1 month ago
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The Minister of Works, David Umahi, has given Julius Berger a final seven-day ultimatum to accept the Federal Government’s offer of N740.79bn for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road or risk termination of the contract.
Umahi, expressing frustration at the prolonged negotiations, insisted the project must be resolved within the next seven days.
The ultimatum was issued during a courtesy visit to the Minister by the new Managing Director of Julius Berger Plc, Dr Pier Lubasch, accompanied by the outgoing Managing Director, Dr Lars Richter, at the Ministry Headquarters in Abuja.
A statement signed by the Special Adviser (Media) to the Honourable Minister of Works, Orji Uchenna, on Wednesday, noted that the visit was to introduce the new executive officer to the Minister.
This latest development follows Umahi’s earlier threat to revoke the contract, initially awarded to Julius Berger in 2018 under former President Muhammadu Buhari’s administration.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is near completion, the Abuja-Kaduna segment has only reached 27% progress in six years.
At an event last week, Umahi accused Julius Berger of politicising the project to tarnish the current administration’s image.
During the meeting, Umahi voiced concern over the delay in mobilising to the site, despite the Federal Executive Council having approved the funds.
He stressed that the delay is causing significant hardship for road users and reflects poorly on the government.
He remarked, “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 N710bn to N740bn due to these delays, and if this continues, it will become a problem for the Ministry of Works.”
Umahi expressed disappointment that Julius Berger, a company that has long benefited from government support, is not being realistic with its contract pricing, especially given the nation’s current economic challenges.
He urged the contractor to accept or reject the revised contract sum within seven days, warning that the contract would be revoked if they failed to comply. He added that the government would not allow itself to be held hostage by contractors demanding unrealistic pricing and additional costs.
“This offer is not subject to any conditions,” he said. “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.”
“Several Berger projects have already been terminated due to site abandonment, and we must act because Nigerians are suffering and blaming the President. We cannot let this continue.”
The former Ebonyi Governor stressed that construction firms working with the Ministry must be prepared to offer value for money and realistic pricing to support the road infrastructure revolution essential for Nigeria’s economic transformation.
In response, the new Managing Director of Julius Berger promised to revert on the issues raised and hoped for a swift resolution to avoid further delays.
The outgoing Managing Director clarified that the primary purpose of the visit was to introduce the new Managing Director to the Minister.
