FG Set to Cancel Benin-Asaba Road Concession Over Alleged Contract Violations
The Federal Government has moved to terminate the concession agreement for the Benin-Asaba Road following alleged breaches of key contractual provisions by the concessionaire handling the project.
The Federal Controller of Works in Edo State, Babatunde Tajudeen, disclosed the development during a press briefing on the Benin-Asaba concession project. He said the Federal Ministry of Works is considering a mutual termination of the agreement as part of efforts to restore the highway and ease the hardship faced by motorists.
The 125-kilometre Benin-Asaba Highway stretches from the Ring Road Roundabout in Benin City to Summit Junction in Asaba, Delta State. It is a major transport route linking the South-South and South-East regions with other parts of Nigeria. The poor condition of the road has caused severe traffic delays and growing concerns among road users.
According to Tajudeen, the concession was approved by the Federal Executive Council on January 16, 2023. It was awarded to the Benin-Asaba Expressway Concession Company Limited under a 25-year Design, Finance, Build, Operate and Transfer arrangement. The agreement was later signed on May 23, 2023.
The Federal Government said it identified several alleged breaches in the execution of the project. These include the removal of stable asphalt surfaces, the use of personnel considered unqualified, slow progress of work and alleged substandard construction.
The government also accused the concessionaire of poor traffic management. Officials said the situation has contributed to repeated gridlock and increased hardship for motorists using the highway.
The latest move follows an inspection of the road by Works Minister David Umahi and Edo State Governor Monday Okpebholo on August 25. Umahi had earlier criticised the concessionaire over its handling of the project and questioned its capacity to complete the work within the approved specifications.
The minister had also asked the concessionaire to formally write to the Federal Government to allow the termination process to proceed. He directed that obstructions on the highway be removed and that damaged sections be addressed to restore traffic flow.
Tajudeen said the ministry believes the concessionaire may not be able to complete the project under the existing arrangement. He added that the government had proposed a mutual termination of the concession.
The ministry has also proposed the reinstatement of asphalt that was removed from parts of the highway. It wants technically competent contractors to intervene while the dispute over the concession is resolved.
The Federal Government said its immediate priority is to restore the highway and reduce the hardship experienced by motorists. The move to end the concession could therefore pave the way for a new approach to the rehabilitation and management of the Benin-Asaba Road.
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