger of politicizing the project to undermine the current administration’s reputation.
He voiced concerns about the delay in mobilizing resources to the site, despite the Federal Executive Council approving the necessary funds.
He noted, “The delay is causing significant hardship for road users and reflects poorly on the government.”
Umahi further stated, “If Berger cannot do it, let’s find others who can and within a timeframe where we can control costs.
We’ve received over 20 letters from Berger on this. The price has risen from N710 billion to N740 billion due to these delays, and if this continues, it will become a problem for the Ministry of Works.”
Expressing disappointment in Julius Berger, a firm that has historically benefitted from government support, Umahi urged the contractor to evaluate their pricing in light of the current economic challenges.
He emphasized, “This offer is not subject to any conditions. If negotiations have dragged on for 14 months with no resolution, it’s time to end the discussion. A businessperson knows that negotiations must eventually conclude.”
Umahi highlighted that several of Julius Berger’s projects have already been terminated due to site abandonment, stressing the need for urgent action as Nigerians are increasingly frustrated and holding the government accountable. “We cannot let this continue,” he stated.
The former Governor of Ebonyi emphasized that construction firms collaborating with the Ministry must provide value for money and realistic pricing to support the road infrastructure revolution essential for Nigeria’s economic transformation.
In response, Dr. Pier Lubasch promised to address the issues raised and expressed hope for a swift resolution to avoid further delays. Dr. Lars Richter clarified that the primary purpose of their visit was to introduce Lubasch to the Minister.
