The Federal Government of Nigeria, through the Ministry of Works, has taken significant action regarding the Abuja-Kaduna highway project by revoking a portion of the contract with the construction firm Julius Berger. This announcement was made by the Minister of Works, David Umahi, during a visit to the Zuba area of the Federal Capital Territory to inaugurate rehabilitation efforts on the highway. The original contract had been awarded to Julius Berger in 2018 during the administration of former President Muhammadu Buhari. While notable progress has been achieved in other sections of the project, specifically the Kaduna-Zaria and Zaria-Kano areas, the Abuja-Kaduna section has stagnated with only 27 percent completion over a span of six years.
Minister Umahi expressed frustration regarding Julius Berger’s management of the project, implying that the company engaged in political maneuvering to undermine the current administration’s credibility. He highlighted that Julius Berger initially sought N1.5 trillion to complete the project, but this was reduced to N740 billion following deliberations with the Federal Executive Council. Umahi recounted the negotiation process, including letters written weekly since the previous September, as both parties attempted to navigate funding and the project’s timeline despite ongoing issues like traffic congestion and security threats, including kidnappings along the highway.
The minister emphasized that the negotiations revealed a pattern of delaying tactics from Julius Berger, culminating in a series of budget increases that raised the project’s financial needs unexpectedly. After the project’s cost was supposedly capped at N740 billion, the company sought yet another increase, this time to N903 billion. Umahi firmly stated that any future cost escalation would not be tolerated and remarked on the inefficiency of Julius Berger to the extent that the government would consider reassigning the contract to more capable contractors who could deliver similar quality at lower rates.
Adding insult to injury, Umahi accused the company of politicizing the project to tarnish the government’s image, declaring a definitive end to such tactics. He mentioned that the dualized road spans 375 kilometers (equivalent to 750 kilometers) and would be extended by an additional 7.5 kilometers in Kogi and Kano states, emphasizing the government’s commitment to seeing the project through with a new direction. In a shift towards resolving the ongoing issues with the contract, the project was described as being “de-scoped,” which entails reorganizing its scope and subsequently re-awarding missing segments to other reputable companies.
As part of this strategic reallocation, the government has enlisted Dangote Group and BUA to construct specific sections of the highway, which marks a significant policy pivot aimed at reducing reliance on Julius Berger. For example, the Dangote Group will undertake a 38-kilometer dualized section for a fixed sum of N145 billion, with completion anticipated within 14 months. The collaboration with these new contractors signifies a departure from previous arrangements, favoring a more competitive environment that aims for efficiency and accountability.
Additionally, the funding mechanism for the project has transitioned from its original financing scheme via the Presidential Infrastructure Development Fund to the Tax Credit Scheme. This change reinforces the government’s strategic shift in project financing and could enhance the viability and sustainability of infrastructure projects in Nigeria. By fostering more direct partnerships with reputable companies that can deliver quality work on schedule, the Federal Government seems to aim not only to expedite the Abuja-Kaduna highway’s completion but also to set a precedent for future infrastructure projects across the nation.
