FG begins talks to unlock N1.5tn road investments

• Published On: 01 May 2025 at 07:10

The Federal Government has launched high-level talks with commercial concessionaires who are willing to invest more than N1.5 trillion in Nigeria's road infrastructure but whose projects have stagnated due to unsolved administrative issues.

On Wednesday in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; 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 discuss the concerns that are delaying the start of major highway projects.

Dave Umahi, Minister of Works, who attended the meeting remotely, told the concessionaires that the Federal Government is committed to resolving all outstanding concerns so that project sites can be mobilised immediately.

During the conference, Edun announced that the government had reached agreements for the reconstruction and management of nine key roadways totalling around 900 km.

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," according to Edun.

Edun stated that, while most legal and financial preparations had been concluded, significant administrative impediments were still preventing the start of construction, prompting the meeting with the investors to address and resolve the delays.

Edun continued: "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 emphasised the Tinubu administration's commitment to creating a conducive environment for private investment, emphasising that highway development is critical to the government's goal for increasing productivity, creating jobs, and alleviating poverty.

The Finance Minister cited the Benin-Asaba Highway as a showcase project for the effort.

The 125-kilometer route has already been handed over to the concessionaire, and building is under underway. Once completed, the project is projected to reduce travel time between Benin and Asaba from four to one hour.

One of the concessionaires, Shoreline's Kola Karim, demanded the government to provide updated, enforceable documentation stating takeoff and handover dates.

He also urged for the signing of an addendum to the original agreements that would allow tolling on completed sections of the highways while construction on the remaining parts continued.

"Each concessionaire has unique challenges that need to be addressed," he said.

Although the conference ended without final decisions, Edun said that a follow-up session has been arranged for Tuesday, during which all parties, including the Minister of Works, are expected to resolve the unresolved concerns.

In his remarks, Minister of Budget and Economic Planning described the conference as a watershed moment and assured investors of the government's support.

"Your funders require assurance that reforms are in place and will be maintained. "We are here to give you that assurance," he stated.