The Federal Government has initiated a comprehensive review of road concession agreements under the Highway Development and Management Initiative (HDMI) to promote transparency, ensure value for money, and attract credible private sector investment.
The Minister of Works, David Umahi, led a two-day meeting with concessionaires and key stakeholders at the Ministry's headquarters in Abuja.
The review focused on refining critical clauses in the agreements signed on May 23, 2023, to align with President Bola Tinubu’s Renewed Hope agenda for infrastructure reform.
Umahi raised concerns over existing provisions, including the Put-Call Option Agreement, performance securities, project scope, and tolling structure. He also introduced compulsory features such as CCTV, solar-powered streetlights, and rest areas to improve road safety and commuter comfort.
He made it clear that no contractor currently on-site will be removed unless concessionaires fulfill all conditions, including contract termination, debt settlement, proof of funds, and technical readiness.
Present at the meeting were the Minister of State for Works, Bello Goronyo, and representatives from the Ministries of Justice, Finance, and the Secretary to the Government of the Federation, alongside regulatory agencies including the DMO, ICRC, BPP, and BPE. Concessionaires such as Africa Finance Corp, Morta-Engil, LIB Concession, and others also participated.
The revised agreements will be submitted to principal stakeholders within seven days for final input. Concessionaires are expected to either confirm acceptance or communicate unresolved issues for further deliberation.
The initiative marks a renewed effort to strengthen public-private partnerships and professionalize road infrastructure delivery in Nigeria.
