The Federal Ministry of Works and Housing plans to concession at least 12 federal highways to private firms. in a bid to ensure regular maintenance of road networks across the country.
The arrangement will enable the private companies to introduce toll gates on the 12 highways and generate revenue for regular maintenance of the roads.
In a statement the Federal Ministry of Works and Housing, Abuja says the 12 highways to be concessioned under the Ministry’s Highway Management Development Initiative are Abuja-Lokoja, Benin-Asaba, Kano-Katsina, Shagamu-Benin Onitsha-Owerri, and Abuja-Keffi-Akwanga.
Others include Enugu-Port Harcourt, Ilorin-Jebba, Kano-Shuari, Potiskum-Damaturu, Lokoja-Benin, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme Border.
According to the ministry, the roads are under the pilot phase of the HDMI to be managed by selected private investors under its Value-Added Concession, VAC, arrangement.
The 12 highways represent 1,963 kilometres of the country’s 35,000 km federal highway network. The ministry projects N1.34 trillion worth of investment. 50,000 direct jobs and at least 200,000 indirect jobs would be generated through the concessioning of the highways to the private operators.
The ministry said it obtained approval of the Infrastructure Concession and Regulatory Commission, ICRC, to go ahead with the implementation of the HMDI, which incorporates the concessioning of the highways and the right of way to private sector operators.
The document explains that due to paucity of critical funds to service the ever-expanding road network in the country, the FMWH proposes the engagement of concessionaires who will manage and develop the right of way, while maximising its commercial potential.