FG reviews road concessions, repairs on Kaduna-Abuja expressway
The Federal Government has initiated a comprehensive examination of road concession agreements that were signed in 2023 under the Highway Development and Management Initiative, aiming to align these agreements with the infrastructure agenda of the current administration.During the conclusion of a two-day stakeholders’ meeting in Abuja on July 22, Minister of Works, Senator David Umahi, stated that this review was crucial due to several deficiencies found in the original agreements and the proposed amendments made on May 23, 2023.
The minister highlighted that the current concession agreements contain significant flaws, especially regarding performance guarantees, toll structures, and project scope, which are inconsistent with the policy direction of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
“We’ve identified substantial gaps in the agreements that need to be resolved to avert potential legal disputes and ensure we obtain true value for our investment,” Umahi noted. “This effort is centered on transparency, effectiveness, and aligning our public-private partnerships with the administration's vision.”
Eight major highway projects are presently undergoing review. These projects include Benin–Asaba Road (125 km), Abuja–Lokoja Road (195 km), Onitsha–Owerri–Aba Road (161.2 km), Shagamu–Benin Road (258 km), Kano–Shuari Road (100 km), Enugu–Port Harcourt Road (200 km), Lagos–Ota–Abeokuta Road (80 km), and Lagos–Badagry–Seme Border Road (79 km).
The concessions can last up to 25 years, with some contractors reportedly starting work before finalizing agreements.
Umahi also expressed concerns regarding the involvement of independent engineers in overseeing project execution and emphasized the importance of avoiding issues related to Put-Call Option Agreements and competing routes.
“No contractor currently in place will be removed unless the new concessionaire meets all legal and financial requirements, including mutual contract termination and proof of capability,” he mentioned.
A significant policy change introduced in the review requires the mandatory inclusion of user-friendly amenities such as CCTV cameras, solar-powered streetlights, and highway rest areas.
“These features are now obligatory—no longer optional. We must focus on road safety and enhancing the user experience,” noted the minister.
Also in attendance at the sessions were the Minister of State for Works, Hon. Bello Muhammad Goronyo, and delegates from essential government agencies, including the Ministries of Justice and Finance, Debt Management Office, Bureau of Public Procurement, Infrastructure Concession Regulatory Commission, and Bureau of Public Enterprises.
Goronyo lauded the review, calling it “a vital step towards sustainable infrastructure development characterized by transparency and adherence to due process.”
Representatives from concessionaire companies—including Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engil, Balosh Integrated Services, LIB Concession, and Greg Jane International—participated in the review and committed to supporting the reforms.
Revised contract clauses will be sent to the pertinent Ministries, Departments, and Agencies within seven days, while concessionaires must provide feedback and highlight any contentious clauses for clarification.
In the meantime, the Federal Government has begun emergency repairs on a damaged portion of the Kaduna–Abuja Expressway following significant public complaints regarding traffic delays.
During a tour of the affected area, Minister of State for Works, Hon. Goronyo, assured the public of prompt remedial measures. “This route is crucial for the economy of northern Nigeria. The President has mandated immediate action, and contractors are being deployed without hesitation,” he stated.
Goronyo reaffirmed the government’s dedication to creating lasting and safe road networks throughout the nation despite budget limitations. “We appreciate the public’s patience. Relief is on the way, and we will provide roads that Nigerians can depend on,” he concluded.
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