– Variation represents 87.77% increase
Markson Abibo
Port Harcourt — A bombshell revelation has emerged from the Rivers State Government, exposing what it describes as a “shakedown attempt” by construction giant Julius Berger Nigeria PLC, following a staggering N171 billion variation request on a key infrastructure project—a demand the state outrightly rejected.
This development comes after The Guardian published a report claiming Julius Berger was withdrawing from project sites due to unpaid bills — a narrative the government has now debunked as “a smear campaign” in retaliation for refusing to approve the inflated cost adjustment.
The N171 Billion Bombshell
Documents obtained from the Rivers State Government reveal shocking details:
– Original Contract Sum: N195.6 billion (for the Ring Road project).
– Julius Berger’s Variation Request: An additional N171.7 billion—an 87.77% increase.
– Potential New Total: A jaw-dropping N367.4 billion.
What makes this demand particularly controversial? The state had already secured a N150 billion upfront payment (77% of the original sum) to avoid such disputes.
Government’s Stance: “Economic Sabotage”
In an exclusive statement, Hector Igbikiowubo, Senior Special Adviser on Media to Governor Ibas, accused Julius Berger of attempting to exploit the state.
“This isn’t just about cost overruns—it’s an attempt to hold Rivers State hostage. After receiving N150 billion upfront, they returned demanding nearly double the original budget. When we refused, this media blackmail began,” he said.
Julius Berger’s Silence
Efforts to reach Julius Berger for comment were unsuccessful. Industry insiders, however, suggest rising material costs and logistical challenges may have influenced the request. Yet, analysts question why such a massive adjustment was proposed after an advance payment meant to cushion such risks.
Political Undertones?
The timing raises eyebrows. With Rivers State under emergency rule, critics speculate whether the report was planted to undermine the administration. The Guardian has yet to retract its story or provide additional evidence of Julius Berger’s alleged withdrawal.
The government insists work continues on all projects, but the standoff highlights a deeper issue: Are contractors exploiting state governments with inflated variation requests?
As this battle plays out in the media and boardrooms, one thing is clear—Rivers State is drawing a line in the sand. The question now is: Will Julius Berger back down, or will this escalate into a legal and financial showdown?
Stay tuned for updates.
