FG threatens to revoke another Julius Berger contract

The Federal Government has given Julius Berger a seven-day ultimatum to accept its N740.79 billion offer for the completion of a section of the Abuja-Kano Highway or risk termination of the contract. Addressing journalists after the Federal Executive Council meeting on Wednesday, Minister of Works, Senator David Umahi, who insisted that the project must be […]

The Federal Government has given Julius Berger a seven-day ultimatum to accept its N740.79 billion offer for the completion of a section of the Abuja-Kano Highway or risk termination of the contract.

Addressing journalists after the Federal Executive Council meeting on Wednesday, Minister of Works, Senator David Umahi, who insisted that the project must be resolved within the next seven days, stated that “we have not had it so good with Berger because we’ve been negotiating with them since, September 2023, but yesterday we said this negotiation must come to a stop.

“We are giving them seven days if, after seven days, they don’t accept our offer, which is the highest so far in the country, we have no any other option than to issue them 14 days termination notice in accordance with the contract laws.”

Umahi also said, FEC announced that the Shagamu-Benin road is undergoing a critical rehabilitation, while procurement processes are being finalized for its full reconstruction using reinforced concrete pavement.

He continued that the Abuja-Kano road, previously slated for a tax credit arrangement, will now be procured without such a provision, with the 162-kilometer Berger section already approved for ₦740 billion.

He said works on the Oyo-Ogbomosho road, a project stalled for 18 years, will resume, and the Makurdi-Katsina-Ala road will undergo significant repairs.

According to him, FEC also tackled the inherited debt profile of ₦1.6 trillion tied to 2,604 projects, with a total contract value of ₦13 trillion.

To manage the backlog, he said the Ministry of Works has initiated a phased approach to project completion based on available funding.