By Adesina Wahab
An activist, Rev. David Ugolor, has alleged that documents obtained from the Corporate Affairs Commission (CAC) show that the company handling the concession of the Benin-Asaba Expressway is owned by two individuals, a Nigerian and a Mauritanian national.
Ugolor said the Nigerian shareholder holds a 95 per cent stake in Benin-Asaba Expressway Concession Company (BAECC), while the Mauritanian national holds the remaining five per cent.
He disclosed this on Saturday night during a virtual meeting on the concession of the road organised by The Common Good Letter in collaboration with the Market Place of Ideas (MPOI).
The Common Good Letter is published by Ugolor, while Jefferson Uwoghiren is the administrator of MPOI.
Ugolor said the poor condition of the 125-kilometre road, which links the South-South and South-East regions, required urgent attention and greater scrutiny of the concession arrangement.
“Enough of lamentation on the terrible condition of the road which is a major link to the South-South and South-East regions of the country. It is time to speak truth to power,” he said.
He also alleged that an environmental impact assessment was not conducted before the project commenced, urging Nigerians to look beyond official statements and examine the details of the concession.
“The Minister of Works said the concessionaire has failed. But the agreement was made between the government and the concessionaire. Who are the concessionaires? Our findings at CAC showed that the company was registered like a special purpose vehicle for the project and it has two promoters — a Nigerian, who owns 95 per cent and a national of Mauritania who owns five per cent,” Ugolor said.
He said the Federal Executive Council approved the concession agreement on January 20, 2023, under a design, build and operate arrangement for 25 years.
According to him, about N228 billion was expected to be raised to finance the project, but the handling of the road had raised questions over the selection and capacity of the concessionaire.
He queried whether due diligence was conducted in selecting the concessionaires, whether the process was competitive and whether the investors had the requisite experience and capacity to execute the project.
“Was due diligence followed in selecting the concessionaires? Was the selection process competitive? What are the antecedents of the concessionaires? Have they handled such projects before? Are they competent?” he asked.
Ugolor noted that the project, which commenced in 2023, was expected to be completed in 2026, but said the Minister of Works, Dave Umahi, recently indicated that only about 40 per cent of the work had been completed.
He also questioned the reported financial involvement of the Federal Government in the project, saying the concessionaire was expected to raise the funds required for construction and recover its investment through tolling over the 25-year concession period.
Ugolor referenced a recent statement by Umahi that the ministry would stop bond payments to the company, arguing that the development raised questions about the financial structure of the concession.
“The concessionaires are the ones who are supposed to source for funds as they are expected to recoup their investment while managing the road for 25 years. They will build toll gates and collect money, why is the government involved again in the funding?” he asked.
He also claimed that the Edo State Government had committed about N1 billion to the project.
Ugolor urged the Federal Government to resolve the issues surrounding the concession and urgently rehabilitate the road because of its economic importance to the country.
He also called for greater openness and transparency in the handling of public infrastructure projects, stressing that Nigerians should be able to ascertain how public funds are utilised.
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