In a bid to strengthen Nigeria’s road infrastructure development under Public-Private Partnerships, the Federal Government has initiated a comprehensive review of road concession agreements signed in 2023 under the Highway Development and Management Initiative (HDMI).
The review, announced by the Minister of Works, Senator David Umahi, aims to enhance transparency, ensure value for money, and avert future litigations linked to ambiguities in the original concession documents.
Speaking at the end of a two-day stakeholders’ meeting held in Abuja on July 22, Umahi said the review was necessary due to several lapses discovered in the agreements and proposed addenda executed on May 23, 2023.
He emphasized that the documents no longer aligned with the policy direction of the current administration.
“We have discovered critical flaws in the concession agreements, including issues around performance security, toll structure, and project scope. These must be harmonised to reflect the innovative drive of President Bola Ahmed Tinubu’s Renewed Hope Agenda,” the minister said.
The highway projects under review include eight major routes such as the 125 km Benin-Asaba Road, the 195 km Abuja-Lokoja Road, the 161.2 km Onitsha-Owerri-Aba Road, and the 258 km Shagamu-Benin Road. Others are the 100 km Kano-Shuari Road, 200 km Enugu-Port Harcourt Road, the 80 km Lagos-Ota-Abeokuta Road, and the 79 km Lagos-Badagry-Seme Border Road. Many of the roads have 25-year concession terms.
Umahi further noted that some contractors were already on-site before the concession agreements were formalized, making harmonisation imperative. He also raised concerns about the role of independent engineers and emphasized the need to avoid legal complications arising from Put-Call Option Agreements and the existence of competing or alternative routes.
“The ministry will not disengage any existing contractor unless the incoming concessionaire meets the conditions precedent—this includes paying off outstanding obligations, terminating prior contracts mutually, and demonstrating technical and financial capability,” Umahi stated.
A major policy shift introduced during the review is the mandatory inclusion of user-comfort facilities such as CCTV surveillance, solar-powered streetlights, and rest areas along the highways. According to Umahi, “These facilities are no longer optional; they are critical to enhancing road safety and user experience.”
Also present at the review sessions were the Minister of State for Works, Hon. Bello Muhammad Goronyo, and representatives from key government agencies including the Ministries of Justice and Finance, the Debt Management Office, Bureau of Public Procurement, Infrastructure Concession Regulatory Commission, and the Bureau of Public Enterprises.
Goronyo praised the review effort, stating, “Senator Umahi’s dedication to due process and transparency in our PPP engagements is commendable. This approach is key to achieving sustainable infrastructure growth.”
Concessionaires from firms such as Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engil, Balosh Integrated Services, LIB Concession, and Greg Jane International were also in attendance and pledged support for the reforms.
To ensure swift progress, the revised contract clauses will be shared with heads of relevant MDAs within seven days for final deliberation. Concessionaires have also been directed to submit their feedback and indicate any grey areas that require further clarification.
Meanwhile, the Federal Government has begun emergency repairs on a failed section of the Kaduna-Abuja Expressway following heavy public complaints over worsening traffic delays. The Minister of State for Works, Hon. Goronyo, who inspected the site, assured the public of immediate intervention.
“This road is critical to trade and movement across northern Nigeria. The President has directed swift action to address the failure, and contractors will be deployed without delay,” Goronyo said.
He reaffirmed the administration’s commitment to delivering high-quality, motorable roads across the country despite fiscal limitations. “We thank Nigerians for their patience. Help is on the way, and we are determined to ensure a better travel experience for all,” he added.