Wale Edun, minister of finance and coordinating minister of the economy, says the federal government will soon finalise the N1.5 trillion road concession project.
Edun spoke during a meeting with some private sector investors in Abuja on Wednesday.
He said the government was finally finalising the landmark N1.5 trillion road concession project, launched in 2021 under the highway development and management initiative (HDMI).
The minister said the initiative aimed to involve private sector partners in reconstructing and managing nine major highways spanning approximately 900 kilometres across the country.
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Edun said the partners had almost completed all highway arrangements, which they would finance, rebuild, and maintain under 25-year concession agreements.
He added that the concessionaires were expected to recoup their investments through tolling fees.
“We met the concessionaires who have virtually concluded all the agreement arrangements for nine roads and nine major highways, which they are contracting to refinance the rebuilding of and to recover their funds from tolling fees under 25-year or so agreements,” the minister said.
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“We ironed out the remaining administrative obstacles for the kicking off construction of these roads.”
Edun said the substantial private sector investment would bridge budgetary gaps.
He added that it would allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.
“Thereafter, it will be a question of signing the addendums and moving to the site,” he said.
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“As you know, the 125-kilometre Benin–Asaba Highway concession agreement has already been signed. The addendum has been signed.
“All arrangements have been finalised, in fact, the ministry of works have handed over the road to the concessionaires.
“They have already started the preliminary arrangements for reconstructing that road in place of a 10-lane highway.
“It is an investment, it’s a project and an initiative that will reduce the travel time between Benin and Asaba right up to the Niger Bridge.”
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‘BENIN-ASABA HIGHWAY WILL ENHANCE REGIONAL PRODUCTIVITY’
Edun said the Benin–Asaba Highway project, which has already commenced, is expected to reduce travel time between Benin and Asaba from four hours to one hour, significantly enhancing regional productivity and efficiency.
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He described the HDMI, launched in 2021, as a strategic programme by the federal government to attract private sector investment in improving Nigeria’s federal road network.
The minister said that the initiative seeks to address the challenges of inadequate funding and maintenance by leveraging public-private partnerships (PPP) to develop and manage road infrastructure.
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According to Edun, the initiative was projected to generate over 50,000 direct and 200,000 indirect jobs, contributing significantly to the country’s economic growth and development.
On his part, David Umahi, minister of works, reassured the private sector partners on the HDMI of the federal government’s commitment.
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Umahi said everything would be done to resolve the contending issues.
One of the concessionaires, Kola Karim, representing Shoreline, emphasised the need for proper and enforceable documents stipulating the takeoff and handover dates, which would attract investors to invest their funds.
Other private sector partners also requested that the addendum to the original agreement be signed to enable toll sections of the completed highways while work was in progress on other sections.
The partners noted that each concessionaire has unique challenges that should be addressed accordingly.
