The Federal Government is demanding N100 billion from construction company Julius Berger over the Abuja–Kaduna–Kano road project, stating that most of the money is still owed to the government.
Works Minister David Umahi explained that the ministry had already waived N27 billion of the company’s claims, leaving N73 billion unpaid. He stressed that only the President can approve the write-off of this balance.
“The project was divided into four sections with a total rehabilitation cost of N150 billion. Berger replaced other contractors and took over the entire project. When we intervened, the project had already been fully awarded to Julius Berger at N650 billion, and out of N739 billion paid, they had completed about 240 kilometres, roughly 65 per cent of the work,” Umahi said.
The minister also outlined disagreements over the remaining sections of the road. “The balance was about 420 kilometres. Julius Berger offered to complete 230 kilometres for N1.5 trillion, but we could only offer N1.1 trillion. Since we could not meet their demand, we had to terminate the contracts,” he said.
Umahi noted that the termination led to a dispute, with Julius Berger approaching the National Assembly. “Despite the payments already made, the company still owes the government N100 billion. After reviewing their claims, the ministry allowed N27 billion, meaning N73 billion must be returned,” he said.
The minister further warned that repeated vandalism of public infrastructure across the country undermines major investments and complicates the delivery of critical transport projects already facing funding and contractual challenges.
