The Federal Government has given the Benin-Asaba Expressway Concession Company (BAECC) three options on the way forward with the construction of the Benin-Asaba Highway, following widespread concerns over the deteriorating condition of the road.
The development came 24 hours after the Federal Government apologised to Nigerians over the hardship being experienced by motorists using the highway.
The 125-kilometre highway was concessioned to BAECC in 2025 and is expected to be completed in September 2027.
Speaking at a stakeholders’ meeting convened by the Minister of Works, David Umahi, at the Government House, Benin City, the Minister said three reputable contractors had been assembled to take over the construction if BAECC agreed to the proposed terms.
Umahi said the first option was for the concessionaire to be given the right of first refusal to operate and toll the road after the Federal Government completes the construction, allowing it to recover its investment.
The second option, he said, was termination of the concession agreement due to existing disputes, with all relevant stakeholders duly informed.
The third option was for BAECC to engage a competent contractor already operating in Nigeria, while the Federal Government would take responsibility for the design and supervision of the project.
Under the third option, Umahi said BAECC would retain the right to toll the highway and receive 70 per cent of the revenue, while the Federal Government would receive 30 per cent.
The Minister described the options as a generous offer, stressing that the government was prepared to take necessary steps to address the situation.
“We are available for trouble,” he said.
Umahi said the concession agreement had placed the government in a difficult position and warned that there would be consequences for whichever decision was eventually taken.
“By the concession agreement, we played into the hands of the concessionaire. There are implications of any decision we take. It is up to the concessionaire to lower his pride,” he said.
He directed the BAECC chief executive officer to withdraw from the project site, while the Independent Engineers would assess all work executed, excluding what he described as “negative work.”
“We want to plead, we do not see you having the capacity to fix the road. Allow the Ministry of Works to bring in competent contractors. You have no technical capacity. It is a highly technical job. It will require committed personnel,” Umahi said.
He urged BAECC to provide written approval for the ministry to bring in competent contractors, warning that the government could not allow the deteriorating condition of the road to lead to public disorder.
The Minister said the concessionaire was not being asked to abandon the project but directed it to remove unprofessional personnel from the site.
He also listed a number of corrective measures, including reinstating all removed asphalt at the concessionaire’s cost, removing water flowing onto the carriageway, restoring free flow of traffic and removing the project director whose qualifications, he said, were in doubt.
Other directives included providing evidence of previous road construction experience, removing unsuitable materials used as stone base and submitting a technical design for storm-water channelisation.
Umahi also accused BAECC of several defaults, including failure to comply with instructions from the Independent Engineers, refusal to remove allegedly unqualified personnel, destruction of national assets, inadequate equipment, engaging allegedly incompetent engineers and demonstrating inadequate knowledge of road construction.
He further accused the concessionaire of creating public disorder and abandoning the project site without notifying the relevant authorities.
Governor Monday Okpebholo expressed concern over the condition of the highway, saying the state of the road was unacceptable after 16 months of work.
“What we are seeing now is not what we are supposed to be seeing after 16 months. You cannot give what you do not have,” the governor said.
He urged the concessionaire to demonstrate its capacity to execute the project, adding that Edo residents were watching developments closely.
“Do the needful. Edo people are watching. Something has to be done between now and Christmas. I believe in what people will see. You cannot make profit where you are not working. There has to be a laid-down principle,” Okpebholo said.
Responding, the Head of Legal, BAECC, Peterson Fabian, described the Federal Government’s proposals as friendly and collaborative.
He appealed for more time to enable the company consult with its partners and hold further discussions before deciding on the way forward.
Chairman of the Senate Committee on Works, Senator Allwell Onyesoh, described the condition of the Benin-Asaba Highway as terrible and said the situation had exposed the need for greater scrutiny of concession agreements in Nigeria.
“The concessionaires and whoever pushed for this concessionaire did not mean well for Nigeria, and this is a big lesson about concessionaires in Nigeria. We can see that it is not everybody that has the capacity to handle such a big project,” he said.
