The Federal Government has taken decisive steps to remove bureaucratic hurdles that stalled private sector investment in key road projects for over a year, unlocking significant infrastructure development under a Public-Private Partnership (PPP) framework.
Speaking on Arise TV, Minister of Finance and Coordinating Minister for the Economy, Wale Edun, reaffirmed President Bola Tinubu’s commitment to addressing Nigeria’s $100 billion annual infrastructure deficit by mobilising private capital.
Edun highlighted recent approvals by the Federal Economic Council, allowing private investors to proceed with the Benin-Asaba Highway and the Lagos-Abeokuta Road—both part of the Highway Development and Management Initiative (HDMI, launched under the Buhari administration.
The HDMI initially attracted strong domestic investor interest but faced bureaucratic delays that slowed execution.
With the Tinubu administration’s intervention, the projects—alongside a broader 5,000-kilometre road concession programme—are moving forward.
Investors have secured long-term financing, much of it from domestic sources, to construct, toll, and maintain these roads, significantly improving transport efficiency.
“These investors have gathered long-term finance, much of it from Nigeria, in order to build these roads, concession them, and toll them,” Edun said.
He noted that travel times will be slashed by 75%, with the Benin-Asaba corridor dropping from four hours to one hour.
The HDMI’s timeline reflects the challenges and progress in Nigeria’s PPP road infrastructure programme.
In January 2023, the Federal Executive Council (FEC) approval for nine road corridors (1,374 km), with an expected N11.54 trillion revenue over a 25-year concession period.
May 2023 witnessed the signing of concession agreements for nine pilot roads with six concessionaires, including Africa Plus Partners Nigeria Limited (APPNL), which won the Benin-Asaba (125 km) and Lagos-Abeokuta (80 km) expressways.
But November 2023 – January 2025 recorded series of renegotiations, addendums, and legal adjustments.
The HDMI programme has engaged several concessionaires for specific highway corridors.
Some of them include: Africa Plus Partners Nigeria Limited (APPNL): Benin-Asaba Expressway (125 km) and Lagos-Abeokuta Expressway (80 km).
Avia Infrastructure Services Limited (AISL): Abuja-Lokoja Highway (195 km).
Enyimba Economic City Consortium: Onitsha-Owerri-Aba Highway (161.2 km) and Enugu-Port Harcourt Expressway (200 km)
AFC/Mota-Engil Consortium: Shagamu-Benin Highway (258 km) and Lagos-Badagry-Seme Border Road (79 km).
China Harbour Engineering Company Ltd (CHEC): Abuja-Keffi-Akwanga-Lafia-Makurdi Highway (175.9 km).
Dafac Consortium: Kano-Shuari Highway (100 km).
While Nigeria has long had a regulatory framework for PPPs, including the Infrastructure Concession Regulatory Commission (ICRC), established in 2008, recent efforts have focused on making these partnerships more transparent, efficient, and attractive to investors.
The government’s renewed push aims to address past challenges, including delays in approvals and inconsistencies in concession terms.
Some of these projects are believed to have secured investment from Nigerian pension fund managers, signalling a growing domestic appetite for infrastructure as an asset class.
However, investors will be closely watching how the government manages execution and regulatory oversight to ensure sustained success.
With the Tinubu administration economic reforms, these road projects will serve as a test case for Nigeria’s ability to leverage private capital to bridge its infrastructure gap and drive economic growth.