Julius Berger Halts Projects in Rivers Over Unpaid Government Funds

Construction giant, Julius Berger Nigeria PLC, has initiated the scaling back of operations at multiple project locations across oil-rich Rivers State due to irregular payment schedules from the state administration, with funding streams having ceased entirely.

The NigerDeltaInsider publication reported on this development, citing an internal company source who indicated that Julius Berger has “reportedly withdrawn from several major project sites across Rivers State.” The source attributed this decision to the Sole Administrator’s inability to maintain consistent project financing, despite the state’s continued receipt of federal allocations and significant internally generated revenue.

The publication revealed that numerous employees have been placed in holding patterns, with construction activities suspended at various sites while awaiting management instructions.

An informed source disclosed that contract payments, typically processed monthly, have remained outstanding for an extended period. Attempts to secure these payments have proven unsuccessful, as senior advisors to the Sole Administrator have avoided making concrete commitments regarding settlement.

Additional reports corroborated the workforce reduction at construction sites due to these payment issues. Field observations revealed a dramatic decrease in personnel at the Port Harcourt Ring Road project, where workforce numbers dropped from 800 to fewer than 300 workers as of last Thursday.

Weekend site visits confirmed these operational changes. The Ring Road construction area showed minimal activity compared to its previously continuous operations, while the Buguma-Degema road project in the Emohua region, which had reached peak activity levels, showed no ongoing work.

An affected employee, who experienced the workforce reduction, explained the project status: “On this Emohua, with all the landmark projects going on, we have already completed about 30%, while we have completed over 60% of the work on the long Ring Road project. But now, we are told to return home and stand by until they get payment from the government.”

The worker added concerns about complete withdrawal: “We even hear that if no payment is made by the end of June, the company will demobilise from the site. That means the entire Rivers State will become one huge chaotic site with abandoned projects all over; the result will be restiveness and crime, as the projects helped us—us-the indigenes-with—with jobs and kept us gainfully busy.”

In 2023, Julius Berger Nigeria PLC entered into a ₦195 billion agreement with the Rivers State Government for the Port Harcourt Ring Road construction, designed to connect at least five Local Government Areas throughout the state.

At the contract execution ceremony held in the Executive Council Chambers at Government House, Port Harcourt, Governor Siminalayi Fubara (now suspended) praised the construction company, stating: “The fact that Julius Berger has its successful professional imprint on every landmark project in the state qualifies the company to get the fresh contract.”

During the launch of the 19.7 km Kalabari Road Project, awarded to Julius Berger Nigeria PLC, Fubara emphasized his administration’s financial commitment: “We paid 30 percent of this project cost, for you to understand how we feel and how we value the Kalabari people. The contractor has assured us it will do a good job, and I believe that before the 15 months are over, life will be different here.”

He concluded: “Issues of criminality along the bad section of the road will be a thing of the past, and other positive developments will also come into your kingdom.”

These developments have generated considerable anxiety among residents in areas where the construction company operates, with many questioning their economic prospects.