Minister of Works, David Umahi, has issued a final seven-day ultimatum to Julius Berger to accept the Federal Government’s offer of N740.79 billion for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road, or face the termination of the contract.
Expressing frustration over the drawn-out negotiations, Umahi insisted that the project must be settled within the next seven days. The ultimatum came during a courtesy visit from Julius Berger’s new Managing Director, Dr. Pier Lubasch, accompanied by the outgoing Managing Director, Dr. Lars Richter, at the Ministry of Works Headquarters in Abuja.
According to a statement signed by Orji Uchenna, Special Adviser (Media) to the Minister, the visit was intended to introduce the new executive officer to the Minister.
This latest action follows Umahi’s earlier threat to cancel the contract, which was initially awarded to Julius Berger in 2018 under the administration of former President Muhammadu Buhari. While the Kaduna-Zaria section has been completed, and the Zaria-Kano portion is nearing completion, the Abuja-Kaduna stretch has seen only 27% progress in six years.
Last week, Umahi accused Julius Berger of politicizing the project to damage the current administration’s reputation, highlighting the company’s delay in mobilizing to the site despite the Federal Executive Council’s approval of funds.
He stressed that the delay is causing severe inconvenience to road users and reflects negatively on the government. Umahi said, “If Berger cannot do it, let’s find others who can and within a timeframe where we can control costs. 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 contracts, is not offering realistic pricing, especially in light of Nigeria’s economic challenges.
He urged the contractor to decide on the revised contract sum within seven days, warning that the contract would be revoked if they failed to comply. Umahi emphasized that the government would not be held hostage by contractors demanding excessive pricing and additional costs.
“This offer is not subject to any conditions,” Umahi stated. “If negotiations have dragged on for 14 months with no resolution, it’s time to end the discussion. A businessperson knows negotiations must have a conclusion.”
Umahi also noted that several Julius Berger projects had already been terminated due to site abandonment, adding, “We must act because Nigerians are suffering and blaming the President. We cannot let this continue.”