The Federal Government of Nigeria and construction giant Julius Berger Plc are in a fierce standoff over the N740.7 billion Abuja-Kaduna Road project.
This conflict revolves around the 82-kilometer Section II of the road, a crucial infrastructure development for the country.
The Minister of Works, Engr. Nweze David Umahi, issued a strong ultimatum to Julius Berger on Wednesday.
He demanded that the company accept the revised contract sum of ₦740,797,204,713.25 within seven days or forfeit the contract entirely.
This warning highlights the increasing urgency surrounding the road project, which has faced significant delays.
Umahi expressed his disappointment regarding Julius Berger’s lack of progress despite the federal government approving funds for the project.
He stated, “The delay in mobilizing to the site is causing untold hardship to the road users.”
The minister emphasized that the government is feeling the negative effects of these delays.
“If Berger is not doing it, then let’s have other people to do the job,” he asserted.
Julius Berger’s continued indecision has been described as a “ping pong game” by Umahi, citing over 20 letters exchanged between the company and the government.
These delays have led to the project’s budget rising from ₦710 billion to ₦740 billion.
“This is a problem for the Ministry of Works,” he lamented.
Umahi criticized Julius Berger for not being realistic with contract pricing, especially given Nigeria’s current economic challenges.
He urged the company to accept or reject the government’s offer, stating, “We cannot be held to ransom by unrealistic pricing.”
The minister made it clear that this offer is non-negotiable and was made after 14 months of discussions.
“I have to sound this way because there must be an end to negotiation,” he said.
He continued, “If anybody says there shouldn’t be an end to negotiation, then that person is not a business person.”
The urgency of this situation is underscored by the public’s frustration over the state of the roads.
Nigerians have expressed their grievances, with many feeling that the government’s efforts are falling short.
Umahi stressed the need for construction companies to offer value for money and realistic pricing to facilitate road infrastructure development.
“Already, a number of Berger projects have been terminated because the site has been abandoned,” he noted.
The minister reiterated that the ongoing hardships faced by Nigerians due to poor road conditions cannot continue.
“Nigerians are suffering. Nigerians are crying, and they are insulting the President,” he said.
He urged Julius Berger to respond quickly to the government’s ultimatum so that work on the project can finally commence.
In response, the new Managing Director of Julius Berger, Dr. Pier Lubasch, promised to address the issues raised by the minister.
He expressed hope that a consensus would be reached soon to avoid further delays.
The outgoing Managing Director, Dr. Lars Richter, clarified that the purpose of their meeting was to introduce the new MD.
This situation highlights the ongoing challenges faced by the Nigerian government in ensuring timely infrastructure development.
The Abuja-Kaduna Road project is vital for economic growth and connectivity between key cities.
The Abuja-Kaduna road is crucial for reducing travel time and improving logistics in Nigeria.
Recent discussions in the National Assembly have also emphasized the need for faster completion of major road projects.
Critics argue that delays like this one contribute to the country’s economic stagnation.
