The Federal Government is considering the termination of its concession agreement with the Benin-Asaba Expressway Concession Company Limited (BAECC) over alleged breaches of key provisions of the contract.
The Federal Ministry of Works said the concessionaire’s alleged failure to meet critical obligations under the agreement had contributed to the worsening condition of the 125-kilometre Benin-Asaba Expressway and increased hardship for motorists.
The Federal Controller of Works in Edo State, Engr. Babatunde Tajudeen, disclosed this during a press briefing on the controversial concession, saying the ministry was exploring measures to restore the highway while efforts to resolve the dispute continue.
The highway, which runs from the Ring Road Roundabout in Benin City to Summit Junction in Asaba, Delta State, is a major transport corridor connecting the South-South, South-East and parts of the South-West.
The road was concessioned to BAECC under the Federal Government’s Highway Development and Management Initiative (HDMI), a public-private partnership framework designed to attract private investment and technical expertise into the rehabilitation and management of federal highways.
The Federal Executive Council approved the concession on January 16, 2023, under a 25-year Design, Finance, Build, Operate and Transfer arrangement, including a three-year construction period. The concession agreement was signed on May 23, 2023.
Tajudeen said the Works Minister, David Umahi, raised concerns over the concessionaire’s performance during an inspection of the project with Edo State Governor Monday Okpebholo on August 25, 2026.
According to him, the inspection revealed several alleged violations, including the removal of stable asphalt surfaces, engagement of personnel considered unqualified for the project, inadequate capacity to execute the works, slow progress, substandard construction and ineffective traffic management.
He said the situation had repeatedly triggered severe traffic congestion along the corridor.
“Everybody knows there is a dispute in the course of the execution of the contract. They peeled off our asphalt, exposing the subgrade foundation to excessive rainwater. By so doing, the subgrade material has become oversaturated,” Tajudeen said.
The Federal Controller said the ministry had proposed a mutual termination of the concession, citing concerns that the continued execution of the project under the existing arrangement could further worsen the condition of the highway.
He added that there were also concerns that the concessionaire might be unable to complete the project within the approved Bill of Engineering Measurement and Evaluation.
As an immediate measure, the ministry has asked BAECC to reinstate the asphalt removed from sections of the highway and permit technically competent contractors engaged by the Federal Ministry of Works to intervene while the concession dispute is being resolved.
Tajudeen assured motorists that the ministry was working to find a lawful and sustainable solution to the crisis.
He appealed to road users to remain patient, saying the government was determined to restore the highway and reduce the hardship caused by the deteriorating sections and recurring traffic gridlock.
