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25-year concession limits FG’s direct action on Benin-Onitsha Road, Says Umahi

Minister of Works, David Umahi, explains that a 25-year concession agreement limits the Federal Government’s direct action on the Benin-Onitsha Road. Read More: https://punchng.com/25-year-concession-limits-fgs-direct-action-on-benin-onitsha-road-says-umahi/

25-year concession limits FG’s direct action on Benin-Onitsha Road, Says Umahi

The Federal Government (FG) faces limitations in directly intervening on the Benin-Onitsha road due to a 25-year concession agreement, Minister of Works David Umahi revealed. Umahi clarified a previous statement by the ministry, emphasizing that the government's ability to terminate the contract and award the project to another contractor is restricted by the concession's terms.

The FG is actively engaging the concessionaire to expedite the roadwork, while strictly adhering to contractual and legal bounds. Umahi stressed that the road's poor condition predates the current administration, which inherited thousands of kilometers of deteriorated roads and stalled projects. He defended the government's handling of the Benin-Onitsha corridor, arguing that legitimate concerns should not be distorted into a narrative that ignores historical context and contractual obligations.

The minister emphasized that government action must follow due process and consider legal and financial consequences, including potential litigation and claims against the government. He also refuted claims of neglect in infrastructure development in the South-East, highlighting several major projects currently underway or in advanced stages in the region.

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