The Federal Government has officially terminated Julius Berger’s contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, citing prolonged delays and cost disagreements as the reasons.
This contract, particularly for Section I (Abuja-Kaduna), had been under review for months due to escalating costs and slow progress. According to a statement from Mohammed Ahmed, Director of Press for the Federal Ministry of Works, Julius Berger was informed of a new contract sum of N740 billion, which the company reportedly rejected.
In his statement, Ahmed expressed the ministry’s disappointment over the company’s handling of the project. “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,” he stated. The company had been summoned for a meeting on November 4, 2024, to discuss the new contract terms but failed to attend.
The government had already issued a 14-day notice of termination to Julius Berger, stating non-compliance with the reviewed cost, scope, and terms, alongside their failure to resume work at the project site. The notice followed months of unsuccessful attempts to resolve the contract terms.
The original contract for the Abuja-Kaduna-Zaria-Kano road was awarded to Julius Berger in 2018. Initially, it was expected to cost N155.7 billion and had a planned completion time of 36 months. However, the project costs surged to over N600 billion, and six years later, less than half of the road construction was completed.
Ahmed revealed that the Ministry had engaged with Julius Berger over the last 13 months in an effort to reach an agreeable position, yet these discussions failed to produce meaningful progress. The Ministry ultimately re-scoped the project due to the significant delays and the importance of the highway to Nigeria’s transportation network.
“The contract for the rehabilitation of this critical artery was initially awarded in 2017, with former Minister Babatunde Raji Fashola officiating the launch at N155.7 billion,” Ahmed explained. The project was split into three sections, with Sections II and III partially completed and handed over before the end of former President Muhammadu Buhari’s administration.
But for Section I, which remains the most challenging segment, the project underwent redesigns. Ahmed detailed that the Ministry divided this segment, assigning one part to continuously reinforced concrete pavement (CRCP) and the rest to asphalt. Messrs Dangote Industries was awarded Phase 1 of this section, which covers 38 kilometers, while the remaining 127 kilometers stayed with Julius Berger. This arrangement was part of an effort to speed up completion and address recurring delays.
In October 2024, the Ministry officially launched Phase 1 of the redesigned project, targeting a 14-month completion period. Ahmed highlighted that the government’s motivation stems from President Bola Tinubu’s “Renewed Hope Agenda” initiative, which aims to complete infrastructure projects to reduce citizens’ burdens.
After receiving approval from the Federal Executive Council (FEC) for a downward review of the project cost from N797.2 billion to N740.7 billion, the Ministry communicated the final offer to Julius Berger. The construction company was given seven days from October 23, 2024, to accept the new sum in writing or face contract termination.
With no agreement reached, the Ministry decided to revoke the contract, putting an end to nearly six years of negotiations and disputes. Ahmed underscored the significance of the Abuja-Kaduna-Zaria-Kano road as a vital economic link between Abuja and the North, explaining that the Ministry had exhausted all means to get the project back on track.
For road users and stakeholders, this development marks a critical turn in the long and turbulent history of this project. A new contractor will likely be brought in to complete the unfinished segments of the highway, which has seen repeated redesigns and budget hikes since its inception.
As Ahmed concluded, “Nigerians may wish to know that the project has seen one variation and augmentation after another,” reflecting the difficulties in bringing this major infrastructure to completion.
