The Federal Government has terminated its contract with Levant Construction Ltd over the reconstruction of the Benin-Sapele-Warri Road (Section 1: Benin-Imasabor) due to the company’s failure to meet project expectations.
Announcing the decision in Abuja, the Minister of Works, David Umahi, said the project was being executed under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. However, repeated warnings and a final termination notice failed to prompt the contractor back to site.
“We gave them several opportunities, including a termination warning which required them to return to site within 14 days. They ignored it,” Umahi stated during a briefing with ministry officials and executives from GELD Construction Ltd and SKECC Nigeria Ltd.
Umahi explained that due to Levant’s withdrawal, the Edo State Government had stepped in to rehabilitate a critical 23-kilometre section of the road at a cost of ₦35 billion, with commendable progress already recorded.
He directed the Permanent Secretary of the Ministry, Olufunso Adebiyi, to finalise the contract termination, initiate a joint measurement of the project, and write to the contractor’s bank to recover the Advance Payment Guarantee (APG). Failure to comply, he warned, would result in the case being handed over to the EFCC.
Positive Engagements with Other Contractors
Despite the setback, Umahi expressed satisfaction with SKECC Nigeria Ltd and GELD Construction Ltd, both of whom have agreed to return to their respective sections of the road and continue work.
“SKECC has a one-kilometre stretch where they began milling asphalt. Although the budget allocation from NNPC is exhausted, they’ve agreed to return to site and complete it,” Umahi said.
As for GELD Construction, the minister noted that adjustments would be made to the contract to reflect rising costs, particularly in asphalt pricing, which has jumped from ₦9,000 to over ₦30,000 per square meter. The firm also committed to resuming work on the Lokoja-Abuja and Itoki-Ikorodu roads.
Governors of Edo, Delta Commended
Umahi lauded the interventions of Governor Monday Okpebholo of Edo State and Governor Sheriff Oborevwori of Delta State for supporting the federal effort by undertaking sections of the road with their state resources.
“Governor Oborevwori is delivering three flyovers simultaneously—an impressive feat. We’ve also agreed that a 10-kilometre concrete section will be handled by a contractor from Delta State,” the minister said.
Addressing Regional Concerns
Reacting to claims that the ministry was favoring southern projects over the north, Umahi dismissed such narratives as divisive and inaccurate. He emphasized the equitable distribution of road projects across all six geopolitical zones under the Renewed Hope agenda of President Bola Ahmed Tinubu.
“For example, NNPC-funded tax credit projects show Niger State alone accounts for 26 per cent, compared to 5 per cent in the Southwest and 4 per cent in the Southeast. President Tinubu has continued all inherited projects without bias,” he explained.
The minister reiterated the commitment of the ministry to restoring public confidence in road infrastructure nationwide and affirmed that the Renewed Hope administration is delivering progress for all Nigerians, regardless of region.
“We must stop seeing roads as southern or northern. Nigerians travel and do business across regions. We are one country,” he said.
