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Nigerian government prepares for the concession of 12 highways

Last Updated on 08th January 2024

Under the first phase of the Highway Development Management Initiative, 75 companies are bidding for 12 federal highways to be concessioned (HDMI). Mrs Abimbola Asein, Head of the Federal Ministry of Works and Housing's Public Private Partnership (PPP) Unit, revealed this at the opening of a Request For Qualification (RFQ) bid in Abuja. 


According to the Nigerian News Agency (NAN), the HDMI was established by the Federal Government to construct and maintain the federal road network through long-term private-sector investment.


The highways are: -

  • The 270-kilometer route connecting Lokoja and Benin, which will be the longest of these.
  • The 258-kilometer Shagamu-Benin road.
  • The 200-kilometer Enugu-Port Harcourt road.
  • The 193-kilometer Abuja-Lokoja road.
  • The 161-kilometer road connecting Onitsha, Owerri, and Aba.
  • The 150-kilometer Kano-Katsina road.
  • The 129-kilometer Ilorin-Jebba road.
  • The 125-kilometer Benin-Asaba.
  • The 122-kilometer Abuja-Keffi-Akwanga road.
  • The 100-kilometer Kano-Shuari road.
  • The 96-kilometer Posiskum-Damatur road.
  • The 80-kilometer Lagos-Otta-Abeokuta road.
  • And the 79-kilometer Lagos-Badagry-Seme road.


Five major road development projects would assist Nigeria's Federal Capital Territory (FCT). The $68.5 million project will be carried out in the FCT area around Abuja, Nigeria's capital. A new parking park and access road for a rail facility, as well as new roads on Bwari and Gwagwalada, are all part of the project.


Meanwhile, Delta State officials have set aside $42 million for 15 separate road and bridge projects. These will include the construction and improvement of new local roads, as well as the reconstruction of a major bridge link.


According to Asein, the opening of the application portal for the bid would ensure that credible concessionaires were chosen for the development and operation of federal highways through long-term private sector investment.


In his remarks, Babangida Husseini, the ministry's Permanent Secretary, stated that the federal government was dedicated to a transparent, fair, and competitive procurement procedure throughout the HDMI Project Life Cycle.


He was confident that everyone who expressed interest at the RFQ stage would meet the fundamental pre-qualification criteria and be qualified for the RFP stage.


These highways will be maintained by private entities. The agreement would allow private corporations to install toll gates on the 12 motorways, collect revenue, and repair the roads on a regular basis.


According to the ministry, the roads are part of the HDMI's pilot phase, which will be operated by private sector investors under a Value-Added Concession, or VAC, structure.


In addition to the Value-Added Concession, or VAC, the FMWH plans to employ a vehicle called the Unbundled Assets Approvals Initiative, or UAAI, to maximize the utilization of its assets on the motorways.


The ministry intends to provide approvals/permits to individuals to build, operate, and/or maintain assets on the right of way under this category.


According to the government, both the VAC and the UAAI aim to offer adequate highway services by developing revenue-generating assets along the roadway.


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