KEY POINTS

• The Nigerian government shifts to asphalt for the Abuja-Kaduna road project, saving N640 billion over concrete.
• Minister Umahi terminated Julius Berger’s contract over delays, cost issues, and ethical concerns.
• Re-awarded contracts will prioritize quality, cost-efficiency, and timely delivery, with improved safety features like solar lighting and CCTV.

The Nigerian Federal Government has announced a shift to asphalt for the Abuja-Kaduna-Zaria-Kano road project, a decision projected to save over N640 billion.

The move comes after terminating the initial contract with Julius Berger Nigeria Plc, citing unethical practices, cost inflation, and delayed project timelines.

Cost Savings and New Approach

Minister of Works, Engr. Dave Umahi, revealed that Julius Berger had demanded N1.5 trillion for the project due to cost variations. By opting for asphalt instead of concrete, the government aims to cut costs significantly and improve the road’s architecture.

“By this approach, we’re saving N640 billion and ensuring a better road structure. Julius Berger’s terms were unreasonable and their performance fell short of expectations,” Umahi stated.

The decision to terminate the contract aligns with the government’s broader strategy to ensure transparency and accountability in infrastructure development.

Julius Berger contract termination

According to the Guardian, the Ministry of Works cited several issues with Julius Berger’s handling of the project, including refusal to meet agreed timelines and conditions. The original contract stipulated a 14-month completion period and strict cost parameters, which the contractor allegedly failed to honor.

Umahi also highlighted operational lapses, including Julius Berger’s failure to address critical potholes that worsened road conditions and exacerbated security risks like kidnappings along the route.

“This project is non-variable unless the exchange rate exceeds N2,000 per dollar. Berger declined to accept these terms, leaving us no choice but to terminate the agreement,” Umahi explained.

Concerns over re-awarding the project

The project will now be open to a competitive bidding process, with Julius Berger eligible to participate. However, lawmakers expressed concerns about potential cost increases resulting from re-awarding the contract.

Committee Chairman Aminu Jaji directed the ministry to provide detailed documentation, including contract agreements, payment certificates and progress reports, to ensure transparency in the re-award process.

“The discrepancies in the figures presented by the ministry and the contractor must be resolved to ensure the best outcome for the country,” Jaji said.

Contractor’s response

Julius Berger attributed delays to government policy changes, including the shift from asphalt to concrete, and challenges such as insecurity. Benjamin Bott, representing the company, noted that insecurity halted work for 11 months after a bomb attack in Kaduna.

Despite these setbacks, the Federal Government is pressing forward with the asphalt alternative, promising faster completion and improved safety measures such as solar lighting and CCTV installations.

The Abuja-Kaduna-Zaria-Kano road project remains a critical infrastructure development for Nigeria, and the Ministry has pledged to ensure timely delivery while addressing concerns over cost and contractor performance.