A Senior Advocate of Nigeria, Abiodun Olatunji, has advised the Federal Government to exercise caution in considering any revocation of the 25-year concession agreement for the Benin-Asaba Expressway, warning that such action must comply with the provisions of the contract.
Olatunji, who reviewed issues surrounding the concession and the dispute between the Federal Ministry of Works and the Benin-Asaba Expressway Concession Company Limited, said the absence of evidence of abandonment, repudiation or unreasonable delay in the project may not be sufficient grounds for a unilateral termination of the agreement.
The legal opinion comes amid concerns over the deteriorating condition of the 125-kilometre highway and ongoing disagreements between the Ministry and the concessionaire. While acknowledging the Federal Government's responsibility to protect motorists and address safety concerns, the Senior Advocate maintained that emergency intervention on the road does not automatically justify terminating the concession.
According to him, any government intervention should be carried out within the framework of the agreement, including provisions relating to default, cure periods, compensation, lender protections and other contractual safeguards. He also argued that the Minister of Works does not possess a personal or general power to revoke the concession at will, noting that such decisions must follow the procedures established under the contract.
The Benin-Asaba Expressway concession, approved in 2023 under a Design, Finance, Build, Operate and Transfer arrangement, is one of several projects being implemented under the Federal Government's Highway Development and Management Initiative. Observers say the outcome of the dispute could influence investor confidence in future public-private infrastructure partnerships across the country.