The Federal Government has officially terminated the N35 billion contract awarded for Section 1 (Benin-Imasabor) of the Benin-Sapele-Warri highway project, citing gross non-performance by the contractor, Levant Construction Limited. The government is also considering forwarding the matter to the Economic and Financial Crimes Commission (EFCC) for further investigation and possible prosecution.
The road project is one of several being executed under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, a scheme designed to encourage private sector participation in infrastructure development by allowing companies to claim tax credits for executing major public infrastructure works.
Nigeria’s Minister of Works, Senator David Umahi, announced the decision to terminate the contract following a high-level meeting in Abuja with the chief executives of GELD Construction Limited and SKECC Nigeria Limited, both of whom are working on other sections of the same highway. During the meeting, Umahi criticised Levant Construction for abandoning the project site and failing to meet up with the contractual expectations, despite several interventions and warnings from the ministry.
According to the minister, Levant Construction was responsible for the most critical portion of the three-section highway, yet failed to mobilise properly to the site. He revealed that the Federal Ministry of Works had even appealed to the Governor of Edo State, Mr. Godwin Obaseki, to assist in rehabilitating the worst parts of the road to ease the suffering of motorists.
“We have three sections there. We have the Levant section. Unfortunately, Levant has not lived up to expectations. We even had to intervene and beg the Governor of Edo State to get the worst sections of that route done. We divided the worst sections into two and told Levant to concentrate on one part. While the Governor of Edo State intervened, which I think is about 23 kilometers for N35 billion, the governor’s section is going very well. Levant has since left the site,” Umahi said in an official statement.
He added that after issuing several warning letters to the contractor, the ministry eventually served Levant Construction with a final termination notice. However, the company failed to comply with the standard 14-day period for remobilisation to site, which, according to the minister, is a contractual obligation under such notices.
“When a termination notice is given to you, it is for you, within 14 days, to go back to the site and begin to do those things you were not doing. This time is for them to remobilise to the site and for them to work, but they did not respond,” Umahi said.
The minister has now directed the Permanent Secretary of the Ministry of Works to initiate the full termination process. This includes writing to the bank that guaranteed Levant Construction’s advance payment to demand a refund. Failure to secure this refund, he said, would result in the matter being escalated to the EFCC.
“I, therefore, direct the Permanent Secretary to get the job properly terminated and write them a letter for a joint measurement, and also to write to their bank to request repayment of the APG, failing which the matter would be taken to the EFCC,” the minister stated.
Industry observers have noted that this latest development underscores the Tinubu administration’s resolve to enforce performance in public contracts and uphold accountability in project delivery. Under the Renewed Hope Agenda, President Bola Ahmed Tinubu has repeatedly emphasised the importance of efficient infrastructure as a driver of economic growth and regional integration.
The Benin-Sapele-Warri highway is a critical transport route for the South-South and South-West zones, facilitating the movement of goods, commuters, and petroleum products across Nigeria’s oil-producing belt. The failure to deliver on the project has drawn public criticism, particularly as road users continue to suffer from severe traffic congestion, road accidents, and logistical disruptions due to the poor state of the highway.
The Infrastructure Tax Credit Scheme under which the contract was awarded has been touted as a game-changer in the government’s attempt to close Nigeria’s infrastructure gap. However, the non-performance of some contractors under the scheme has raised concerns about oversight and the selection process for project execution.
The Federal Ministry of Works has yet to announce a replacement contractor for the Benin-Imasabor section. However, ministry sources say discussions are underway to re-award the contract to a more competent firm under stricter performance terms.
This development also serves as a warning to other contractors executing government projects that non-compliance and failure to deliver will no longer be tolerated under the current administration.
