Concerns have been raised by recent remarks made by the Honourable Minister of Works, Senator David Umahi, CON, while he was visiting the Abuja-Kaduna-Zaria-Kano (AKR) Highway project site, as well as a flurry of ongoing media reports. The Honourable Minister’s dedication to Nigeria’s infrastructure is acknowledged and respected, but it is necessary to make clear some important details about the AKR project and Julius Berger’s performance.CONTINUE FULL READING>>>>>
Background of the Project and Economic Factors Julius Berger aims to provide game-changing infrastructure solutions while staying within predetermined spending limits, schedules, and industry-leading environmental guidelines. The integrity of this dedication is attested to by the company’s longstanding track record.
When the AKR Highway project was signed off in 2018, inflation was about 16.5%, having been estimated in 2017. Since then, Nigeria has seen severe socioeconomic problems, such as inflation that is currently above 30% and exchange rate depreciation from 320/$ to over 1,600/$, which has caused energy and material prices to rise sharply. Due to these considerations, we had to make changes in accordance with our contract.
In accordance with international best practices, Julius Berger pioneered an asphalt recycling methodology, which allowed for a significant reduction in construction time and costs. Throughout the project, he introduced innovative solutions that brought unparalleled progress in terms of scope and requirements. Status of the AKR Highway Project The contract was wrongfully terminated in December 2024, with just 65% of the AKR Highway project finished. The following was the progress made in each of its sections:
Abuja-Kaduna Section 1: 30% finished. Work was halted on October 15, 2024, because of unfulfilled promises. Additionally, the route’s security issues are unparalleled, and the client’s persistent payment delays are reflected in its status.
Section 2 (Kaduna-Zaria): finished in full.
Section 3 (Kano, Zairea): 90% finished.
Additionally, it is imperative to highlight the following undeniable facts: Compliance with Contractual Obligations: All of Julius Berger’s submitted expenses, including those pertaining to unpaid invoices and cost adjustments, are in complete accordance with the provisions of the contract and are backed up by thorough documentation that has been shared with the Federal Ministry of Works.
The AKR contract was terminated unilaterally, and Julius Berger is still looking for a fair solution that respects the values of justice and contractual observance.
Julius Berger is still dedicated to constructively engaging with the Federal Ministry of Works in order to settle remaining concerns in a cooperative and friendly manner. Despite recent assertions:
Julius Berger pledged to finish the project in 14 months by utilizing its unparalleled operational infrastructure, which has been proven in several projects. Julius Berger has yet to receive payment for completed work since November 2023, despite the Federal Ministry of Works’ widely reported pledges, which included a promised NGN 20 billion monthly payment. Even though we went back to the site in good faith, we had to stop work because of rising expenses and uncertainties around past-due payments.
We are collaborating to advance For more than half a century, Julius Berger Nigeria Plc has been a reliable collaborator in Nigeria’s progress, providing revolutionary construction and infrastructure projects with professionalism, openness, and a commitment to the highest standards of quality. During our existence, neither the Federal Government nor any of our clients have ever had the need to end a contract with Julius Berger. Despite the challenges, projects have been successfully completed thanks to cooperation, respect for one another, and common objectives.
We have proven our steadfast commitment and perseverance by pre-financing projects, moving forward with projects in the face of hardship, and consistently providing vital national infrastructure. We continue to believe that present issues can be handled to better support the country’s infrastructure ambitions through open communication. We reassure our communities, shareholders, partners, and clients of our unwavering dedication to advancement and our core principles.
His Excellency, President Bola Ahmed Tinubu, GCFR, has our sincere gratitude for his visionary leadership and dedication to furthering Nigeria’s objectives under the Renewed Hope Agenda. His Excellency’s emphasis on infrastructure development, economic expansion, and reform creates a strong basis for revolutionary national advancement. For the good of all Nigerians, we are prepared to back this goal.
Signed:
For: Nigeria Plc, Julius Berger.
James A. Emieseia Ama CORPORATE COMMUNICATION
HEAD NIGERIAN JULIUS BERGER PLC
