The Federal Government has terminated the contract with Julius Berger Construction Company for the rehabilitation of Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway. According to a statement by Mohammed Ahmed, Director of Press for the Federal Ministry of Works, the decision was made after Julius Berger failed to attend a meeting to finalize the contract sum, which the government had set at N740 billion—a figure the company declined.
“It is disappointing that, rather than accepting the offer, the company modified the Bills of Quantities and the Engineering Measurements and Evaluation in a letter to the Ministry dated October 29, 2024,” Ahmed stated. “The company was invited for a meeting with the Ministry’s management on November 4, 2024, but failed to attend, resulting in the contract’s termination due to time lapse and non-performance.”
The Ministry cited multiple issues: non-compliance with the revised cost and terms, halting work, and refusal to remobilize as directed. Consequently, a 14-day Notice of Termination has been issued to Julius Berger (Nig.) Plc for Contract No.6350, Section I of the project.
Ahmed noted that the decision followed months of negotiations with Julius Berger without any meaningful progress. The contract, initially awarded in 2018 for less than N155.7 billion with a 36-month completion timeline, saw costs skyrocket to over N600 billion while only about half of the road was completed after six years. Despite 13 months of discussions, no agreeable solution was reached.
The project, awarded to Julius Berger on December 20, 2017, and officially launched on June 18, 2018, by then-Minister of Power, Works, and Housing Babatunde Raji Fashola, was originally budgeted at N155.7 billion and divided into three sections. Sections II (Kaduna–Zaria) and III (Zaria–Kano) were partially completed and handed over near the end of former President Muhammadu Buhari’s administration. However, Section I faced repeated cost revisions and delays, leading the current Minister of Works to order a redesign.
The project was divided into two phases: one for a 38-kilometer stretch using continuously reinforced concrete pavement (CRCP), awarded to Dangote Industries Ltd, and another 127-kilometer stretch assigned to Julius Berger with asphalt pavement. Phase 1 was launched on October 17, 2024, with a 14-month completion target.
Due to the stalemate and in alignment with President Bola Ahmed Tinubu’s “Renewed Hope Agenda” for infrastructure, the Ministry re-scoped the project, securing Federal Executive Council (FEC) approval to reduce the contract value from N797.2 billion to N740.7 billion on September 23, 2024. This offer was conveyed to Julius Berger on October 3, 2024, with a final notice on October 23, 2024, requesting written acceptance of the revised sum within seven days or risk termination.
The road’s significance as a major route connecting Abuja to the North underscores the urgency of completing the project, as emphasized in the government’s infrastructure goals.
