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FG terminates Abuja-Kaduna road contract

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By Usman Oladimeji

Non-performance level of the firm led to the contract termination.

The Federal Government of Nigeria has formally terminated the ₦740 billion contract with Julius Berger Nigeria Plc for the renovation of the Abuja-Kaduna dual carriageway, citing non-performance as the main reason. This decision comes after a seven-day ultimatum issued by Minister of Works David Umahi to the firm to accept the government’s offer to complete the 82-kilometer segment II of the road. Umahi voiced his displeasure with the contractor’s lack of progress, claiming that road users are suffering greatly as a result of the delay, and that the Federal Government is also being adversely affected.

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In a statement, Mohammed Ahmed, the Director of Press and Public Relations at the Federal Ministry of Works, stated that the termination was implemented due to the company failure to follow instructions to remobilize to the site. As per the statement, the Federal Ministry of Works had previously issued a 14-day Notice of Termination due to non-compliance with reviewed cost, scope and terms, stoppage of work, and refusal to remobilize to site. The Abuja-Kaduna section of the road has been delayed despite advancements on other parts, such as the Kaduna-Zaria segment, which has been completed.

Numerous challenges impede the project’s completion.

Initially, the project was awarded to Julius Berger in 2018, with the goal of renovating a key thoroughfare that connects Abuja, the capital of Nigeria, to the northwest. This road is particularly essential for daily commuting, trade, and transit. The contract included detailed plans for extension and repair in order to enhance safety, traffic flow, and the general state of the road infrastructure. Following the contract’s approval, Julius Berger organized resources and started building certain road sections. However, numerous challenges, such as financing shortages, logistical delays and insecurity, caused the project to experience several delays, ultimately impeding its completion.

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Due to frequent attacks and kidnappings, several parts of the route have been designated as unsafe over the years, which has hampered project progress and greatly strained Julius Berger’s teams. At the time of termination, the road was reportedly in various phases of development, with some areas exhibiting observable progress and others remaining in poor condition. According to reports, considerable Construction had been completed along some sections of the road but other sections had largely remained unaltered.

Govt terminated the contract due to patchy development.

Locals and commuters, who had hoped that the repair would make traveling on one of Nigeria’s busiest roads easier, are frustrated with the project’s unfinished state. The Nigerian federal government eventually decided to end the contract due to the patchy development and the constantly rising expenses, deeming the project to be neither timely nor cost-effective. Other sources claim that a combination of high project costs, concerns about the project’s quality and progress rate, and ongoing Security issues in the vicinity of the project site were the main causes of the termination.

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Moreover, termination of the contract has raised awareness regarding Nigeria’s Infrastructure challenges, especially those pertaining to the distribution and administration of public finances. The project cost increase from the initial ₦155 billion budget to ₦740 billion has sparked debate on accountability and project management in public works contracts. Given the urgent safety issues on this route, the government acknowledged Julius Berger’s challenges but stated that the public funds invested in the project must produce measurable, timely benefits. The government is currently exploring alternate approaches to complete the road in the wake of this termination.

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This could entail dividing the project into smaller sections and redistributing them to several contractors in the hopes it will enable more rapid and localized project management. For Julius Berger, this termination is a major setback for the company in what was supposed to be a showcase project and could affect its long-standing relationship with the government and its reputation in Nigeria. Meanwhile, the government’s decision shows a dedication for greater accountability in large projects. Millions of Nigerians who depend on the Abuja-Kaduna road remain optimistic that this crucial project will soon be completed, providing safer and more convenient travel through one of the nation’s most vital transit routes.

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