The Minister of Works, David Umahi, has issued a final seven-day ultimatum to Julius Berger, demanding that the construction company accept the Federal Government’s offer of N740.79 billion to complete the 82km section II of the Abuja-Kaduna-Zaria-Kano road. Failure to comply with the offer could result in the termination of the contract.

David Umahi

The ultimatum was delivered during a courtesy visit to the Minister by Julius Berger Plc’s new Managing Director, Dr. Pier Lubasch, who was accompanied by the outgoing Managing Director, Dr. Lars Richter, at the Ministry Headquarters in Abuja.

“If Berger cannot do it, let’s find others who can and within a timeframe where we can control costs. We’ve received over 20 letters from Berger on this. The price has risen from N710bn to N740bn due to these delays, and if this continues, it will become a problem for the Ministry of Works.”

“This offer is not subject to any conditions” . A businessperson knows that negotiations must eventually conclude.”“If negotiations have dragged on for 14 months with no resolution, it’s time to end the discussion. 

This latest move follows Umahi’s earlier warning to cancel the contract, which was first awarded to Julius Berger in 2018 under the administration of former President Muhammadu Buhari. Although the Kaduna-Zaria section is finished and the Zaria-Kano portion is close to completion, the Abuja-Kaduna stretch has seen just 27% progress over the past six years.

He emphasized that the delay is inflicting considerable hardship on road users and negatively impacts the government’s reputation.

“Several Berger projects have already been terminated due to site abandonment, and we must act because Nigerians are suffering and blaming the President. We cannot let this continue.”

Umahi voiced his disappointment that Julius Berger, a company that has historically benefited from government support, is not being realistic about its contract pricing, particularly in light of the country’s current economic challenges.

In response, the new Managing Director of Julius Berger promised to address the concerns raised and expressed hope for a quick resolution to prevent any further delays.