Nigeria: Govt to Conclude N1.5trn Road Concession Project
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the federal government will soon conclude the N1.5 trillion road concession project.
Edun made the statement during a meeting with some private sector investors in Abuja.
He said that the government was on the verge of finalising the landmark N1.5 trillion road concession project, launched in 2021 under the Highway Development and Management Initiative (HDMI).
The minister said that the initiative aimed to involve private sector partners in the reconstruction and management of nine major highways across the country, spanning approximately 900 kilometers.
He said that the partners had almost completed all arrangements for the highways, which they would finance, rebuild, and maintain under 25 years concession agreements.
Edun said that the concessionaires were 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 for the kicking off construction of these roads,” he said.
Edun said that the substantial private sector investment would bridge budgetary gaps.
He added that it would also allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.
By Daily Trust.
