The Minister of Works, David Umahi, has issued a seven-day ultimatum to Julius Berger to accept the federal government’s revised contract sum of N740.79 billion for the completion of the 82km Section II of the Abuja-Kaduna-Zaria-Kano road.
This was made known in a statement later signed by the Special Adviser (Media) to the Minister of Works, Orji Uchenna, on Wednesday, adding that the company risks termination of the contract if it does not accept the offer.
The ultimatum was issued during a meeting with Julius Berger’s new Managing Director, Dr. Pier Lubasch, and outgoing Managing Director, Dr. Lars Richter, at the Ministry’s headquarters in Abuja.
Umahi expressed frustration over the delays in mobilizing to the site, despite federal government approval of funds.
The minister emphasized that these delays are causing hardship for road users and damaging the government’s reputation, according to Channels TV.
Julius Berger’s contract pricing has increased from N710 billion to N740 billion due to delays. Umahi warned that further delays would harm the Ministry of Works and urged the contractor to accept or reject the offer within seven days or face contract termination.
The minister stressed that construction companies must prioritize value and realistic pricing to support Nigeria’s road infrastructure revolution, a key agenda of President Bola Tinubu’s administration.
The Abuja-Kaduna-Zaria-Kano road project has faced significant delays, and the federal government is pushing for its completion. Julius Berger’s response to the ultimatum will determine the project’s future.
The Ministry of Works has already terminated some Julius Berger projects due to abandoned sites, citing the need for urgent action to address Nigeria’s infrastructure challenges.
According to the statement, “The Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has for the umpteenth time called on Julius Berger Plc. to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740, 797,204,713.25 (Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350.
“So if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price. We’ve had more than 20 letters from Berger on this. It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.
“This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months. I’m sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.
“Already a number of Berger projects have been terminated because the site has been abandoned. And we needed to do something about it because Nigerians are suffering. Nigerians are crying, and they are insulting the President. We can not allow that to be happening.”
