The Federal Ministry of Works has made a significant decision to terminate the contract awarded to Julius Berger Nigeria Plc for the rehabilitation of Section 1 (Abuja,Kaduna) of the Abuja,Kaduna,Zaria,Kano dual carriageway. The contract termination is tied to disagreements over compliance with revised project terms, costs, and scope.
Here’s a breakdown of why the contract was terminated, what led to the decision, and the government’s plans moving forward.
Initially awarded in December 2017, the project was valued at N155.7 billions
Section I Abuja to Kaduna
Section II Kaduna to Zaria
Section III Zaria to Kano
The project was initiated under the administration of former Minister of Power, Works, and Housing, Babatunde Fashola, with an ambitious plan to connect the Federal Capital Territory (FCT) to Kaduna and Kano, easing travel across these key northern states. Sections II and III were partially completed and handed over in the final days of the Buhari administration. However, Section I, covering Abuja to Kaduna, remained incomplete due to escalating costs and evolving project requirements.
Over the years, the scope and budget of the project changed significantly. After several adjustments, the Federal Executive Council (FEC) approved a downward review, setting the new contract sum at N740.8 billion. However, Julius Berger allegedly refused to remobilize and meet the revised contract terms. The Ministry of Works claims the company also adjusted bills of quantities and engineering measurements independently, leading to discrepancies in project details.
Despite ongoing discussions over the past 13 months, the ministry and Julius Berger were unable to come to a mutual agreement on the realigned project scope, ultimately prompting the ministry to issue a termination notice on November 4, 2024.
Following the termination, the Ministry of Works has reassigned the project scope for Section I. In an effort to improve project quality and sustainability, the section was divided into two phases with distinct pavement materials
Phase 1 38 kilometers of continuously reinforced concrete pavement (CRCP), awarded to Dangote Industries Ltd.
Phase 2 The remaining 127 kilometers, which will feature asphalt pavement, remains under the scope of the original contractor.
The use of concrete pavement in Phase 1 marks a shift toward more durable road building materials, often considered more suitable for Nigeria’s heavy vehicular traffic.
In a public statement, Mohammed Ahmed, the Director of Press and Public Relations for the Ministry of Works, clarified that the termination came after months of discussions with Julius Berger that failed to yield any positive outcomes. Ahmed also noted that the decision was finalized after a management meeting in which the ministry’s leadership reviewed the ongoing impasse.
The Ministry’s announcement highlights a need for contractors on critical national projects to adhere to government mandated revisions. The termination is seen as a call for accountability, especially given the high cost of the project and its significance in connecting key Nigerian cities.
The termination of the Julius Berger contract underscores the Federal Government’s commitment to delivering quality infrastructure while managing resources prudently. The revised approach to materials, with concrete pavement allocated to a significant portion of Section I, aims to ensure durability and longevity. This shift also represents a step toward more modernized road construction techniques in Nigeria.
By entrusting part of the project to Dangote Industries Ltd, the government signals a preference for contractors who align with national objectives and exhibit flexibility in accommodating budgetary and structural adjustments.
The Ministry of Works has assured Nigerians that the project will continue, despite the termination of Julius Berger’s contract for Section I. With Dangote Industries now overseeing the 38 kilometer concrete phase, the Federal Government anticipates a renewed push toward project completion.
The Ministry is also exploring partnerships that focus on long term value, encouraging contractors to prioritize compliance, efficiency, and transparency to ensure that infrastructure goals are met without compromising quality.
The termination of Julius Berger’s N740 billion contract is a reminder of the government’s responsibility to ensure that public funds are effectively utilized and that projects of national importance are delivered to the highest standards. As Nigeria continues its infrastructure development journey, prioritizing partnerships that align with the nation’s vision for growth and development will be crucial.
This decision may set a precedent for future contracts, reinforcing the importance of accountability, flexibility, and adherence to revised terms. The Abuja,Kaduna,Zaria,Kano road project remains a key infrastructure venture, and the Federal Government’s commitment to its timely completion reflects a broader push to enhance transportation across Nigeria.