FEC approves N437bn road projects, N173bn PPP concessions

Tinubu-at-FEC
Enugu State

• Projects to boost connectivity, trade, economic activities – Goronyo

From Juliana Taiwo-Obalonye, Abuja

The Federal Executive Council (FEC), presided over by President Bola Ahmed Tinubu, on Wednesday approved road construction and rehabilitation projects worth more than N437 billion across Ekiti, Ogun and Rivers states, alongside three private-sector infrastructure concessions valued at about N172.9 billion.

The Minister of State for Works, Muhammad Goronyo, disclosed the approvals while briefing State House correspondents after the FEC meeting at the State House, Abuja.

The road projects cover the reconstruction of the Ado-Ekiti–Iyin–Aramoko–Itawure–Osun State border road; rehabilitation of the Abeokuta–Iboro–Ilaro Road and construction of the Ilara–Iselu Road in Ogun State; the Phase II upgrade of a section of the East-West Road in Rivers State; and rehabilitation of the Ado-Ekiti–Afe Babalola University Road.

Goronyo said the approvals were aimed at improving connectivity, facilitating the movement of people and goods and supporting economic activities along major transport corridors.

The largest contract approved was the reconstruction of the Ado-Ekiti–Iyin–Aramoko–Itawure–Osun State border road, awarded to CBC Global Civil & Building Construction Nigeria Limited for N159.826 billion, inclusive of 7.5 per cent VAT.

The project has a completion period of 24 months.

In Ogun State, FEC approved variation and change orders for the rehabilitation of the Abeokuta–Iboro–Ilaro Road under Contract No. 8645.

The variation, awarded to Strabic Construction Limited for N54.118 billion, involves changing the pavement design from rigid pavement based on continuously reinforced concrete to asphalt or flexible pavement.

Council also approved the construction of the Ilara–Iselu Road, Phases II to V, in Ogun State, at a cost of N94.236 billion.

The contract was awarded to JRB Construction Company Limited and has a completion period of 24 months.

In Rivers State, the council ratified the award of the Phase II upgrade of the 15-kilometre East-West Road, Section III, covering the Port Harcourt (Eleme Junction)–Onne Port Junction corridor.

The project, awarded to RCC Nigeria Limited, is valued at N74.515 billion, inclusive of VAT, and is expected to be completed within nine months.

The corridor provides access to the Onne Port and major industrial, maritime and oil and gas facilities in the area.

FEC also approved the Phase II rehabilitation of the Ado-Ekiti–Afe Babalola University Road along the Ado-Ekiti–Iluomobi-Imesi/Ondo State border corridor.

The reviewed contract, awarded to S & M Nigeria Limited, is valued at N54.519 billion, inclusive of VAT.

Goronyo said the road projects were part of the Federal Government’s broader intervention in critical infrastructure.

N173bn private-sector concessions approved
In a separate decision, FEC approved three major infrastructure concessions under the Public-Private Partnership (PPP) framework, with the projects to be financed entirely by private-sector concessionaires.

The approved concessions cover the Suleja–Minna Road, Lagos–Ibadan Expressway and a greenfield trailer park at Aro-Ngwa in Abia State.

Goronyo said the initiative was designed to harness private capital and expertise for infrastructure development, operation and maintenance.

“In pursuit of the Federal Government’s policy of leveraging private-sector capital and expertise for the development, operation and maintenance of critical national infrastructure, the Ministry of Works packaged six PPP projects comprising the DFBOT/DFBOM concession of trailer parks and the O&M concession of highways,” he said.

According to him, three of the six projects required FEC approval because their costs exceeded the applicable approval threshold.

The first is the Design, Finance, Build, Operate and Maintain (DFBOM) concession of the 7.9-kilometre Dikko–Maje section of the Suleja–Minna Road.

The project, promoted by Graciatech Engineering Nigeria Limited, is valued at N56.752 billion and carries a 40-year concession period.

FEC also approved the Operation and Maintenance (O&M) concession of the Lagos–Ibadan Expressway in favour of LIB Concession Group.

The concession has an estimated value of N96.425 billion and a tenure of 25 years.

The third approval is the Design, Finance, Build, Operate and Transfer (DFBOT) concession for a greenfield trailer park at Aro-Ngwa in Abia State.

The project, promoted by Greg Jane International Limited, is valued at N19.703 billion and has a 50-year concession period.

The trailer park is expected to provide designated facilities for heavy-duty vehicles and help reduce the indiscriminate parking of trailers along major highways.

Goronyo said the three projects formed part of six PPP initiatives developed by the Works Ministry.

He recalled that FEC had, at its third meeting of 2026 on June 29, ratified the award of the Full Business Case and issuance of a Full Business Case Compliance Certificate for the concession of the Abuja–Kaduna–Kano Expressway to Aspect Concession Company Limited.

He said the latest approvals demonstrated the government’s increasing reliance on private-sector financing to complement public expenditure on infrastructure.

According to him, the approach would enable the government to mobilise additional capital for strategic infrastructure while assigning responsibility for construction, operation and maintenance to concessionaires under agreed contractual terms.

The approved projects cover some of Nigeria’s major economic corridors, including routes linking state capitals, commercial centres, ports, industrial zones and educational institutions.

The East-West Road section connecting Eleme Junction to Onne Port, for instance, serves a major industrial and maritime corridor, while the Lagos–Ibadan Expressway remains a critical route for the movement of people and goods between Lagos and the wider South-West.

Similarly, the Suleja–Minna corridor provides an important connection between the Federal Capital Territory and Niger State.

The approvals are part of the Tinubu administration’s broader infrastructure programme, which combines direct public investment with private-sector participation to accelerate the delivery, operation and maintenance of critical road infrastructure.

 

 

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Enugu State