Federal Government Issues Julius Berger Seven-Day Ultimatum to accept N740.8 Billion Abuja-Kano Road Contract

The Federal Government has given Julius Berger Plc a seven-day deadline to agree to the revised N740.8 billion contract for the rehabilitation of the 82-kilometer Abuja-Kaduna-Zaria-Kano road or risk termination of the agreement.

This ultimatum was issued by the Minister of Works, Senator Engr. David Umahi, during a meeting with the company's new Managing Director, Dr. Pier Lubasch, as stated in an official release from the ministry on Wednesday.

Umahi raised concerns about the delays caused by the company, noting that they have not only worsened the challenges faced by road users but have also driven up the project cost from N710 billion to N740 billion. He cautioned that the government may consider alternative contractors to ensure the project is completed on time and within budget.

"The Honourable Minister of Works, His Excellency, Senator Engr. David Umahi, CON, has once again called on Julius Berger Plc to demonstrate corporate responsibility by accepting the government-approved revised contract sum of ₦740,797,204,713.25 for completing the 82-kilometer section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350," the statement read.

The release further mentioned Umahi’s disappointment that, despite years of government patronage, Julius Berger’s pricing remains unrealistic, especially given Nigeria’s current economic difficulties. The minister urged the company to either accept or reject the revised contract sum within seven days or face contract termination, as the government will not tolerate unreasonable pricing and cost increases by contractors.

Additionally, the statement highlighted Umahi's frustration over the drawn-out negotiations with the company, pointing out that the delays not only increase costs but also hinder the government’s goal of delivering essential infrastructure to the public.