Nigeria lawyer cautions against revoking Benin-Asaba Expressway concession

Senior Advocate of Nigeria (SAN) Abiodun Olatunji has advised the Federal Government to exercise caution regarding the potential unilateral revocation of the 25-year concession for the Benin-Asaba Expressway.

The legal opinion follows an escalating dispute between the Federal Ministry of Works and the Benin-Asaba Expressway Concession Company Limited (BAECC) concerning the condition and reconstruction of the 125-kilometre highway. While the Ministry has alleged breaches of the concession agreement and proposed a mutual termination, Olatunji noted that a lack of evidence regarding abandonment, repudiation, or unreasonable delay in repairs may not justify unilateral revocation.

Olatunji’s review emphasized the distinction between emergency intervention measures and the formal termination of the concession. He noted that any action must adhere to the specific contractual safeguards within the agreement, including clauses related to default, cure periods, step-in rights, and compensation.