The Federal Government of Nigeria has issued a seven-day ultimatum to Julius Berger to accept a revised offer of ₦740.79 billion for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road.
The minister of works David Umahi had expressed concern over ongoing delays, stating that they are causing significant hardship for road users and risking the termination of the contract.
He criticized the company for not mobilizing to the site despite approved funding, urging them to act with corporate responsibility amid Nigeria’s economic challenges.
The ultimatum was issued during a courtesy visit to the Minister by the new Managing Director of Julius Berger Plc, Dr Pier Lubasch, accompanied by the outgoing Managing Director, Dr Lars Richter, at the Ministry Headquarters in Abuja.
A statement issued by the Special Adviser (Media) to the Minister of Works, Orji Uchenna, on Wednesday, said the company risks termination of the contract if it does not accept the offer.
“The Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has for the umpteenth time called on Julius Berger Plc. to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740, 797,204,713.25 (Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350.”
He lamented that the delay in mobilising to the site despite the approved funds by the Federal Executive Council is causing untold hardship to the road users and that the Federal Government is at the receiving end of the situation.
“So if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price. We’ve had more than 20 letters from Berger on this. It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.”
The minister expressed dismay that Julius Berger Plc, which has had years of patronage by the Federal Government and sub-national governments, is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges.