FG Terminates Benin-Sapele-Warri Road Contract With Levante

The Federal Government through its Minister of Works, David Umahi, has ordered the immediate termination of the contract awarded to Levant Construction Ltd for failing to deliver on the Benin–Sapele–Warri Road project.

The project is a major highway reconstruction funded under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

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Speaking in Abuja after a high-level meeting with contractors handling various sections of the road, Geld Construction Ltd and SKECC Nigeria Ltd, Umahi expressed displeasure over Levant’s persistent delays and abandonment of the project site despite several warnings and a final termination notice.

According to a statement signed by his media aide, Orji Uchenna, on Wednesday, the minister disclosed that despite the intervention by the Edo State Government on the worst sections of the road, Levant failed to mobilise to its portion of the site, leaving critical areas unattended.

“We even begged the Edo State Governor to fix the worst-hit parts while Levant handled the remaining. While the governor delivered on his 23km stretch for N35bn, Levant abandoned its section,” Umahi said.

“They received multiple warning letters, including a final notice, but chose not to return to the site.”

Umahi directed the Permanent Secretary to finalise the contract termination, initiate a joint measurement for completed works, and write to the company’s bank for the recovery of the Advance Payment Guarantee.

He warned that failure to refund the public funds could lead to prosecution by the Economic and Financial Crimes Commission. In contrast to Levant’s performance, the minister praised Geld and SKECC for agreeing to return to the site following renegotiations.

He said a project review has been approved to accommodate inflationary pressures, including the rising cost of asphalt, now pegged at N30,000 per square metre from a previous N9,000.

“I’m pleased with Geld’s commitment. For their other job on the Lokoja-Abuja road, we’ve agreed to a price review. The same applies to the Itoki–Ikorodu road. We are happy to see movement again,” he said.

He also lauded the efforts of Delta State Governor, Sheriff Oborevwori, and Edo State Governor, Monday Okpebholo, for stepping in to fund critical sections of the federal road. “We are grateful. These governors are doing very beautiful work,” he said.

Reacting to recent claims by some Northern groups accusing the President Bola Tinubu administration of favouring the South in road projects, Umahi described the allegations as “malicious and uncharitable.”

He stressed that project distribution under Tinubu’s Renewed Hope Agenda has been fair, inclusive, and based on inherited commitments and current needs.

“In this ministry, we don’t count regions. We follow the President’s example—he inherited projects and chose to continue them irrespective of location,” Umahi said, citing the Abuja–Kaduna–Zaria–Kano road project as a case in point.

He noted that under the NNPC Tax Credit Scheme alone, Niger State accounts for 26 per cent of the project portfolio, while the South-West and South-East combined barely get 9 per cent.

In his detailed response, Umahi listed several ongoing projects in the North, including: Abuja–Kaduna–Zaria–Kano road (Sections I & III) worth N252bn, with 30 per cent already paid.

“Section II of the same highway, 164km long, valued at N525bn, with another 30 per cent (N152bn) already disbursed. Sokoto–Zamfara–Katsina–Kaduna 750km road at N825bn, started under President Tinubu.

“There are Dangote-backed Tax Credit projects in Borno, including 49km in Bama and 52km in Dikwa. The N958bn dual carriageway project in Kebbi, with a second phase heading to FEC for approval. The 439km Akwanga–Jos–Bauchi–Gombe superhighway is being redesigned to a six-lane concrete pavement on Tinubu’s directive.

He added that under the Renewed Hope legacy projects, the North is receiving 52 per cent of the investments, while the South gets 48 per cent.

On the controversial Lagos–Calabar Coastal Highway, Umahi said the project is not designed to favour any region, explaining that comparable investments are being made in the North with the same quality and cost standards.

“For instance, the Kebbi section alone, with just one carriageway, is costing about N958bn. When the second lane is approved, that’s nearly N2tn—comparable to Lagos-Calabar segments,” he noted.

Addressing criticisms on the slow pace of work on the Eleme–Onne axis of the East–West Road, Umahi said the contractor, RCC, has since improved performance after initial issues. He clarified that asphalt work being done on a completed lane was to maintain traffic flow around flyover sections.

“Let the critics go and verify. We’ve done one carriageway. Where asphalt is being reapplied, it’s around flyover intersections for smooth movement,” he explained.

The minister reaffirmed his commitment to restoring public confidence in Nigeria’s road infrastructure, saying, “We want Nigerians to feel the impact of governance. President Tinubu is investing heavily in roads—North, South, East, and West—because he understands the economy runs on infrastructure. I have never seen such a unique President.”

PUNCH