Rivers State Government Dismisses Reports of Julius Berger’s Exit, Clarifies Ongoing Project Commitments

The Rivers State Government has strongly denied reports that Julius Berger Nigeria Plc has left its project sites in the state, calling the claims false, misleading, and an attempt to mislead the public.

This denial comes in response to a widely circulated publication which alleged that Julius Berger had commenced demobilization from ongoing construction works in Rivers State over unpaid contract fees by the state government. The report triggered widespread concern among residents and stakeholders regarding the future of infrastructural projects currently underway.

However, in a statement released on Friday and signed by the Senior Special Adviser on Media to the Rivers State Government, Hector Igbikiowubo, the state government categorically dismissed the report as malicious and aimed at discrediting the current administration led by Governor Ibok-Ete Ekwe Ibas, a retired Vice Admiral.

“The Rivers State Government, under the leadership of His Excellency, Vice Admiral (Rtd) Ibok-Ete Ekwe Ibas, strongly condemns the misleading and malicious publication titled ‘Julius Berger withdraws from Rivers’ project sites,’” the statement read.

“The report, which falsely claims that Julius Berger Nigeria Plc has begun withdrawing its services from project sites in Rivers State due to alleged shortfalls in payments by the government, It is a deliberate distortion of the truth and an intentional effort to damage the image of the administration.”

The government further explained that all financial obligations to contractors, including Julius Berger, have been fully met. Since the commencement of emergency governance measures in the state, all due payments have been made without delay, the statement asserted.

“Nothing could be farther from the truth,” it continued. “The Rivers State Government has consistently and dutifully met all its contractual obligations to contractors, including Julius Berger Nigeria Plc, which has received all payments due since the declaration of Emergency Rule in the state.”

Providing clarity on what it described as the actual motive behind the viral misinformation, the government pointed to a pending request for contract variation submitted by Julius Berger. According to the statement, the company had requested a significant cost adjustment for the ongoing Ring Road project, which, if granted, would increase the project’s cost by nearly 88 per cent.

“The real motive behind this baseless report is nothing more than a campaign of calumny orchestrated after failed attempts to pressure the Rivers State Government into approving an exorbitant and unjustified variation request for the ongoing Ring Road project,” the statement alleged.

Breaking down the figures, the statement revealed that the original contract value for the Ring Road project was ₦195.7 billion. However, Julius Berger has submitted a variation proposal seeking an additional ₦171.76 billion, representing an 87.77 per cent increase. Approval of such a request would inflate the total cost to over ₦367.45 billion.

To avoid this kind of financial strain and ensure transparency from the start, the Rivers State Government noted that it had taken proactive steps at the project’s commencement. It explained that a facility was secured from a commercial bank to provide advance payment for the project. Consequently, Julius Berger received a sum of ₦150 billion upfront, representing 77 per cent of the original contract value.

“It is important to note that in an attempt to forestall such unreasonable claims and protect the State from arbitrary variation requests, the Rivers State Government at the commencement of the project took a facility from a bank and paid a 77 per cent advance payment in the sum of ₦150,000,000,000.00 to Julius Berger,” the statement clarified.

The government reaffirmed its commitment to delivering critical infrastructure to the people of Rivers State, emphasizing that it would continue to uphold principles of fiscal responsibility and transparency in its dealings with contractors and other stakeholders.

This rebuttal aims to reassure citizens, stakeholders, and partners that ongoing projects remain on course and that no credible contractor has disengaged from their contractual duties due to any alleged financial breaches. The Rivers State Government reiterated that it remains focused on delivering legacy projects that will enhance development, connectivity, and economic growth across the state.