The Federal Government, through the Ministry of Works, cancels the N740 billion contract with Julius Berger for the rehabilitation of Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway.
This decision follows the contractor’s non-compliance with the revised cost, scope, and terms of the agreement, along with halting work and refusing to remobilize to the project site.
In a statement, the Ministry explains that the termination results from months of discussions that fail to produce any substantial progress. Despite ongoing talks over the past 13 months, no resolution is reached, prompting the Ministry to take this action.
“The Federal Ministry of Works issues a 14-day Notice of Termination to Julius Berger (Nig.) Plc for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, Contract No.6350, Section I (Abuja-Kaduna),” the statement confirms. The notice is issued on November 4, 2024.
Background to the Termination
In September 2024, the Federal Executive Council (FEC) approves a revised cost of N740.79 billion for the project, following a downward adjustment of the original budget. The project, initially approved in 2017 under former President Muhammadu Buhari’s administration, begins in May 2018 with the goal of improving transportation across Abuja, Niger, Kaduna, and Kano states and facilitating the movement of agricultural produce from the North.
Although former Minister of Works Babatunde Fashola projects the project’s completion by 2023, it remains unfinished by the end of the Buhari administration.
Current Minister of Works, Dave Umahi, reveals in early 2024 that the previous administration leaves behind a debt of N1.5 trillion for ongoing road projects, including the Abuja-Kano reconstruction. In response, the Federal Government allocates additional funding, releasing N17 billion, with plans to release another N33 billion to support the project’s continuation.
