The Federal Government has issued a stern ultimatum to Julius Berger Plc, urging the construction giant to accept the revised contract terms for the rehabilitation of the 82-kilometer section II of the Abuja-Kaduna-Zaria-Kano road or face the termination of the agreement.
The ultimatum was delivered by the Minister of Works, Sen. Engr. David Umahi, during a meeting with the company’s newly appointed Managing Director, Dr. Pier Lubasch, at the Ministry of Works Headquarters in Abuja.
The Minister expressed frustration over the company’s delay in mobilizing to the project site, despite the Federal Executive Council’s approval of the revised contract sum of ₦740.8 billion. The delays, he noted, have led to increased project costs and severe hardships for road users.
“So if Berger is not doing it, then let’s have other people do the job within a price we can control,” Umahi stated. He revealed that the project’s cost had escalated from ₦710 billion to ₦740 billion due to prolonged negotiations.
“If we continue the delays, it becomes the Ministry’s problem,” he added, making it clear that the Federal Government would not be held hostage by what he described as unrealistic pricing demands.
Umahi gave Julius Berger a seven-day deadline to either accept or reject the revised contract sum. He warned that any further delay would force the government to seek alternative contractors.
“This offer is not subject to any condition. After 14 months of negotiation, it is time to end it,” he said, stressing that sacrifices were necessary to meet the nation’s infrastructure goals.
The Minister also highlighted the need for construction companies working with the government to prioritize value for money and realistic pricing, especially given Nigeria’s economic challenges. He noted that several projects by Julius Berger had already been terminated due to site abandonment, adding, “Nigerians are suffering, and we cannot allow this to continue.”
In response, the new Managing Director, Dr. Pier Lubasch, promised to address the issues promptly and seek a resolution to move the project forward. Dr. Lars Richter, the outgoing MD, explained that the courtesy visit was also to introduce the company’s new leadership.
