The Minister of Works, David Umahi, has given Julius Berger a seven-day ultimatum to accept the Federal Government's offer of ₦740.79 billion for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano Road. This was announced during a visit to the Minister by Julius Berger's new Managing Director, Dr. Pier Lubasch, and outgoing Managing Director, Dr. Lars Richter, at the Ministry's headquarters in Abuja.
According to a statement from the Minister's Special Adviser on Media, Orji Uchenna, the contract could be terminated if Julius Berger does not accept the offer. The Minister stressed that despite the Federal Executive Council's approval of the funds, delays in mobilizing for the project are causing significant hardship for road users, and the government is bearing the brunt of the situation.
Umahi criticized the company's delay tactics, which have led to the contract price increasing from ₦710 billion to ₦740 billion. He stated that if Julius Berger does not proceed with the project, the Ministry will find another contractor to complete the job within a reasonable budget.
He expressed disappointment that a company like Julius Berger, which has benefited from government contracts over the years, is being unreasonable in its pricing, especially given Nigeria's current economic challenges. The Minister urged the contractor to either accept or reject the reviewed contract amount within seven days, warning that the government would not tolerate being held hostage by inflated pricing.
Umahi emphasized that the offer is final and non-negotiable, stating that negotiations had dragged on for 14 months without resolution, and it was time to move forward. He also reiterated the need for construction companies working with the Ministry to offer realistic pricing and value for money in support of Nigeria's road infrastructure development under President Bola Tinubu's administration.
The new Managing Director of Julius Berger promised to respond soon, hoping for a resolution that would allow the project to commence without further delays. Meanwhile, the outgoing managing director explained that the visit was primarily to introduce his successor to the minister.
