The Federal Government has commenced a thorough review of road concession agreements signed in 2023 under the Highway Development and Management Initiative, with the aim of aligning them with the current administration’s infrastructure agenda.
Speaking in Abuja at the close of a two-day stakeholders’ meeting on July 22, Minister of Works, Senator David Umahi, said the review was necessary due to numerous lapses identified in the original documents and proposed amendments executed on May 23, 2023.
According to the minister, the existing concession agreements contain several flaws—particularly in areas such as performance guarantees, toll structures, and project scope—which no longer reflect the policy direction of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
“We’ve uncovered critical gaps in the agreements that must be addressed to prevent future legal disputes and ensure we get real value for money,” Umahi said. “This is about transparency, effectiveness, and aligning our public-private partnerships with the vision of this administration.”
Eight major highway projects are currently under review. These 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 span terms of up to 25 years, and some contractors reportedly began work before final agreements were reached.
Umahi also raised concerns over the role of independent engineers in monitoring project execution and stressed the need to avoid complications linked to Put-Call Option Agreements and the existence of competing routes.
“No existing contractor will be disengaged unless the new concessionaire fulfills all legal and financial obligations, including mutual contract termination and proof of capacity,” he added.
A major policy shift introduced during the review mandates the inclusion of user-friendly facilities such as CCTV cameras, solar-powered streetlights, and highway rest areas.
“These features are now compulsory—not optional. We must prioritise road safety and user experience,” the minister noted.
Also present at the sessions were the Minister of State for Works, Hon. Bello Muhammad Goronyo, and representatives from key government bodies, including the Ministries of Justice and Finance, Debt Management Office, Bureau of Public Procurement, Infrastructure Concession Regulatory Commission, and Bureau of Public Enterprises.
Goronyo praised the review, describing it as “a critical step towards sustainable infrastructure development rooted in transparency and due process.”
Representatives from concessionaire firms—including Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engil, Balosh Integrated Services, LIB Concession, and Greg Jane International—attended the review and pledged support for the reforms.
Revised contract clauses will be distributed to relevant Ministries, Departments, and Agencies within seven days, while concessionaires are expected to submit feedback and flag any contentious clauses for clarification.
Meanwhile, the Federal Government has launched emergency repairs on a damaged section of the Kaduna–Abuja Expressway following widespread public outcry over traffic disruptions.
During a visit to the affected site, Minister of State for Works, Hon. Goronyo, assured Nigerians of immediate remedial action. “This corridor is vital for northern Nigeria’s economy. The President has directed swift intervention, and contractors are being mobilised without delay,” he said.
Goronyo reaffirmed the government’s commitment to building durable and safe road networks across the country despite budget constraints. “We appreciate the public’s patience. Relief is coming, and we will deliver roads Nigerians can rely on,” he added.
