Nigeria’s Federal Government has taken a bold step by terminating Julius Berger’s contract for the Abuja-Kaduna-Zaria-Kano Dual Carriageway rehabilitation project, citing non-compliance with reviewed costs, scope, and terms. This decision comes after 13 months of negotiations between the Ministry of Works and Julius Berger failed to yield significant progress.
The contract, awarded in 2018 during former President Muhammadu Buhari’s administration, has been plagued by delays and cost irregularities. Specifically, the Abuja-Kaduna section has recorded only 27% progress in six years, while the Kaduna-Zaria section is complete and the Zaria-Kano section is almost done.
Works Minister David Umahi has accused Julius Berger of “playing politics” with the project, continuously raising cost estimates and delaying completion. The government has approved a revised budget of N740 billion for the project, but Julius Berger requested an additional increase to N903 billion.
To expedite completion, the government has re-awarded parts of the project to other companies, including Dangote Group and BUA, under the Tax Credit Scheme. This move marks a shift in the government’s approach to large infrastructure projects, prioritizing timely completion and cost efficiency.
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