According to the statement signed by the Ag. Head, Media and Publicity, Infrastructure Concession Regulatory Commission, Manji Yarling, the road project will be tolled as part of the public-private partnership model approved by the Federal Executive Council.
FG targets N11.54 trillion revenue from the concession of 9 road corridors
The Federal Government has approved a 25-year deal which will see it rake in total revenue of N11.54 trillion from the concession of nine road corridors.
Manji Yarling - Ag. Head, Media and Publicity, Infrastructure Concession Regulatory Commission
Recall the FG had in April 2022, announced it had identified interested/reserved bidders for 12 federal highways (which had 13 routes within), set up for concession under the Highway Development and Management Initiative - HDM.
The 12 shortlisted highways which were earlier earmarked to be concessional represent 1,963km or 5.6 percent of Nigeria’s 35,000km federal highways and include: Benin-Asaba (125km), Abuja-Lokoja (193km), Kano-Katsina (150km), Onitsha-Owerri-Aba (161km), Shagamu-Benin (258km), Abuja-Keffi-Akwanga (122km), Kano-Shuari (100km), Potiskum-Damaturu (96.24km), Lokoja-Benin (270km), Enugu-PortHarcourt (200km), Ilorin-Jebba (129km), Lagos-Otta-Abeokuta (80km), and Lagos-Badagry-Seme (9km).
However, only nine corridors have been approved for concessioning as three corridors and one route still needed to reach the FEC approval stage.
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Yarling, while giving insight into the development confirmed that the projects which will utilize the Public Private Partnership - PPP model will generate over N11.54 trillion in the 25 years concession period.
According to the federal ministry of works and housing, the request-for-qualification notice for the 12 highways was published on March 29, 2021, through the HDMI portal. 75 interested firms/consortia had successfully submitted valid applications at the close of the request for quotation - RFQ portal on May 31, 2021.
The 75 submitted bids were later evaluated by an inter-ministerial evaluation committee and 18 firms/consortia were chosen, having prequalified and met all the criteria outlined in the RFQ notice.
According to Yarling, the plan to concession the roads is to ensure the management and development of the Nigerian Federal Road Network.
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