The Federal Government has approved N17 billion for the rehabilitation of the fire-damaged Iddo Bridge in Lagos, following a downward review from the initial N27 billion proposal due to cost-efficiency concerns and project scope.
Minister of Works, Senator Dave Umahi, disclosed this during an inspection of the bridge on Friday in Lagos, as reported by the News Agency of Nigeria (NAN).
He revealed that the reduction came after extensive negotiations with Julius Berger Nigeria Plc, the contractor handling the project.
“The Federal Government has successfully negotiated the cost of the Iddo Bridge rehabilitation from an initial N27 billion to N17 billion.
“The Minister of Works, Sen. Dave Umahi, made this known to journalists during an inspection of the bridge on Friday in Lagos,” the NAN report read in part.
It further quoted Umahi as saying, “Julius Berger quoted, I think, N27 billion or thereabout, but after much negotiation and discussion, we have now arrived at N17 billion.”
He commended the company for its improved cooperation under new leadership, noting that the successful cost reduction was made possible by a more open and flexible negotiation process.
In recent months, the Federal Government has terminated several contracts with construction firms over pricing disagreements. Notably, in November 2024, the Ministry of Works terminated the N740 billion contract with Julius Berger for Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway spanning the FCT, Kaduna, and Kano States.
More insights
The Iddo Bridge sustained extensive structural damage following a fire incident traced to illegal occupants who had constructed makeshift shelters beneath the structure. The blaze, reportedly caused by the storage of chemicals and open flames, compromised three major spans of the bridge.
The Federal Government has also ruled out any return of informal settlers beneath the bridge, citing safety and structural preservation. The ministry reiterated its commitment to delivering durable infrastructure that meets safety standards and offers long-term value.