The Federal Government has removed bureaucratic hurdles that stalled private sector investment in major road projects, accelerating infrastructure development under a Public-Private Partnership (PPP) framework.
Speaking on Arise TV, Minister of Finance Wale Edun reaffirmed President Bola Tinubu's commitment to addressing Nigeria's $100 billion annual infrastructure deficit by mobilizing private capital.
Recent approvals by the Federal Economic Council have allowed private investors to proceed with the Benin-Asaba Highway and the Lagos-Abeokuta Road under the Highway Development and Management Initiative (HDMI), which initially faced delays despite strong investor interest.
With Tinubu's intervention, the projects—part of a broader 5,000-kilometre road concession plan—are moving forward. Investors have secured long-term domestic financing to construct, toll, and maintain these roads, significantly improving transport efficiency. Edun stated that travel times on the Benin-Asaba corridor will be reduced from four hours to just one.
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The HDMI was launched in 2021, attracting 75 bidders, with 18 prequalified by early 2022. By May 2023, concession agreements for nine pilot roads had been signed with six concessionaires, including Africa Plus Partners Nigeria Limited (APPNL) for the Benin-Asaba and Lagos-Abeokuta expressways.
Other key concessionaires include:
AFC/Mota-Engil Consortium: Shagamu-Benin Highway (258 km), Lagos-Badagry-Seme Border Road (79 km).
China Harbour Engineering Company Ltd (CHEC): Abuja-Keffi-Akwanga-Lafia-Makurdi Highway (175.9 km).
Dafac Consortium: Kano-Shuari Highway (100 km).
The programme has gained traction with investments from Nigerian pension fund managers, reflecting growing domestic interest in infrastructure as an asset class.
While regulatory frameworks such as the Infrastructure Concession Regulatory Commission (ICRC) have been in place since 2008, recent reforms aim to enhance transparency and efficiency. However, investors remain cautious, closely monitoring execution and regulatory oversight.
These projects will serve as a test case for Nigeria's ability to leverage private capital for infrastructure development, with potential long-term benefits for economic growth.
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