The federal government of Nigeria has issued a directive to Julius Berger, the contractor handling the N200 billion Bodo-Bonny road construction project, to return to the site within 14 days or face termination of its contract.
Works Minister David Umahi delivered the ultimatum during a meeting with the contractors, representatives of Nigeria Liquefied Natural Gas (NLNG), and royal figures from Bonny Kingdom, along with members of host communities in Abuja.
Umahi expressed dissatisfaction with Julius Berger’s unilateral halt of work on the project, emphasizing that the action was unacceptable. He rejected the company’s request for a contract variation based on fluctuations in exchange rates and rising material costs, stating that government contracts are not awarded based on exchange rates.
The minister criticized the delay in project completion, noting that adherence to the original timeline would have mitigated issues related to exchange rate fluctuations and material costs. Umahi pledged to present a proposal to President Bola Tinubu for additional funding to ensure project completion by December 2024.
Umahi offered an additional N20 billion out of the N28.5 billion demanded by Julius Berger to complete the project, with the condition that the company must accept the offer without imposing its own conditions. Failure to accept the offer within the specified time frame would result in contract termination.
Julius Berger’s Managing Director, Dr. Lars Richter, advocated for a contract variation due to the depreciation of the Naira and increased construction material costs. The Deputy Managing Director of NLNG, Olakunle Osobu, stressed the importance of completing the project, funded through the Tax Credit Scheme, to support the government’s efforts.
Representatives of host communities expressed gratitude to the president for prioritizing the completion of the Bodo-Bonny road project. They called on all stakeholders to remain patriotic and make necessary sacrifices for the project’s success.
