The Federal Government has issued a seven-day ultimatum to Julius Berger to accept its N740.79 billion offer for completing a section of the Abuja-Kano Highway or risk contract termination.
Minister of Works, Senator David Umahi, made this known while addressing journalists after the Federal Executive Council meeting on Wednesday.
Umahi stated that negotiations with Julius Berger have been ongoing since September 2023, but the government has decided to bring the talks to a close.
“We have not had it so good with Berger because we’ve been negotiating with them since September 2023, but yesterday we said this negotiation must come to a stop.
“We are giving them seven days; if, after seven days, they don’t accept our offer, which is the highest so far in the country, we have no other option than to issue them 14 days termination notice in accordance with the contract laws,” Umahi said.
READ ALSO: Wike Revokes Julius Berger’s Abandoned Abuja Land, To Build Judges’ Quarters On It
Umahi also disclosed that the Shagamu-Benin road is undergoing critical rehabilitation, while procurement processes are being finalized for its full reconstruction using reinforced concrete pavement.
Additionally, the Abuja-Kano road, previously slated for a tax credit arrangement, will now be procured without such a provision, with the 162-kilometer Berger section already approved for ₦740 billion.
The Minister further revealed that works on the Oyo-Ogbomosho road, a project stalled for 18 years, will resume, and the Makurdi-Katsina-Ala road will undergo significant repairs.
Umahi also addressed the inherited debt profile of ₦1.6 trillion tied to 2,604 projects, with a total contract value of ₦13 trillion.
To manage the backlog, he said the Ministry has initiated a phased approach to project completion based on available funding.
