Abuja, Nigeria – The Nigerian government has officially terminated its contract with Julius Berger Nigeria Plc, worth N740 billion, over what it cited as significant delays and instances of non-compliance with project timelines. The contract was part of a large-scale infrastructure development program aimed at improving the country’s road networks, which have suffered from years of underfunding and neglect.
Julius Berger, a major construction company in Nigeria with German roots, was originally awarded the contract due to its longstanding track record in handling large infrastructure projects. However, government sources indicate that repeated issues with project completion deadlines and deviations from agreed-upon specifications have strained the relationship between the company and the Nigerian authorities. The decision to terminate the contract was reportedly made after several warnings to the construction giant to improve its pace and quality of work went unheeded.
The N740 billion contract had been a key part of President Bola Ahmed Tinubu’s infrastructural agenda, focused on upgrading major highways and interconnecting key economic zones. Initially expected to boost economic activities by easing transportation of goods and services, the project had faced numerous setbacks attributed to what officials describe as “suboptimal performance” by Julius Berger.
In a statement, the Minister of Works and Housing remarked, “We understand the critical role that infrastructure plays in economic development and have demonstrated considerable patience with Julius Berger. Unfortunately, the recurring delays have forced us to reconsider the partnership.”
With the termination of the contract, the government is now exploring alternative contractors who can step in to complete the project within the required timeline and standards. Local construction companies are expected to bid for the contract, although international firms are likely to remain in the running.
The decision has sparked discussions in various sectors, with some industry stakeholders supporting the government’s tough stance on accountability, while others warn of potential complications from switching contractors midway through such a significant project. Julius Berger is yet to issue a formal statement regarding the contract termination.
The Nigerian government has assured the public that it remains committed to its infrastructural promises and will take all necessary steps to ensure the timely completion of the affected road projects.
