Senate, Julius Berger Renew Partnership to Drive National Infrastructure Growth

The Senate and Julius Berger Nigeria Plc have resolved their differences, signaling a renewed commitment to advancing Nigeria’s infrastructure development.
Recall that the Senate had on the 12th of December, 2024 issued a warrant of arrest against the Managing Director of Julius Berger Nigeria Plc ,for persistently refusing to appear before its committee on Works .
Resolution of the Senate on Warrant of Arrest against MD of Julius Berger, followed motion moved to that effect by the Senate Minority Whip , Senator Osita Ngwu (PDP Enugu West) .
Senator Ngwu in the motion co – sponsored by Senators Asuquo Ekpenyong ( APC Cross River South) and Mpigi Barinada (PDP Rivers South East), informed the Senate that Julius Berger Plc Julius Berger has persistently refused to appear before the Senate Committee on Works for required explanations on projects abandonment and alarming contract variation from N54billion to N195billion .
But the Senate in plenary Tuesday , vacated the warrant of arrest on the strength of written apology forwarded to it by Julius Berger .
The resolution followed a formal apology tendered by Julius Berger’s Managing Director, Engr. Dr. Peer Lubasch, for the company’s absence at previous Senate hearings.
The Senate accepted the apology, affirming its commitment to fostering cooperation with the construction giant.
Speaking at the Senate Committee on Works hearing on Tuesday, Committee Chairman Senator Barinada Mpigi said, “We have sealed our relationship with Julius Berger and are now on the same page. The absence at earlier meetings has been put behind us, and we are focused on ensuring progress in ongoing projects.”
The hearing also addressed the stalled Odukpani-Itu-Ikot Ekpene Road project.
Senator Mpigi stressed the need for clarity on why Julius Berger pulled out of the project, noting that unresolved challenges such as inflation, delayed payments, and outdated contract rates had significantly affected its progress.

Dr. Lubasch, while explaining the company’s position, highlighted macroeconomic pressures and unresolved right-of-way issues as major obstacles. He said unit rates for the project were negotiated in 2016, but subsequent cost increases—bitumen by 800%, diesel by 700%, and cement by 350%—had made the project financially unsustainable without adjustments.

Despite these challenges, he affirmed Julius Berger’s commitment to delivering quality infrastructure, often pre-financing works to ensure progress on critical projects.
Senator Mpigi lauded Julius Berger’s longstanding reputation for delivering world-class infrastructure. “With great reputation comes great responsibility,” he said, emphasizing the importance of collaborative efforts to meet Nigeria’s infrastructural demands.

Acknowledging Julius Berger’s apology and proactive engagement, Mpigi expressed optimism about resolving challenges and ensuring project completion.
Dr. Lubasch reaffirmed the company’s dedication to Nigeria’s development, describing it as a trusted partner for over 50 years. “Our mission is to deliver transformative infrastructure that supports Nigeria’s developmental priorities,” he stated.

He commended President Bola Ahmed Tinubu’s administration for its Renewed Hope Agenda, particularly its focus on forex reforms, minimum wage increases, and infrastructural development. He described these initiatives as enablers for economic growth and inclusivity.

Dr. Lubasch urged the Senate to address systemic challenges in the construction industry, stressing the need for due process and adherence to contractual agreements. He highlighted that the issues discussed were not unique to Julius Berger but indicative of broader challenges affecting the sector.

“We are confident that through collaborative efforts, we can overcome these obstacles and deliver infrastructure projects that drive economic growth and improve the lives of all Nigerians,” he said.

With Julius Berger and the Senate aligning on shared goals, the renewed partnership promises progress in delivering critical infrastructure projects, marking a significant step toward achieving Nigeria’s developmental aspirations.

END