FG Reviews Road Concession Agreements to Boost Transparency, Avert Litigation
The Federal Government of Nigeria has launched a comprehensive review of road concession agreements signed in 2023 under the Highway Development and Management Initiative (HDMI) to ensure transparency, accountability, and value-for-money in Public-Private Partnership (PPP) road projects.
The review, announced on Wednesday, July 23, 2025, follows a two-day stakeholders’ meeting convened by Minister of Works Senator David Umahi, which concluded on July 22, 2025, in Abuja. The initiative aims to address flaws in existing contracts and align them with the Tinubu administration’s policy reforms, while emergency repairs begin on the critical Kaduna-Abuja Expressway.
The review targets eight major road corridors under the HDMI: Benin-Asaba (125 km, Route 1), Abuja-Lokoja (195 km, Route 2), Onitsha-Owerri-Aba (161.2 km, Route 3), Shagamu-Benin (258 km, Route 4), Kano-Shuari (100 km, Route 5), Enugu-Port Harcourt (200 km, Route 6), Lagos-Ota-Abeokuta (80 km, Route 7), and Lagos-Badagry-Seme Border (79 km, Route 8).
Umahi identified critical flaws in the original agreements and addenda signed on May 23, 2023, including issues with the Put-Call Option Agreement, performance security guarantees, encumbrances on project sites, and tolling structures. He stated, “We must ensure that these agreements reflect our current policy direction and the innovative drive of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Contractors were already on some of these project sites even before concessionaires signed contracts. This must be harmonised.”
The minister introduced compulsory addenda requiring concessionaires to provide CCTV cameras, solar-powered streetlights, rest areas, and other facilities to enhance safety and user comfort. “These are no longer optional. The goal is to improve travel safety and comfort for Nigerians on these roads,” Umahi emphasized.
He also set strict conditions for concessionaires, including mutual termination of prior contractor agreements, proof of funding capacity, payment of outstanding debts, and demonstration of technical and financial competence. “The Federal Ministry of Works will not disengage any existing contractor from a project site unless the concessionaire has fully met the necessary conditions precedent,” he warned.
Stakeholders’ Commitment to Reform
The meeting included key figures such as Minister of State for Works Rt. Hon. Bello Muhammad Goronyo, Permanent Secretary Dr. Emanso U. Okop, and representatives from the Federal Ministries of Justice and Finance, Debt Management Office, Bureau of Public Procurement, Infrastructure Concession Regulatory Commission, and Bureau of Public Enterprises.
Concessionaires from Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engine, Morta-Engil, Balosh Integrated Services, LIB Concession, and Greg Jane Int. Limited attended, pledging support for mutually beneficial reforms. Goronyo praised Umahi’s approach, stating, “His dedication to due process and transparency in PPP engagements is commendable and sets the tone for meaningful reform.”
Umahi announced that revised clauses would be circulated within seven days for final deliberation, urging concessionaires to indicate acceptance or clarify concerns.
Emergency Repairs on Kaduna-Abuja Expressway
In a related development, the government has initiated emergency repairs on a 500-meter failed section of the Kaduna-Abuja Expressway near the Federal Cooperative College at Abuja Junction in Kaduna, following public outcry over travel delays.
Goronyo, who inspected the site on President Tinubu’s directive, described the road as a “lifeline for trade and mobility in Northern Nigeria.” He stated, “This road is not just a route; it is a vital link in our national economy. Mr. President has made it clear that no Nigerian should suffer undue hardship on account of bad roads.”
Goronyo assured immediate action, saying, “The Honourable Minister of Works has directed the immediate commencement of remedial works on this failed stretch. We are not waiting for another rainy season or another round of complaints. We are acting now.” The intervention aligns with the Renewed Hope Agenda to enhance road infrastructure, national connectivity, and socio-economic growth, despite fiscal constraints. “While funding constraints remain a challenge, the Renewed Hope administration is prioritising key infrastructure projects that directly affect the lives of ordinary Nigerians,” Goronyo added, expressing gratitude to motorists for their patience.
The review of HDMI agreements marks a pivotal shift in Nigeria’s PPP approach, aiming to resolve implementation challenges and boost private sector investment in road infrastructure.
The emergency repairs on the Kaduna-Abuja Expressway underscore the government’s commitment to addressing critical infrastructure failures. As the Tinubu administration pushes for transparency and innovation, these moves could reshape Nigeria’s road sector, but stakeholder consensus remains key. What are your thoughts on these reforms? Share your views in the comments
