The Federal Government of Nigeria has terminated the contract for Section 1 of the Abuja-Kaduna-Zaria-Kano dual carriageway project valued at approximately N740 billion being handled by Julius Berger Nigeria Plc.
The Ministry of Works and Housing cited the company’s failure to comply with revised project costs, scope, and terms, along with a halt in work and refusal to remobilize the site despite multiple directives.
The Director, Press and Public Relations in the ministry, Mohammed Ahmed, said the decision follows months of unresolved discussions during management meetings, with no significant progress made.
The ministry explained that over the past 13 months, it had engaged in continuous discussions with Julius Berger Nigeria Plc, aiming to reach a mutually agreeable resolution on the project alignment.
Despite these efforts, no progress was made, prompting the government to take the decision to terminate the contract.
“Nigerians may wish to know that the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, which was divided into three sections was awarded to the company on 20th December 2017 and flagged off by the then Minister of Power, Works and Housing, Babatunde Fashola at an initial sum of N155.7 billion on June 18, 2018.
“Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partially completed and handed over during the twilight of the administration of former President Muhammadu Buhari. Since then it has been one variation and augmentation or the other.
“Finally, the present Minister of Works directed the redesigning and re-scoping of section I of the contract. The alignment was divided into two with one phase redesigned to be on Continuously Reinforced Concrete Pavement (CRCP), while the remaining is with asphaltic pavement.
“Approval for the Section I, Phase 1 for a length of 38 kilometres on concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 kilometres remained with the substantive contractor. Phase 1 was flagged off on October 17, 2024, with a 14-month completion period.
“Due to the stalemate of the contract and, most importantly, the desire of President Bola Tinubu, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project, also to alleviate the sufferings of Nigerians plying the road, the ministry re-scoped it and got the approval of the Federal Executive Council (FEC),” the statement said.
The FEC approved a re-scoping and downward revision of the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, reducing the original contract sum from N797.2 billion to N740.7 billion.
This decision was made on September 23, 2024, and communicated to Julius Berger Nigeria Plc on October 3, 2024. Recognizing the critical socio-economic significance of the road as a key link between Abuja and the northern region, the ministry issued a final offer to the company on October 23, 2024.
It stated Julius Berger was given seven days to accept the revised contract sum of N740.7 billion in writing, with a warning that failure to do so would result in the termination of the contract.
“It is a sad commentary on the company that rather than accepting the offer, they tinkered with the bills of quantities, as well as that of engineering measurements and evaluation via a letter to the ministry dated 29, October 2024.
“The company was summoned for a meeting with the management of the ministry, today (Monday) November 4, 2024, but refused to show up, hence the (planned) termination of the contract based on effluxion of time and non-performance,” the ministry stated.
