The Federal Government has begun high-level discussions with private concessionaires willing to invest over N1.5tn in Nigeria’s road infrastructure, but who are yet to mobilise due to unresolved administrative issues.
At a meeting held on Wednesday in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, alongside the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, and the Director-General of the Infrastructure Concession Regulatory Commission, Dr Jobson Ewalefoh, met with representatives of concessionaire firms to address concerns delaying the commencement of work on major highway projects.
The Minister of Works, Dave Umahi, who joined the meeting virtually, assured the concessionaires that the Federal Government was committed to resolving all outstanding matters to facilitate immediate mobilisation to the site.
Speaking at the meeting, Edun disclosed that the government had finalised agreements for the reconstruction and management of nine major highways spanning approximately 900 kilometres.
These include the Lagos-Badagry-Seme Border, Shagamu-Benin, Lagos-Abeokuta, Abuja-Lokoja, Enugu-Port Harcourt-Owerri-Aba, and Potiskum-Damaturu-Kano-Zaria corridors.
“These road projects are valued at about N1.5tn and will be financed and executed by the private sector under a 25-year concession agreement, with cost recovery through tolling,” Edun said.
He noted that while most of the legal and financial arrangements had been concluded, some administrative issues were still delaying take-off, prompting the meeting with the investors.
Edun said, “It’s a substantial investment by the private sector, bridging budgetary gaps and taking over revenue-generating assets which they can manage, improve, and maintain over a long period.”
He reiterated that the Tinubu administration remained committed to creating an enabling environment for private investment, adding that highway development was a key part of the government’s strategy to boost productivity, create jobs, and reduce poverty.
The finance minister cited the Benin-Asaba Highway as a model project under the initiative.
The 125km road has already been handed over to the concessionaire, with reconstruction works underway. The project is expected to reduce travel time between Benin and Asaba from four hours to one hour.
One of the concessionaires, Mr Kola Karim of Shoreline, urged the government to provide updated, enforceable documentation specifying takeoff and handover dates.
He also requested the signing of an addendum to the original agreements to enable tolling on completed sections while work continues on other parts of the roads.
“Each concessionaire has unique challenges that need to be addressed,” Karim said.
Although the meeting ended without final resolutions, Edun disclosed that another session had been scheduled for Tuesday, where all parties, including the Minister of Works, are expected to finalise the outstanding issues.
Bagudu, in his remarks, described the meeting as a milestone, assuring the investors of the government’s support. “Your funders need confidence that reforms are in place and will be sustained. We are here to give you that assurance,” he said.
Edun also revealed that Nigeria’s economic reforms under President Bola Tinubu had received strong backing from the international community during recent engagements in Washington D.C., adding that the government’s economic recovery plan hinges heavily on private sector participation.
