The Benin-Asaba Expressway, a major infrastructure project in Nigeria, has become embroiled in controversy, sparking concerns about the country's ability to attract private investment in public infrastructure. The project, being delivered through a Public-Private Partnership (PPP), was approved by the Federal Executive Council in January 2023 and signed in May 2023. The concession agreement, structured as a Design, Finance, Build, Operate and Transfer arrangement, extends for 25 years.
The concessionaire, BAECC, is not simply a contractor hired to lay asphalt and leave; rather, it has rights, responsibilities, and long-term obligations for the road asset. This distinction is crucial in light of suggestions that another contractor could be brought onto portions of the concessioned corridor. The idea of involving another contractor may seem attractive, given the suffering of motorists and the government's desire for swift action. However, it raises complex questions about responsibility, guarantees, and accountability.
If another contractor reconstructs part of the concessioned highway, who assumes responsibility for that section? Who guarantees the work, pays for it, and maintains it? If the pavement subsequently fails, which company is accountable? These questions go to the heart of how Public-Private Partnerships work and are not technicalities designed to obstruct government. They highlight the importance of respecting the concession agreement and ensuring that accountability operates through established rules.
BAECC maintains that the concession remains in force and that it has not relinquished any part of the corridor. In this context, intervention by another contractor cannot simply disregard the existing contractual arrangement. While BAECC is not immune to scrutiny, government has a responsibility to demand that concessionaires meet their obligations. If milestones have been missed or engineering standards not achieved, corrective measures should be demanded, and urgent remedial action taken if motorists are suffering unnecessarily.
The importance of this issue extends far beyond BAECC, as Nigeria faces an enormous infrastructure financing gap, and private capital will have to play an increasingly important role. Private investors are cautious, asking fundamental questions about the validity of agreements, dispute resolution, and performance guarantees. The outcome of the Benin-Asaba Expressway controversy will be closely watched by banks, infrastructure funds, pension funds, and foreign investors.
The proper principle in this situation is reciprocity: government respects the concessionaire's contractual rights, while the concessionaire delivers its contractual obligations. Dialogue remains preferable to confrontation, and BAECC has acknowledged the difficulties experienced by motorists, citing substantial construction activity, billions of naira of private resources committed, and unusual persistent rainfall complicating earthworks.
The country has an opportunity to demonstrate that government can protect citizens while respecting contracts, and that private companies can be held accountable without investment agreements becoming disposable. The Benin-Asaba Expressway is carrying more than vehicles and commerce; it is carrying the measure of whether Nigeria can successfully mobilise private investment to deliver critical public infrastructure.
Key points
- Nigeria's credibility as a destination for private investment in public infrastructure is being tested amid controversy over the Benin-Asaba Expressway.
- The controversy highlights the importance of respecting concession agreements and ensuring accountability through established rules.
- The outcome will have implications for future privately financed infrastructure projects in Nigeria.
