…Pledges immediate repairs on Kaduna-Abuja expressway
By Yahaya Umar
Federal Government has set out new conditions to guide the implementation of road concessions nationwide under the Highway Development and Management Initiative ,HDMI.
HDMI is a flagship infrastructure financing model designed to attract private sector investment in Nigeria’s road network.
At a two-day stakeholders’ meeting held at the Federal Ministry of Works headquarters in Abuja from July 18 to July 22, 2025, the Minister of Works, Senator David Umahi, announced a comprehensive review of concession agreements initially signed on May 23, 2023.
The meeting, attended by concessionaires, regulatory agencies, and key stakeholders, focused on refining the concession framework to enhance project delivery, transparency, and long-term viability.
HDMI, introduced to address the country’s infrastructure deficit through Public-Private Partnerships ,PPPs, enables private sector players to finance, construct, operate, and maintain select federal highways.
However, Umahi noted that several clauses in the existing agreements, including those on the Put-Call Option Agreement ,PCOA, performance security, and change in project scope, needed urgent review to align with current realities and best practices.
Among the issues subjected to extensive deliberation were the provision of compulsory roadside facilities such as CCTV, solar-powered streetlights, and rest areas, and the clarification of roles involving independent engineers and stakeholders.
Others are site encumbrance resolution and performance guarantees; project tolling mechanisms, force majeure conditions, and community engagement strategies.
Umahi disclosed that some contractors had commenced preliminary works on sites before the signing of the concession agreements, thereby creating complications that required mutual termination of prior contracts before concessionaires could officially take over.
He listed fresh prerequisites for concessionaires to activate their project sites. These include: Evidence of project funding and financial capability, proof of technical competence and equipment availability, settlement of debts owed to existing contractors, and compliance with mutual termination agreements of prior contracts.
The Minister emphasised that no contractor currently engaged on any federal highway would be removed unless these conditions were met.
He further read out, clause by clause, the proposed addendum to the concession agreement prepared by the ministry, detailing the changes aimed at aligning the projects with the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration.
Umahi directed that the revised agreements be presented to the principal heads of relevant MDAs within seven days for further deliberation.
He also instructed concessionaires to formally communicate either their acceptance or areas of concern regarding the reviewed documents to enable final harmonisation in a follow-up meeting.
Also in attendance were key government stakeholders, including the Minister of State for Works, Hon. Bello Muhammad Goronyo; representatives of the Federal Ministries of Justice and Finance; the Debt Management Office; Bureau of Public Procurement; Infrastructure Concession Regulatory Commission; Bureau of Public Enterprises; and several concessionaires such as Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engine, Balosh Integrated Services, LIB Concession, and Greg Jane Int. Limited.
Goronyo, in his remarks, lauded Umahi’s leadership and dedication and urged concessionaires to uphold the extant laws and regulatory frameworks guiding PPP projects in Nigeria.
The HDMI initiative currently covers 12 pilot highways, including the Lagos-Badagry Expressway, Benin-Asaba Road, Abuja-Keffi-Akwanga Road, and Shagamu-Benin Expressway, among others.
Meanwhile, the Minister of State for Works, Bello Muhammad Goronyo, has pledged immediate repairs on the critical portion of the Kaduna-Abuja Expressway.
Goronyo spoke while on the inspection visit to the affected portion of the road on Tuesday, on the directive of President Bola Ahmed Tinubu.
The affected stretch, approximately 500 metres by the Federal Cooperative College at Abuja Junction in Kaduna, has been causing significant delays in the movement of people, goods, and services.
The vital corridor is a major link within the nation’s socio-economic zones, and its failed condition has greatly heightened the hardship of motorists and greatly impacted economic activities.
The Minister emphasised the strategic importance of the road, reiterating Tinubu’s commitment to making Nigerian roads motorable and safe, despite existing funding constraints.
He noted that the president had made it a priority to ensure swift interventions, where necessary, to ease the suffering of Nigerians.
Goronyo assured the public that the ministry had assessed the identified portion of the road and would commence immediate emergency repairs.
“This proactive measure is part of the government’s broader agenda to strengthen road infrastructure and promote an efficient transportation network across the country”, he said.
The Minister, while appreciating the patience and understanding of road users, assured the public of concerted efforts to deliver quality roads and bridges for accelerated national development.
