The Federal Government has officially terminated the N740 billion contract with Julius Berger Plc for the construction of the Abuja-Kaduna-Zaria-Kano road project. The decision followed ongoing disputes over project costs, implementation challenges, and the contractor’s alleged refusal to comply with agreed terms.
A termination letter, signed by C.O Assam, Director of Legal Services at the Federal Ministry of Works, cited Clause 63 of the Standard Conditions of Contract (Road Works), 1999 Edition. The termination takes effect from the date the letter was served.
This development comes after the government issued a 14-day termination notice on November 4, citing Julius Berger’s failure to comply with reviewed project terms, cessation of work, and refusal to remobilize to the site for the Abuja-Kaduna section.
In a statement, Mohammed Ahmed, Director of Press and Public Relations at the ministry, explained that the decision followed months of stalled progress and unresolved disputes. The ministry accused Julius Berger of employing “delay tactics” and unilaterally attempting to adjust project scopes and costs despite prior approvals by the Federal Executive Council (FEC).
Originally scoped at N710.8 billion by an independent consultant, the contract was later adjusted to N740.8 billion to accommodate rising costs. Despite this, Julius Berger reportedly rejected the revised terms and sought further modifications, which the ministry deemed unacceptable.
The termination letter also highlighted that the contractor’s proposed changes—reducing project quantities while increasing unit rates—were contrary to the agreed terms. Consequently, the Federal Ministry of Works invoked Clause 63 to reclaim the project site.
The government stated that its engineers would conduct joint measurements of completed work in preparation for the site’s immediate takeover.
The ministry reaffirmed that the project, which involves constructing a 328.4-kilometer dual carriageway across three sections, was intended to be completed within 14 months under the revised contract terms. However, the contractor’s alleged uncooperative stance and escalating demands made continuation impossible.
The Federal Ministry of Works has assured Nigerians that it remains committed to delivering critical infrastructure and will take the necessary steps to ensure the completion of the project.
