Abuja (EPICSTORIAN) — Nigeria’s Federal Ministry of Works has cited Persistent delays and Cost Overruns as the reasons for the termination of the contract of Julius Berger for Section I of the Abuja-Kaduna-Zaria-Kano highway. Awarded in 2017.
The Ministry, headed by the federal minister David Umahi, said given the “non-performance” that led to the termination, this underscores the company’s failure to meet revised conditions despite multiple extensions and budget adjustments.
The Abuja-Kaduna-Zaria-Kano highway is a critical route, serving as a major artery for commuters and goods between Abuja and Nigeria’s northern regions.
Originally projected to be completed under a much lower budget, the project’s cost was adjusted to N740.8 billion in the latest revision approved by the Federal Executive Council.
This revised budget aimed to cover material price increases and address logistical challenges that had slowed progress.
Despite the government’s efforts to work with Julius Berger to ensure compliance with the updated contract terms, the contractor’s continued delays led the Ministry to take firm action.
The Ministry also reported a 13-month effort to negotiate progress, emphasizing that the contractor’s refusal to remobilize and proceed with the project forced the government’s hand.
According to the Ministry, this decision aligns with President Tinubu’s Renewed Hope Agenda, a nationwide initiative prioritizing infrastructure development to enhance regional connectivity and economic growth.
The contract termination marks this one of the decisive steps taken by the federal government to ensure that essential infrastructure projects remain on schedule, enabling a smoother and safer travel experience for Nigerians and supporting economic activities across regions.
“The termination of this contract is a testament to the government’s commitment to delivering critical infrastructure projects efficiently,” the Ministry noted.
“By holding contractors accountable to their commitments, we aim to ensure that Nigerians can rely on timely and quality road improvements.”
The Federal Ministry of Works has pledged to expedite the process of finding a new contractor for Section I of the Abuja-Kaduna road project, aiming to avoid further disruptions.
The government’s goal remains focused on completing the highway to alleviate travel bottlenecks and foster improved connectivity between Abuja and the northern states.
Ministry of Works vows accountability Measures
With these measures, the Ministry reaffirms its stance on enhancing Nigeria’s road networks, a vital component of President Tinubu’s vision for a more accessible and economically integrated nation.
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