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FG Saves N640bn by Switching Abuja-Kano Road Project to Concrete – Umahi
By Gloria Ikibah
The Federal Government has said that it will save over N640 billion by switching from asphalt to concrete for the construction of the Abuja-Kaduna-Zaria-Kano road.
Minister of Works, Engr. Dave Umahi, revealed this during a session with the Adhoc Committee monitoring the Anuja-Kano road project, chaired by Hon. Aminu Jaji.
Umahi disclosed that the contract, initially awarded to Julius Berger Nigeria was terminated due to alleged unethical practices and failure to meet project terms.
“By my engagement and approach, I saved the nation N640 billion from Julius Berger. If we had accepted their demand of N1.5 trillion, we would have incurred unnecessary costs. Now, we are saving the country over N640 billion while improving the road’s architecture,” Umahi said.
The letter of termination, issued on November 21 by the Ministry of Works’ Director of Legal Services, C.O Assam, cited Julius Berger’s alleged uncooperative behavior, repeated delays, and refusal to complete the project within the agreed 14 months.
The Minister insisted that the decision was within the Ministry’s rights and followed due process.
“The problem with Julius Berger is not just about cost. They refused conditions for timely completion and set booby traps for us. Despite 14 months of negotiations, we could not reach an agreement,” he added.
Umahi also stressed that the decision to use concrete, his preferred method, would ensure durability, lower costs, and faster completion.
“We are also incorporating additional features like solar lights and CCTV into the road project,” he noted.
The Adhoc Committee questioned whether terminating the contract and re-awarding it for concrete construction would be cost-effective.
A committee members, Rep. Idris Wase, demanded detailed documents on the project, including the contract agreement, payment records, and work progress.
“If certificates were raised, what was their value, and what percentage of work was completed? These are details we need to guide our decisions,” Wase said.
The Committee Chairman, Rep. Aminu Jaji also noted discrepancies in cost figures presented by the Ministry and Julius Berger, emphasizing the Committee’s commitment to ensuring transparency and accountability.
In an earlier meeting, Julius Berger blamed delays on funding challenges, government policy shifts, and insecurity.
The company’s representative, Mr. Benjamin Bott, stated that insecurity, including a bomb blast in Kaduna, kept workers off-site for 11 months.
Bott also revealed that work stalled when the government proposed switching to concrete after initial plans for asphalt. Julius Berger claimed the Federal Government owed them substantial sums, further hampering progress.
But the Ministry of Works maintains that re-awarding the contract for concrete construction will be more cost-effective and beneficial for the nation.
Julius Berger has been directed to submit all documents related to the contract for further review.
Chairman Jaji reassured stakeholders, and said “Our mandate is to ensure the project is completed in the best interest of the country.”
The former Governor of Kaduna State, Mallam Nasir El-Rufai was on Thursday arraigned before the Federal High Court in Abuja by the Department of State Services (DSS) over allegations bordering on unlawful interception of communications and threats to national security.
El-Rufai, who appeared before Justice Joyce Abdulmalik, denied all five counts contained in the amended charge filed against him by the prosecution. The case was brought by counsel to the DSS, Oluwole Aladedoye (SAN), who informed the court that the earlier three-count charge had been replaced with an expanded five-count amended charge dated April 13.
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According to the prosecution, the amended charges include allegations that the former governor unlawfully intercepted communications linked to the National Security Adviser, Nuhu Ribadu, without proper authorisation. He was also accused of engaging in activities involving technical systems that allegedly posed risks to public safety and national security.
El-Rufai, however, maintained his not-guilty plea when the charges were read in court.
At the proceedings, his counsel, Oluwole Iyamu (SAN), confirmed receipt of the amended charge and did not oppose its substitution for the earlier filing. The court subsequently struck out the initial three-count charge and proceeded with the new counts.
A key point of contention arose when the prosecution requested that the identities of two witnesses be protected through the use of pseudonyms, citing security concerns. The defence strongly objected, arguing that such a move would undermine the defendant’s constitutional right to fair hearing and to know his accusers.
The defence also challenged the prosecution’s request for consecutive hearing dates, stating that it could limit adequate access to legal representation, especially given El-Rufai’s ongoing custody under the Independent Corrupt Practices and Other Related Offences Commission.
Additionally, the defence informed the court of a pending bail application, noting that an earlier missing affidavit had been recovered and submitted. While the prosecution did not oppose the bail request, it urged the court to dismiss a separate application filed by the defence seeking to quash the amended charge, describing it as lacking merit.
The defence further asked the court to compel the prosecution to disclose its proof of evidence to enable proper preparation for trial, but the request was also opposed.
After listening to submissions from both sides, Justice Abdulmalik adjourned the matter to May 18, 19, and 20 for hearing.
President Bola Tinubu has formally written to the Senate, seeking approval for a $516.3 million foreign syndicated loan to support the construction of the Sokoto–Badagry highway.
In a communication read by the President of the Senate, Godswill Akpabio, on Thursday, President Tinubu requested a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to secure the financing for Sections 1, Phase 1A, and 1B of the project. The loan facility is to be arranged through Deutsche Bank AG.
President Tinubu explained that the superhighway project is a flagship initiative under his administration’s Renewed Hope Agenda, designed to enhance national connectivity, reduce travel time, and improve the movement of goods across key economic corridors.
The proposed 1,000-kilometre road will link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
He noted that the financing arrangement will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), while the Federal Government will provide counterpart funding of over 265 billion naira for land acquisition, compensation, and related infrastructure.
According to the president, the loan is structured for nine years, including a three-year grace period, with an interest rate pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. The Federal Executive Council has already approved the financing plan.
Following the presentation of the request at plenary, Akpabio referred the matter to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.
Endorsing the move, the Senate President said that it is better to borrow for projects to improve road safety and foster national integration.
Chairman of the Nigerian Union of Teachers (NUT), FCT chapter, Comrade Abdullahi Shafa, speaking after the meeting of the union leaders with the FCT Minister, Nyesom Wike, today.
He hailed the FCT minister for his quick intervention.
Watch:
Angry El-Rufai Protests Move To Shield Witnesses In NSA Phone-Tapping Case
Tinubu wants Senate’s approval of $516m fresh loan for Sokoto–Badagry Highway
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