The Federal Government has claimed it will save approximately N640 billion following the termination of the contract for the construction of the Abuja-Kaduna-Zaria-Kano road with Julius Berger Nigeria Limited. Minister of Works, Engr. Dave Umahi, made this announcement during his testimony before the House of Representatives Adhoc Committee on December 14, 2024. Umahi explained that the decision to revoke the contract was based on Julius Berger’s failure to meet contract conditions, including delays and significant cost escalations.
In his statement, Umahi emphasized that the original road contract, valued at N1.5 trillion, would have resulted in excessive financial burden for the country. He explained that the new approach would involve re-awarding the contract for the construction of a concrete road, which he said would cost significantly less and deliver a higher-quality product within a shorter timeframe.
“The termination of the contract has saved the country over N640 billion from Julius Berger’s revised demand of N1.5 trillion,” Umahi told the committee. “By re-awarding the contract for a concrete road, we are not only saving a substantial amount of money, but we are also ensuring that the road is completed faster and with better quality,” he added.
The Abuja-Kaduna-Zaria-Kano road project, which is a major transportation route in Nigeria, has been under construction for over seven years. Umahi expressed dissatisfaction with the progress made during this period, citing poor performance by Julius Berger in fulfilling its contractual obligations.
Umahi’s revelation about the potential savings comes after months of negotiations between the Ministry of Works and Julius Berger. The contractor’s original proposal for the project had included significant variations in costs, which Umahi claimed were unjustified and far beyond the scope of the initial agreement. The contract’s estimated cost had escalated to N1.5 trillion due to what the Ministry described as “unreasonable variations.”
“We had cases of kidnappings on the road due to the poor condition of the road. We begged them to fix the potholes, but they refused,” Umahi said. The road, which spans several northern states, has faced serious safety and infrastructure issues. Umahi noted that delays in fixing basic road maintenance issues, such as potholes, had led to dangerous conditions for motorists and travelers, exacerbating the country’s security challenges.
“The contract termination was within our rights as an executive body,” Umahi explained. He noted that the Ministry had adhered to due process in canceling the contract. “We had negotiated with Berger for 14 months. They refused to meet the conditions we set for the completion of the project,” Umahi stated, further stressing that the decision to terminate the contract was made after all options were exhausted.
Umahi also defended the decision to switch the road construction material from asphalt to concrete, asserting that concrete would be more cost-effective and durable in the long run. He added that the new design would incorporate modern features, including solar-powered lighting and CCTV surveillance, to improve safety along the route.
“It’s cheaper to use concrete, and we’re adding features like solar lights and CCTV to improve security,” Umahi said, highlighting the modern, sustainable approach his ministry aims to take. He also argued that the use of concrete would ensure a longer lifespan for the road, reducing the need for costly repairs in the future.
Umahi’s decision to prioritize concrete over asphalt has stirred some debate, with critics questioning the practicality of such a drastic change in the middle of the project. However, the Minister remained firm, asserting that the decision was backed by technical studies and expert consultations. “It’s my responsibility to determine the materials used for the road,” Umahi stated. “When you compare the costs, we are in a safe haven.”
The House of Representatives Adhoc Committee, chaired by Rep. Aminu Sani Jaji, expressed concerns about discrepancies in the figures presented by the Ministry and Julius Berger regarding the project. According to Jaji, the Committee observed inconsistencies in the financial records submitted by both parties, prompting the need for further investigation.
“We have noticed discrepancies in the project’s financials,” Jaji said. “The Ministry must provide all relevant documents to substantiate their claims and ensure full transparency in this matter.”
In response, Umahi assured the Committee that the Ministry would provide all necessary documentation for review. He also emphasized that the contract would be re-awarded through a competitive bidding process, allowing other contractors, including Julius Berger, to submit proposals for the project. “It would not be unethical to allow Berger to bid again. The contract will be open to all interested parties,” Umahi affirmed.
