Julius Berger Addresses Concerns on Abuja-Kaduna-Kano Highway Project

Recent remarks by the Honourable Minister of Works, Senator David Umahi, CON, and media reports about the Abuja-Kaduna-Zaria-Kano (AKR) Highway project have raised concerns. While we respect the Honourable Minister’s dedication to infrastructure, it is essential to clarify key details regarding Julius Berger’s performance on the project.

Background of the Project and Economic Factors

Julius Berger is committed to delivering transformative infrastructure solutions within budget, timelines, and environmental standards. This commitment is evident in the company’s long-standing track record.

When the AKR Highway project was signed in 2018, inflation stood at 16.5%. Today, inflation exceeds 30%, and the exchange rate has depreciated from ₦320/$ to over ₦1,600/$. These economic factors significantly impacted energy and material costs, necessitating adjustments in line with contractual agreements.

Innovative Approaches and Progress

Julius Berger introduced asphalt recycling, reducing construction time and costs. Despite challenges, the following progress was achieved before the contract's termination in December 2024:

• Section 1 (Abuja-Kaduna): 30% completed. Work halted on October 15, 2024, due to payment delays and security challenges.
• Section 2 (Kaduna-Zaria): Fully completed.
• Section 3 (Zaria-Kano): 90% completed.

Key Points for Clarification

1. Contractual Compliance: All submitted expenses, including unpaid invoices and cost adjustments, comply with the contract. Comprehensive documentation has been provided to the Federal Ministry of Works.
2. Payment Delays: Julius Berger has not received payment for completed work since November 2023, despite promises of ₦20 billion monthly payments. Rising costs and uncertainties forced work stoppages.
3. Re-Tender Process: Contrary to claims, Julius Berger was not invited to the AKR Highway project’s re-tender process.
4. Commitment to Dialogue: Julius Berger remains dedicated to resolving disputes amicably with the Federal Ministry of Works.

Julius Berger’s Legacy in Nigeria

For over 50 years, Julius Berger has been a trusted partner in Nigeria’s development, delivering transformative infrastructure projects with professionalism and excellence.

"We have consistently pre-financed projects, persevered through challenges, and delivered vital national infrastructure. Cooperation, respect, and shared goals have driven our success," the statement emphasized.