Benin-Asaba Road: Umahi Offers Concessionaire Three Options Amid Construction Crisis

BENIN CITY — The Federal Government has given the Benin-Asaba Expressway Concession Company (BAECC) three options to resolve the challenges surrounding the construction of the Benin-Asaba Highway as pressure mounts over the worsening condition of the road.

The options were presented at a stakeholders’ meeting in Benin City, just a day after the Federal Government apologised to Nigerians for the hardship being experienced by motorists on the 125-kilometre highway.

The road was concessioned to BAECC in 2025, with completion expected in September 2027.

Works Minister David Umahi, who convened the meeting at the Government House, said the government had assembled three reputable contractors that could take over construction if BAECC agreed to the proposed arrangement.

Under the first option, BAECC would be granted the right of first refusal to operate and toll the highway after the Federal Government completes the construction. The arrangement would allow the concessionaire to recover its investment.

The second option is the termination of the concession agreement because of the disputes surrounding the project, with all relevant parties to be formally notified.

The third option would require BAECC to engage a competent contractor already operating in Nigeria, while the Federal Government would handle the project’s design and supervision.

Umahi said BAECC would continue to operate the tolling system under the third option and receive 70 per cent of the revenue, with the Federal Government taking 30 per cent.

The minister described the proposals as a generous offer and said the government was ready to take decisive action to resolve the crisis.

“We are available for trouble,” Umahi said.

According to him, the existing concession agreement had placed the government in a difficult position, with consequences attached to any decision that might be 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.

Umahi directed the BAECC chief executive officer to leave the project site temporarily while Independent Engineers conduct an assessment of all work executed, excluding what he termed “negative work.”

He questioned the company’s technical capacity to execute the project and urged it to allow the Ministry of Works to bring in competent contractors.

“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,” he said.

The minister also demanded written approval from BAECC for the ministry to deploy competent contractors, warning that the government would not allow the poor state of the road to result in public disorder.

He clarified that the concessionaire was not being ordered to abandon the project but instructed it to remove personnel the ministry considered unprofessional.

Umahi outlined several measures BAECC must undertake, including reinstating all asphalt removed from existing carriageways at its own cost, preventing water from flowing onto the road, restoring free traffic flow and removing the project director whose qualifications he questioned.

The concessionaire was also directed to provide evidence of its previous road construction experience, remove unsuitable stone-base materials and submit a technical design for storm-water channelisation.

Umahi accused BAECC of failing to comply with instructions from Independent Engineers, retaining allegedly unqualified personnel, destroying national assets, operating with inadequate equipment and engaging allegedly incompetent engineers.

He also alleged that the concessionaire lacked sufficient knowledge of road construction, had contributed to public disorder and abandoned the site without informing the relevant authorities.

Governor Monday Okpebholo said the condition of the highway was unacceptable, particularly after 16 months of construction.

“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,” he said.

The governor challenged BAECC to demonstrate its capacity to complete the project and said 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.

BAECC Head of Legal, Peterson Fabian, described the Federal Government’s proposals as friendly and collaborative but requested more time to consult with the company’s partners before reaching a decision.

Senator Allwell Onyesoh, Chairman of the Senate Committee on Works, described the condition of the Benin-Asaba Highway as terrible.

He said the crisis demonstrated the need for stricter scrutiny of concession agreements and the capacity of companies before major infrastructure projects are awarded.

“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.

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