Works Ministry Accuses Benin-Asaba Concessionaire of Contract Breaches

The Federal Ministry of Works has raised fresh concerns over the performance of the Benin-Asaba Expressway Concession Company Limited (BAECC), accusing the concessionaire of allegedly violating several provisions of its agreement with the Federal Government.

The Federal Controller of Works in Edo State, Engr. Babatunde Tajudeen, disclosed this during a press briefing on the Benin-Asaba concession project, saying the ministry was considering measures to restore the highway and reduce the hardship being experienced by motorists.

The 125-kilometre Benin-Asaba Highway, which runs from the Ring Road Roundabout in Benin City to Summit Junction in Asaba, Delta State, is a major federal road connecting the South-East, South-South and parts of the South-West.

Tajudeen explained that the highway was one of the pilot corridors under the Highway Development and Management Initiative (HDMI), introduced by the Federal Government to attract private-sector funding and technical expertise for the development and management of federal highways.

He said the Federal Executive Council approved the concession of the highway to BAECC on January 16, 2023, under a Design, Finance, Build, Operate and Transfer arrangement for 25 years, including a three-year construction period.

The concession agreement was subsequently signed on May 23, 2023.

According to Tajudeen, the Minister of Works, David Umahi, during an inspection of the project with Edo State Governor Monday Okpebholo on August 25, 2026, established that BAECC had allegedly defaulted on several provisions of the concession agreement.

He said the alleged breaches had contributed to a dispute over the execution of the project.

Among the violations listed by the Federal Controller were the complete scarification of stable asphalt surfaces, engagement of unqualified personnel, inadequate capacity to execute the project, slow pace of work, substandard construction and poor traffic management.

He said the situation had repeatedly resulted in severe gridlock and increased hardship for motorists using the highway.

Explaining the extent of the deterioration, Tajudeen said:

“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.”

The Federal Controller disclosed that the ministry had proposed the mutual termination of the concession, arguing that the concessionaire had contributed to further deterioration of the highway and might be unable to complete the project within the approved Bill of Engineering Measurement and Evaluation.

He added that the ministry had also urged BAECC to immediately reinstate the asphalt it removed and allow technically competent contractors from the Federal Ministry of Works to intervene in the project pending the resolution of the concession dispute.

Tajudeen appealed to motorists and other road users to exercise patience, assuring them that the Minister of Works was exploring legitimate alternatives to restore the highway and ease traffic congestion.

He also called on Nigerians to commend President Bola Tinubu for prioritising infrastructure development and the Minister of Works for his efforts to address road challenges across the country.