From Adanna Nnamani, Abuj
The federal government said it is on the verge of finalising the N1.5 trillion road concession project launched in 2021 under the Highway Development and Management Initiative (HDMI).
The initiative aims to involve private sector partners in the reconstruction and management of nine major highways across Nigeria, spanning approximately 900 kilometers.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced the development following a meeting with the concessionaires in Abuja on Wednesday.
He stated that the partners have nearly completed all agreement arrangements for the highways, which they will finance, rebuild, and maintain under 25-year concession agreements. The concessionaires are expected to recoup their investments through tolling fees.
“We met the concessionaires who have virtually concluded all the agreement arrangements for nine roads, 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. And we met them to iron out the remaining administrative obstacles to them kicking off construction of these roads,” Edun said.
He explained that this substantial private sector investment would bridge budgetary gaps and allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.
Edun noted that Minister of Works, Mr. David Umahi, participated in the discussions virtually, despite being in Lagos to showcase progress on the Lagos-Calabar Highway, adding that he (Umahi) is expected back in Abuja by Tuesday to finalize pending issues.
“Thereafter, it will be a question of signing the addendums and moving to the site. As you know, already the 125-kilometer Benin–Asaba Highway concession agreement has been signed. The addendum has been signed.
“All arrangements have been finalized. In fact, the Ministry of Works has handed over the road to the concessionaire and they have already started the preliminary arrangements for reconstruction of that road in place of a 10 lane highway. It’s 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,” Edun stated.
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 productivity and efficiency in the region.
Launched in 2021, the HDMI is a strategic programme by the Federal Government aimed at attracting private sector investment to improve Nigeria’s federal road network.
The initiative seeks to address the challenges of inadequate funding and maintenance by leveraging Public-Private Partnerships (PPP) to develop and manage road infrastructure.
Under the HDMI, 12 highways were initially selected for concession, covering a total of 1,963 kilometers. These roads include Benin–Asaba, Abuja–Lokoja, Kano–Katsina, Onitsha–Owerri–Aba, Shagamu–Benin, Abuja–Keffi–Akwanga, Kano–Shuari, Potiskum–Damaturu, Lokoja–Benin, Enugu–Port Harcourt, Ilorin–Jebba, Lagos–Ota–Abeokuta, and Lagos–Badagry–Seme. The initiative is projected to generate over 50,000 direct and 200,000 indirect jobs, contributing significantly to Nigeria’s economic growth and development.