In a sweeping move to overhaul Nigeria’s Public-Private Partnership (PPP) road framework, the Federal Government has launched a full-scale review of eight major road concession agreements signed in 2023 under the Highway Development and Management Initiative (HDMI).
Two years after the initial deals were inked, Minister of Works, Senator David Umahi, has raised the red flag over irregularities and ambiguities in the agreements, citing the need to realign them with the Tinubu administration’s Renewed Hope Agenda.
“We are not here to rubber-stamp flawed documents,” Umahi declared at a two-day stakeholders’ summit in Abuja, which concluded on July 22.
“These agreements must reflect present realities, technically, legally, and financially.”
The 2023 contracts covered critical national arteries:
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, 25-year concession)
Lagos-Ota-Abeokuta Road (80 km)
Lagos-Badagry-Seme Border Road (79 km)
Umahi pointed to critical clauses — including the Put-Call Option Agreements, tolling structures, performance guarantees, and scope of additional facilities — as areas in dire need of revision.
Notably, some contractors were already active on project sites even before concessionaires officially signed contracts — a procedural lapse that, Umahi said, “must be harmonised to avoid legal disputes and project delays.”
He also took aim at the limited oversight by independent engineers and warned against the risks posed by alternate routes that could undermine traffic volumes and project profitability.
Going forward, all concessionaires must install:
CCTV cameras
Solar-powered streetlights
Rest and emergency areas
Advanced safety infrastructure
“These enhancements are now mandatory. We’re shifting the focus from just road delivery to travel experience and security,” Umahi added.
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The Ministry will only hand project sites to concessionaires who:
Secure funding and show proof of financial backing
Pay off old contractor liabilities
Demonstrate technical capacity
Agree to update all legal frameworks
“We won’t disengage any existing contractor unless these preconditions are met,” Umahi insisted.
Present at the Abuja review were top officials from the:
Ministry of Finance
Ministry of Justice
Infrastructure Concession Regulatory Commission
Bureau of Public Procurement
Debt Management Office
Bureau of Public Enterprises
Leading concessionaires (including AFC, Balosh, LIB Concession, and Morta-Engil)
Minister of State for Works, Bello Muhammad Goronyo, praised the reform initiative, calling it “a bold move toward legal and financial clarity.”
“This review sends a message that Nigeria is serious about transparency and world-class infrastructure delivery,” he said.
Separately, the government has approved emergency repairs on a failed section of the Kaduna-Abuja Expressway, following widespread complaints from commuters.
A 500-meter stretch near the Federal Cooperative College at Abuja Junction in Kaduna had deteriorated significantly, slowing down trade and passenger movement.
Goronyo, on inspection, confirmed immediate mobilization of contractors for urgent remediation.
“This is a lifeline corridor. We’re not waiting for more complaints — the work starts now,” he affirmed.
The Kaduna intervention is part of the broader commitment to keep Nigeria’s transport arteries functional, despite fiscal headwinds.
Revised concession clauses will be distributed to all stakeholders within seven days, and concessionaires are expected to submit comments or confirmations.
A follow-up meeting has been proposed to finalize the new framework.
Bottom line? A long-awaited PPP reset is underway — with the Works Ministry aiming to plug policy gaps, safeguard public funds, and deliver modern roads that meet international standards.