AEC Unity says $4bn Abuja-Lagos highway project awaiting FEC approval

The AEC Unity Network Limited says it has completed the initial stages of designs and studies for the 470-kilometre Abuja-Lagos greenfield super highway project.

Speaking during a press conference on Tuesday, Kenny Martins, chairman of the construction company, said AEC is now awaiting approval from the federal executive council (FEC) to commence construction work.

He noted that once completed, the road will allow commuters to travel from Lagos to Abuja in “four hours”.

Martins said the project is estimated to cost between $4 billion and $5 billion, and is expected to be delivered within four years.

“With the support and cooperation of our advisors, consultants and other stakeholders, we can say without being immodest that we have concluded the preliminary aspects of the project designs, studies and approvals,” he said.

He added that the company is ready to begin construction “as soon as we receive FEC approval for the project take off, and the flagging off of the project by the president and commander-in-chief”.

“We have brought our financiers, advisors, and consultants to this event to demonstrate to everyone our readiness, ability and capability as well as our willingness to execute the project and provide for our country the nearest and best link by road between the federal capital, Abuja and Lagos,” Martins said.

“The superhighway will also facilitate easier and cheaper means of commuting by road between the two great cities to the glory of God and the benefit of our countrymen and women.

“The superhighway will be strategic in several ways, because it will not only open up the villages through which the super highway will pass, it will also provide a much more convenient alternative for those who are only travelling to any of the states through which the super highway passes, which include, Lagos, Ogun, Oyo, Osun, Ekiti, Kwara, Kogi, Niger and Abuja.”

Martins also unveiled plans to construct a spur along the superhighway in order to connect travellers heading to Ondo state, subject to future approvals.

“We are already in talks with the government of Niger State to construct a Spur in Niger State to link the Baro Port to increase its viability,” he added.

‘PROJECT TO BE EXECUTED WITHOUT SOVEREIGN GUARANTEE’

Martins explained that when discussions around the project began six years ago under the previous administration, the initial funding model required the federal government to provide a sovereign guarantee for a significant portion of the financing.

However, due to the country’s already high foreign debt exposure, he said this option was ruled out.

Instead, Martins said, by mutual agreement with the federal government, “we opted to execute the project without the usual sovereign guarantee but a hybrid of guarantees that would enable our financiers to have the confidence that their funds will not be in any danger whatsoever”.

Elizabeth Ebi, group managing director of Futureview Financial Services Limited, serving as financial advisor and co-fund arranger, said the project is “ready to go” once it receives approvals from FEC and the Infrastructure Concession Regulatory Commission (ICRC).

Also speaking, Gbadebo Adenrele, managing director (MD), said the company played a key role in facilitating access to funding.

In January, the company reaffirmed its status as the officially recognised concessionaire for the super highway project and high-speed train projects.