The Rivers State Government has firmly refuted recent media reports alleging that construction firm Julius Berger Nigeria PLC is pulling out of ongoing project sites across the state due to a supposed failure by the government to meet its financial obligations.
The government described the publication as false, misleading, and aimed at discrediting the current administration.
In a statement released by Mr. Hector Igbikiowubo, Senior Special Adviser on Media to the state government, the report was dismissed as a distortion of facts and a deliberate attempt to mislead the public.
He emphasized that the Rivers State Government has consistently fulfilled its financial responsibilities to all contractors, including Julius Berger, particularly since the introduction of the Emergency Rule in the state.
The government clarified that there is no truth to the allegation of unpaid dues, insisting that all contractual payments due to Julius Berger have been made as agreed.
It further explained that the misleading report appears to be part of a broader smear campaign that began after the government declined an inflated variation request concerning the Ring Road project.
According to the statement, the original cost of the Ring Road project was set at over 195 billion Naira.
However, Julius Berger later submitted a request for an additional 171 billion Naira, which would have increased the overall cost by nearly 88 percent—bringing the total to more than 367 billion Naira. The government described this variation as excessive and unjustifiable.
To avoid such cost inflation from the beginning, the Rivers State Government took a strategic financial step by securing a bank loan and making a substantial advance payment of 150 billion Naira—representing 77 percent of the original contract value.
This move, the government explained, was designed to ensure smooth project execution and to prevent unreasonable cost escalations.
The state administration believes that the false claims making the rounds are being fueled by individuals or interests who hoped to manipulate the government into approving an unreasonable financial demand.
Reaffirming its commitment to prudent financial management and transparency, the government stated that it remains focused on delivering key infrastructure projects without compromising the state’s fiscal stability.