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The Federal Government of Nigeria is revisiting the project parameters for the Benin-Asaba and Lagos-Abeokuta road corridors, initially negotiated in 2022 with Messrs. Africa Plus Partners Nigeria Ltd (APPNL), to adapt to current economic realities. David Umahi, the Minister of Works, announced this strategic move during discussions with the Public-Private Partnership (PPP) unit of the ministry and representatives from APPNL in Abuja.
This review aims to bolster the quality and management of road infrastructure developed under the Highway Development and Management Initiative (HDMI), a PPP model. It seeks to ensure that completed projects are utilized efficiently by road users, amid concerns over inflation, fluctuating exchange rates, and a decline in highway traffic following petrol price hikes.
Umahi emphasized the government’s commitment to quality and efficiency in road project delivery and negotiations. The revised parameters will set a precedent for all future contracts under the Federal Government’s partnership with concessionaires. Key focus areas include the requirement for concessionaires to complete 100 percent of one carriageway before initiating tolling operations and aligning business plans with the nation’s socio-economic dynamics.
Moreover, the minister outlined that tolling agreements must adhere to federal laws, with strict compliance to standard contract conditions and market price alignments. Project designs are to follow the Federal Ministry of Works’ specifications, allowing investors to enhance but not alter the initial plans. Additionally, construction timelines, variations, and traffic counts are to be rigorously managed, with provisions for public sensitization on tolling programs and stringent completion deadlines to avoid contract terminations.
