‘We Will Terminate The Contract’ – FG Threatens Julius Berger Over Price Dispute

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Rachel Okporu Fadoju

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FG Needs ₦16 Trillion To Complete Road Projects - Umahi

The Federal Government has threatened to revoke the contract of Julius Berger (Nig.)Plc, due to a price dispute.​


Naija News reports that the Minister of Works, David Umahi, made this known during a meeting with Julius Berger (Nig.)Plc, represented by its Executive Director, Projects, Engr. Benjamin Bott.

Umahi urged Julius Berger to accept the N740.7 billion approved by the Federal Executive Council (FEC) to complete the remaining section of the Abuja-Kaduna-Kano highway.

According to the Minster, the Federal government has paid N391 billion, while the newly reviewed price means the government will pay an additional N391 billion to complete the road.

Umahi threatened to revoke the contract if Julius Berger does not accept the price, stating that the prices on the said projects were the best because of the economic reality.

While urging the company to fast-track the completion of the rehabilitation of the 82-km Section II of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in FCT, Kaduna, and Kano States, Umahi called for its completion within 14 months.

He said, “We have written to the President to approve that if JBN Plc does not accept the N740 billion, we will terminate the contract. We have terminated some of their jobs because we’ve been negotiating sometimes 12 months, 13 months. There must be an end to negotiation.

“We are ready to pay you (JBN Plc) even fresh mobilisation, just to underscore the interest of the President on this project. So, we are appealing and begging you that by Monday, you should be able to sign the addendum to the contract.”




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