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Home » FG Cancels Benin–Warri Highway Contract, Demands Refund from Contractor
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FG Cancels Benin–Warri Highway Contract, Demands Refund from Contractor

AdminBy Admin06/18/2025No Comments4 Mins Read
Minister of Works, David-Umahi
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In a decisive move to address stalled infrastructure projects, Nigeria’s Minister of Works, David Umahi, has officially terminated the contract awarded to Levant Construction Limited for the reconstruction of the Benin–Sapele–Warri highway, citing abandonment and non-performance.

Speaking in Abuja following a review meeting with contractors managing different segments of the project, Umahi said Levant had ignored multiple warnings and failed to mobilise to its site, despite a final termination notice being issued.

The highway, one of southern Nigeria’s major federal roads, is being reconstructed under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. According to a statement from the minister’s media aide, Orji Uchenna, the Edo State Government had to step in to rehabilitate the most dilapidated sections of the road after Levant failed to act.

“We even appealed to the Edo State Governor to intervene on the worst-hit 23km stretch, which he completed at a cost of N35 billion. Levant, on the other hand, abandoned its own portion after receiving multiple warnings,” Umahi said.

The minister has now directed the Works Ministry’s Permanent Secretary to complete the contract termination process, conduct joint measurements for any completed work, and contact the company’s bank to recover funds from the Advance Payment Guarantee. Umahi also warned that failure to refund the public funds could result in prosecution by the Economic and Financial Crimes Commission (EFCC).

While criticising Levant, Umahi praised contractors Geld and SKECC for their willingness to resume work after contract renegotiations. He also noted that an inflation-adjusted review of asphalt costs—now set at ₦30,000 per square metre, up from ₦9,000—has been approved to encourage timely completion of projects.

“I’m pleased with Geld’s commitment. We’ve agreed to revised terms on their other jobs, including the Lokoja–Abuja and Itoki–Ikorodu roads. Work is now moving again,” he said.

The minister expressed gratitude to Delta State Governor Sheriff Oborevwori and Edo State Governor Monday Okpebholo for funding critical portions of the federal road network.

In response to allegations from some northern advocacy groups claiming regional bias in infrastructure development, Umahi dismissed the claims as unfounded and divisive. He asserted that the Tinubu administration’s Renewed Hope Agenda distributes projects equitably across Nigeria, based on need and inherited obligations.

“People accusing the government of bias are being malicious. The President is continuing with projects he inherited, regardless of geography. In this ministry, we don’t count regions—we focus on the national good,” Umahi said.

He backed up his claims with data, revealing that under the NNPC Tax Credit Scheme, Niger State alone receives 26% of total allocations, while the entire South-West and South-East regions combined account for just 9%.

He listed multiple ongoing northern projects, including:

  • Abuja–Kaduna–Zaria–Kano highway (Section I & III): ₦252 billion, with 30% disbursed
  • Section II of the same road: 164km, valued at ₦525 billion, 30% already paid
  • Sokoto–Zamfara–Katsina–Kaduna road: 750km at ₦825 billion
  • NNPC-backed roads in Borno: 49km in Bama, 52km in Dikwa
  • Kebbi dual carriageway project: ₦958 billion for one lane; ₦2 trillion expected when second lane is approved
  • Akwanga–Jos–Bauchi–Gombe superhighway: 439km under redesign to a six-lane concrete road

According to Umahi, the North currently receives 52% of road investments under the Renewed Hope infrastructure plan, while the South receives 48%.

Addressing criticism of the Lagos–Calabar Coastal Highway, Umahi insisted that it is not regionally skewed and that its cost aligns with similar projects in the North, including the ₦2 trillion Kebbi dual carriageway.

Regarding delays on the Eleme–Onne axis of the East–West Road, Umahi said the contractor, RCC, has made notable improvements. He clarified that sections being resurfaced were completed earlier but required asphalt overlay near flyover junctions to maintain traffic flow.

“Critics should go and verify. We’ve completed one lane; asphalt overlay is only happening at flyover points for smoother traffic movement,” he explained.

Umahi reaffirmed his ministry’s dedication to restoring faith in public infrastructure delivery, noting that President Bola Tinubu’s leadership has made national road development a top priority.

“President Tinubu is investing across Nigeria—North, South, East, West. He knows that no economy grows without solid infrastructure. I’ve never worked with a more determined leader,” Umahi concluded.

 

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