The Traffic

"7 Days or Termination: Umahi Puts Julius Berger on Notice Over Abuja-Kaduna Road Delays"

In a high-stakes ultimatum, the Minister of Works, David Umahi, has issued a final seven-day warning to construction giant Julius Berger, demanding that the company accept the Federal Government’s revised offer of N740.79 billion for completing the crucial Abuja-Kaduna-Zaria-Kano road project, or face contract termination.

During a tense meeting at the Ministry's headquarters in Abuja, Umahi expressed frustration over the sluggish progress on the 82km Section II of the project, which has lingered under negotiation for months. The ultimatum came in the presence of Julius Berger's new Managing Director, Dr. Pier Lubasch, and outgoing MD, Dr. Lars Richter, in a courtesy visit meant to introduce the new leadership.

Umahi made it clear that after years of delays, the government would no longer tolerate the standoff, which has contributed to public dissatisfaction and mounting costs. “This project must be resolved within seven days,” he declared, signaling the end of drawn-out negotiations.

The Abuja-Kaduna-Zaria-Kano road project, initially awarded in 2018 under President Muhammadu Buhari’s administration, has seen significant progress on the Kaduna-Zaria and Zaria-Kano sections, but the Abuja-Kaduna stretch has only reached 27% completion in six years. The delays have provoked widespread frustration among road users and cast a shadow on the government's ability to deliver key infrastructure.

The Minister did not hold back in criticizing Julius Berger, accusing the company of politicizing the project and undermining the current administration. He cited the company's failure to mobilize to the site despite the approval of funds by the Federal Executive Council, a situation that has led to escalating costs and public hardship. “If Berger cannot do it, we will find others who can,” Umahi warned, adding that the project's price had already ballooned from N710 billion to N740 billion.

Umahi voiced disappointment over the company's unrealistic pricing in light of Nigeria’s economic challenges. He emphasized that Julius Berger, a company long supported by the government, should offer value for money and align with the nation’s infrastructure needs.

He reiterated that this was a final offer, not open to further negotiation, stating, "If discussions have dragged on for 14 months with no resolution, it’s time to end them." He also pointed out that other Julius Berger projects had already been terminated due to site abandonment, further fueling the government's resolve to take decisive action.

Umahi’s ultimatum is part of a broader strategy to accelerate road infrastructure development, which the former Ebonyi governor has championed as critical to Nigeria’s economic transformation.

In response, Dr. Lubasch, Julius Berger's new MD, acknowledged the issues raised and promised to revert quickly, expressing hope for a swift resolution to avoid further delays. The outgoing MD, Dr. Richter, emphasized that the primary purpose of their visit was to ensure a smooth transition of leadership in the company.

With the clock ticking, all eyes are now on Julius Berger to see if they will comply with Umahi’s terms or face losing one of the nation’s most critical road contracts.

Yakubu Haruna Yakubu