FG Issues Final Ultimatum To Julius Berger Over Delays On Abuja-Kaduna Road Project
The Federal Government has given Julius Berger a seven-day ultimatum to accept its proposal of N740.79 billion for completing the rehabilitation of the 82-kilometer section II of the Abuja-Kaduna-Zaria-Kano road or face termination of the contract. Minister of Works, David Umahi, announced the ultimatum during a visit by the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, and outgoing Managing Director, Dr. Lars Richter, at the ministry’s headquarters in Abuja.
The contract, which has faced delays since its award in 2018 under former President Muhammadu Buhari, remains incomplete, with the Abuja-Kaduna section having only 27% progress in six years. Although other sections—Kaduna-Zaria and Zaria-Kano—are either completed or near completion, the Abuja-Kaduna stretch remains a concern. Umahi attributed the delays to Julius Berger’s failure to mobilize despite the Federal Executive Council approving funds.
The minister expressed frustration with Julius Berger’s repeated delays, price hikes, and the overall slow progress, accusing the company of playing politics to damage the current administration’s image. The contract price, initially set at N710 billion, has risen to N740 billion due to the ongoing delays.
Umahi emphasized that further delays would not be tolerated and that the government would no longer be held hostage by contractors demanding higher prices without justification. He urged Julius Berger to accept or reject the government’s revised offer within seven days, warning that the contract would be revoked if the company failed to comply. The minister also stressed the need for construction companies to adapt to Nigeria’s economic realities by offering realistic pricing and making sacrifices for the country’s infrastructural development.
In response, Julius Berger’s new managing director, Dr. Lubasch, promised to address the issues and work towards a resolution. The outgoing managing director, Dr. Richter, clarified that the visit’s primary purpose was to introduce the new executive.
