The Federal Government is considering ending its concession agreement with the Benin-Asaba Expressway Concession Company Limited (BAECC) over alleged breaches of the terms governing the 125-kilometre highway project.
The Federal Ministry of Works has raised concerns about BAECC’s performance, accusing the concessionaire of violating several provisions of its agreement with the 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 exploring options to restore the highway and reduce the hardship faced by motorists.
The Benin-Asaba Highway stretches from the Ring Road Roundabout in Benin City to Summit Junction in Asaba, Delta State. It is an important federal route connecting parts of the South-East, South-South and South-West regions.
Tajudeen explained that the road was among the pilot corridors selected under the Highway Development and Management Initiative (HDMI), a Federal Government programme designed to attract private-sector investment and technical expertise into the construction and management of federal highways.
The Federal Executive Council approved the concession to BAECC on January 16, 2023, under a Design, Finance, Build, Operate and Transfer model lasting 25 years, including a three-year construction period. The concession agreement was subsequently signed on May 23, 2023.
According to Tajudeen, Works Minister David Umahi’s inspection of the project on August 25, 2026, alongside Edo State Governor Monday Okpebholo, revealed alleged breaches of several provisions of the agreement.
Among the issues identified were the removal of stable asphalt surfaces, the engagement of allegedly unqualified personnel, inadequate capacity to execute the project, slow progress, substandard construction work and poor traffic management.
The Federal Controller said these problems had contributed to repeated and severe traffic congestion along the highway.
Explaining the consequences of the alleged breaches, 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.”
Tajudeen said the Federal Ministry of Works had proposed the mutual termination of the concession, arguing that the concessionaire’s activities had contributed to further deterioration of the highway.
He also questioned whether BAECC would be able to complete the project within the approved Bill of Engineering Measurement and Evaluation.
As part of efforts to address the situation, the ministry has asked BAECC to immediately reinstate the asphalt that was removed from the highway.
It also wants technically competent contractors from the Federal Ministry of Works to intervene in the project while discussions over the concession dispute continue.
Tajudeen appealed to motorists and other road users to remain patient as the government works towards finding a solution to the deteriorating road conditions.
He assured road users that the Minister of Works was considering lawful alternatives aimed at restoring the highway and easing the difficulties experienced by motorists.
The Federal Controller also called on Nigerians to commend President Bola Tinubu for prioritising infrastructure development and the Minister of Works for efforts to tackle road challenges across the country.
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