The Federal Government is in advanced talks with private sector concessionaires to unlock over ₦1.5 trillion in investments aimed at reconstructing and managing nine key highways across Nigeria under long-term Public-Private Partnership (PPP) agreements.
This development was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, after a high-level meeting with the concessionaires in Abuja on Wednesday.
The initiative is part of the Federal Government’s Highway Development and Management Initiative (HDMI), launched in 2021, which seeks to leverage private capital and expertise to improve and maintain the country’s road infrastructure.
Edun said the concessionaires are prepared to move forward with the projects but have been held back by a few outstanding administrative bottlenecks, which are now being addressed.
“We met the concessionaires who have virtually concluded all agreement arrangements for nine major highways. They are ready to finance, rebuild, and manage these roads under 25-year concession agreements, recovering their investments through tolling fees,” Edun stated.
He emphasized that the projects, spanning nearly 900 kilometers, will fill critical funding gaps in the national budget and offer a sustainable model for infrastructure development. “This private sector-driven approach will ensure that major roads are not only rebuilt but also properly maintained over time,” he said.
Minister of Works, Mr. David Umahi, also participated virtually in the meeting from Lagos, where he is currently inspecting ongoing work on the Lagos-Calabar Coastal Highway. According to Edun, Umahi is expected to return to Abuja by Tuesday to finalize outstanding issues and sign the necessary agreements.
The process has already begun with the Benin–Asaba Highway, a 125-kilometer corridor which is being transformed into a 10-lane expressway. The concession and addendum agreements for the project have been signed, and the Ministry of Works has handed the site over to the concessionaire, who has commenced preliminary reconstruction work.
Once completed, the project is expected to reduce travel time between Benin and Asaba from four hours to one hour, significantly enhancing productivity, trade, and regional connectivity.
The HDMI initially identified 12 highways for concession, covering approximately 1,963 kilometers. These include high-traffic routes such as 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 programme is projected to generate over 50,000 direct jobs and 200,000 indirect jobs, contributing significantly to economic growth and infrastructure development across Nigeria.
As the government works to resolve the final hurdles, construction on additional highways under the HDMI is expected to commence in the coming months.
