Olatunji Warns FG Against Unilateral Concession Revocation

Abiodun Olatunji, a Senior Advocate of Nigeria, warned the federal government against the unilateral revocation of the 25-year concession agreement for the Benin-Asaba Expressway. Speaking in Lagos, he reviewed the ongoing dispute between the Federal Ministry of Works and the Benin-Asaba Expressway Concession Company Limited (BAECC).

Olatunji stated that the condition of the highway and current repair activities do not provide sufficient grounds for terminating the concession. He clarified that the minister of works lacks the authority to revoke the concession without following the contract's terms, which include provisions for emergency interventions.

He noted that while public safety concerns could justify urgent action, such measures should not equate to a permanent termination of the concession. Olatunji emphasized that public-interest considerations alone do not justify contract termination, especially when the agreement outlines specific procedures for addressing defaults and compensation.

The legal opinion arises amid ongoing disputes regarding the highway's condition and reconstruction efforts.