'Only the President Can Write Off That Debt': Umahi Reveals Julius Berger Owes FG N100 Billion, Demands N73 Billion Refund

Works Minister discloses contractor reported itself to National Assembly over overpayment on terminated Abuja-Kaduna-Kano road project

The Federal Government is demanding a N73 billion refund from construction giant Julius Berger following the termination of the Abuja-Kaduna-Kano road contract, with Works Minister David Umahi revealing that the company itself alerted authorities to the overpayment.

Speaking at a press conference in Abuja on Thursday, Umahi disclosed that Julius Berger owes the government N100 billion from the N739 billion already paid for the project. While the ministry has waived N27 billion after reviewing the company's claims, the balance of N73 billion remains outstanding—a debt the minister insists only President Bola Tinubu has the authority to forgive .

'They Reported Themselves'

Umahi explained that the ministry was unaware of the overpayment until Julius Berger disclosed it during engagements with the National Assembly following the contract's termination. The payments were processed by the Nigerian Sovereign Investment Authority, which shielded the ministry from direct visibility into the financial discrepancies .

"Don't forget that we are still owing government N100 billion. And that was very shocking to us, because Berger went to the National Assembly. They reported themselves, that out of this N739 billion, we are owing government another N100 billion," the minister stated .

Contract Termination After Failed Negotiations

The dispute traces back to efforts to complete the remaining 230 kilometres of the critical arterial road connecting Abuja, Kaduna, and Kano—a vital corridor for moving food and fuel between northern Nigeria and the rest of the country .

According to Umahi, Julius Berger proposed N1.5 trillion to finish the work, citing economic changes following naira floatation and subsidy removal. The government countered with N1.1 trillion, which the contractor rejected. After multiple meetings involving the Chief of Staff, the President, and the National Security Adviser failed to bridge the gap, the ministry terminated the contract .

'Only the President Can Write It Off'

The minister dismissed attempts by the contractor to lobby for relief, insisting his ministry lacks the power to forgive such a substantial debt.

"People are running around, going here and there, you know, damaging our names, but the point is, I told them, that they should not waste their time, that it's only the president that can write off that amount," Umahi said .

The minister also raised concerns about widespread vandalisation of critical infrastructure projects across the country, though he did not link this directly to the Julius Berger matter .

Julius Berger has yet to issue an official response to the minister's latest statements.