The Minister of Works, Engr. Dave Umahi, announced that the decision to switch from using asphalt to concrete for the Abuja-Kaduna-Zaria-Kano road project would save the Federal Government over N640 billion. He disclosed this during his appearance before the Ad-hoc Committee chaired by Hon. Aminu Jaji, established to monitor the road's multi-billion-naira construction. The road contract, originally awarded to Julius Berger, was terminated by the Federal Government over allegations of unethical practices and non-compliance with the project's terms.
A termination letter, signed by the Director of Legal Services, Federal Ministry of Works, C.O. Assam, cited Clause 63 of the Standard Condition of Contract (Road Works) and became effective upon service to Julius Berger on November 21. The letter highlighted delays and the contractor’s uncooperative attitude as reasons for the decision.
Engr. Umahi criticized the seven-year delay and the substandard progress on the project, now re-awarded for concrete road construction. He noted that the decision would save over N640 billion compared to the N1.5 trillion demanded by Julius Berger after cost variations. He emphasized that the new approach would deliver higher quality results within a shorter timeframe.
Explaining the termination, Umahi stated, “I saved the nation N640 billion by rejecting Julius Berger’s inflated demands. Concrete roads are cheaper, better, and quicker to complete. The Federal Government acted within its rights to cancel the contract, as the contractor refused key conditions, including completing the project in 14 months and avoiding cost variations except in extreme circumstances.”
The Minister assured lawmakers that due process was followed, and the new contract would be open for bidding, allowing Julius Berger to participate if desired. He highlighted additional enhancements like solar lights and CCTV systems included in the revised project scope.
Hon. Jaji directed the Minister to provide all relevant documents, including the original contract agreement, payment records, and certificate rates, to guide the Committee in addressing the matter. Hon. Idris Wase, Chair of the House Committee on Federal Character, also requested details about work progress and financial reviews to reconcile discrepancies in project figures.
Julius Berger, in an earlier session with the Committee, attributed delays to policy changes, insecurity, and outstanding payments from the government. Company representative Mr. Benjamin Bott noted that work had halted for 11 months due to insecurity, including a bomb blast in Kaduna that endangered workers. The Committee instructed the company to submit all related documents to facilitate its review.
The lawmakers reiterated their commitment to ensuring the project is completed in the national interest.