By The Federal Government has canceled the ₦740.7 billion contract with Julius Berger for the rehabilitation of the Abuja-Kaduna-Zaria-Kano road due to unresolved issues.
The Minister of Works, Dave Umahi, announced that the road project would now be constructed using concrete instead of asphalt, a decision he said would save over ₦640 billion for the government.
Speaking before an Ad hoc Committee overseeing the project, Umahi explained that the switch to concrete ensures better quality and reduces costs. He revealed that Julius Berger had initially proposed a cost of ₦1.5 trillion, but by rejecting their offer, the government has significantly cut expenses.
“By my approach, I saved the country ₦640 billion. If we had agreed to their terms, the project would have cost us ₦1.5 trillion. Now, we’re delivering a better road at a much lower cost,” he stated.
Umahi also disclosed that the contract with Julius Berger was terminated due to unethical practices and the company’s failure to meet the agreed terms. He emphasized that the decision is final as the disagreements between the Ministry and the contractor could not be resolved.
Meanwhile, the Chairman of the Ad hoc Committee, Aminu Jaji, has requested all documents related to the project for proper review. Jaji also noted inconsistencies between the figures presented by the Ministry and Julius Berger.
During the meeting, Julius Berger’s representative, Benjamin Bott, claimed the Federal Government owes the company, but further details were not disclosed.
