FG Moves To Terminate Benin-Asaba Road Concession Over Contract Breaches

The Federal Government is considering the termination of the concession agreement for the 125-kilometre Benin-Asaba Highway following alleged breaches by the Benin-Asaba Expressway Concession Company Limited (BAECC).

The Federal Controller of Works in Edo State, Babatunde Tajudeen, disclosed this during a press briefing on the state of the concession project, noting that the Federal Ministry of Works was exploring measures to restore the highway and reduce the hardship faced by motorists.

The Benin-Asaba Highway stretches from the Ring Road Roundabout in Benin City, Edo State, to Summit Junction in Asaba, Delta State, and serves as a major link between the South-South, South-East and parts of the South-West regions.

Tajudeen explained that the highway was among the pilot corridors selected under the Federal Government’s Highway Development and Management Initiative (HDMI), designed to attract private-sector investment and technical expertise into the development and management of federal highways.

The Federal Executive Council approved the concession of the road to BAECC 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.

According to Tajudeen, Works Minister David Umahi’s inspection of the project on August 25, 2026, alongside Edo State Governor Monday Okpebholo, revealed several alleged violations of the concession agreement.

He listed the alleged breaches to include the removal of stable asphalt surfaces, engagement of unqualified personnel, inadequate capacity to execute the project, slow progress of work, substandard construction and poor traffic management.

He said the situation had contributed to recurring traffic gridlocks and further deterioration of the highway.

Tajudeen said the removal of asphalt had exposed the road’s subgrade to excessive rainwater, leaving the foundation oversaturated and worsening its condition.

“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,” he said.

The Federal Controller disclosed that the ministry had proposed the mutual termination of the concession, arguing that the concessionaire’s activities had contributed to the deterioration of the highway and raised concerns about its ability to complete the project within the approved Bill of Engineering Measurement and Evaluation.

He added that the ministry had directed BAECC to immediately reinstate the asphalt it removed and allow technically competent contractors from the Federal Ministry of Works to intervene while efforts continued to resolve the concession dispute.

Tajudeen appealed to motorists and other road users to remain patient, assuring them that the Minister of Works was considering legitimate alternatives to restore the highway and improve traffic flow.

The development comes amid growing concerns over the condition of the Benin-Asaba Highway and the impact of prolonged construction activities on motorists and communities along the route.