Abuja-Kaduna-Zaria-Kano (AKR) Dual Carriageway Project:

 

Setting the Record Straight and Reinforcing Commitment to Dialogue


Recent statements attributed to the Honourable Minister of Works, Senator David Umahi, CON, during his visit to the Abuja-Kaduna-Zaria-Kano (AKR) Highway project site, alongside a wave of ongoing media reports, have raised concerns. 

While we recognise and respect the Honourable Minister’s commitment to Nigeria’s infrastructure, it is imperative to clarify key facts regarding the AKR project and Julius Berger’s performance.  


Project Background and Economic Realities  


Julius Berger strives to deliver transformative infrastructure solutions while adhering to agreed budgets, timelines, and best-in-class sustainability standards. 

The company has a long-standing track record attesting to the integrity of this commitment.  

The AKR Highway project was costed in 2017 and flagged off in 2018, at which time inflation was approximately 16.5%. 

Since then, Nigeria has faced significant socio-economic challenges, including but not limited to inflation now exceeding 30% and exchange rate depreciation from ₦320/$ to over ₦1,600/$. 

These factors have driven sharp increases in energy and material costs, necessitating adjustments in line with our contract.  

Over the course of the project, Julius Berger introduced innovative solutions to achieve unmatched progress given the scope and requirements. 

This included pioneering an asphalt recycling methodology aligned with international best practices, significantly reducing construction time and costs.  


AKR Highway Project Status 

 

The AKR Highway project was 65% completed before the contract’s wrongful termination in December 2024. Progress across its sections was as follows:  

Section 1 (Abuja-Kaduna):30% completed. Work was suspended on 15th October 2024 due to unmet assurances. Furthermore, its status reflects the unprecedented security challenges faced along the route as well as consistent delays in payments by the client.  

Section 2 (Kaduna-Zaria): 100% completed.  

Section 3 (Zaria-Kano): 90% completed.  


Key Clarifications 


It is crucial to emphasise the following indisputable facts:  

1. Adherence to Contractual Obligations: All costs submitted by Julius Berger, including those addressing outstanding payments and cost adjustments, fully comply with contractual terms and are supported by detailed documentation shared with the Federal Ministry of Works.  

2. Unilateral Contract Termination: The AKR contract termination was unilateral. Julius Berger continues to seek an equitable resolution that upholds the principles of fairness and contractual compliance.  

3. Commitment to Dialogue and Facts: Julius Berger remains committed to constructive engagement with the Federal Ministry of Works to resolve outstanding issues amicably and in the spirit of collaboration. 

Contrary to recent claims:  

Julius Berger offered to complete the project within 14 months, leveraging its unrivalled operational infrastructure, as demonstrated across multiple projects.  

Despite widely publicised commitments by the Federal Ministry of Works, including a promised NGN 20 billion monthly payment, Julius Berger has not received any payments for works executed since November 2023. While we returned to the site in good faith, escalating costs and uncertainty over past-due payments forced us to halt work. 

Contrary to the Honourable Minister's statement, Julius Berger Nigeria Plc was not invited to participate in the re-tender process for the AKR Highway project and, therefore, could not have declined such an invitation.  


We Are a Partner for Progress 

 

For over 50 years, Julius Berger Nigeria Plc has remained a trusted partner in Nigeria’s development, delivering transformative infrastructure and building works with professionalism, transparency, and adherence to the highest standards of excellence. 

At no time in our history have the Federal Government, or any client, had reason to terminate a contract with Julius Berger. 

Collaboration, mutual respect, and shared goals have guided the successful delivery of projects, no matter the challenge.  

Through pre-financing works, advancing projects amidst adversity, and delivering critical national infrastructure reliably, we have demonstrated unwavering dedication and resilience. 

We remain confident that, through transparent dialogue, current matters can be resolved to further support the nation’s infrastructure goals.  

We assure our clients, partners, shareholders, and communities of our resolute commitment to progress and to our enduring values.  

We express our deepest appreciation to His Excellency, President Bola Ahmed Tinubu, GCFR, for his visionary leadership and commitment to advancing Nigeria’s goals under the Renewed Hope Agenda. 

His Excellency’s focus on reform, economic growth, and infrastructure development lays a solid foundation for transformative national progress. 

We stand ready to support this vision for the benefit of every citizen of Nigeria.  


EMIESEIFA JAMES AGAMA 

Head, Corporate Communication, Julius Berger Nigeria Plc.


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