FG confirms N1.5 trillion funding for 9 freeway concessions spanning 900km 

The Federal Authorities has confirmed a N1.5 trillion funding in 9 main freeway initiatives spanning over 900 kilometres, to be delivered by way of 25-year public-private concession agreements beneath the Freeway Improvement and Administration Initiative (HDMI).

The announcement adopted a high-level assembly chaired by the Minister of Finance and Coordinating Minister of the Financial system, Wale Edun, alongside the Minister of Funds and Financial Planning, Senator Abubakar Atiku Bagudu.

Based on an announcement on the Ministry of Finance’s official X account, the session introduced collectively key concessionaires accountable for managing the initiatives.

“The Honourable Minister of Finance and Coordinating Minister of the Financial system, Mr. Wale Edun, immediately chaired a high-level assembly with companions beneath the Freeway Improvement and Administration Initiative (HDMI), reinforcing the Federal Authorities’s dedication to unlocking infrastructure funding by way of long-term personal concessions. 

“The session, collectively held with the Honourable Minister of Funds and Financial Planning, Senator Abubakar Atiku Bagudu, convened concessionaires managing 9 freeway initiatives protecting over 900km, with a mixed worth of N1.5 trillion and anticipated to be delivered beneath 25-year concession agreements,” the assertion learn partly.

Based on the ministers, the initiative displays the present administration’s strategic give attention to personal sector-led infrastructure as a way to drive inclusive financial progress, shut funding gaps, and create jobs.

Extra insights  

Minister Edun famous that the nation’s return to macroeconomic stability—with GDP progress of three.4% in 2024—should now be matched with quicker, broader growth pushed by personal capital.

“We’ve stabilised the economic system. Now we should develop quicker, broader, and inclusively. Non-public-led infrastructure supply is central to that mission,” Edun acknowledged.

He cited the Benin-Asaba freeway concession as proof of idea, already attracting assist from institutional and international buyers. He additionally conveyed the Minister of Works’ directive that concessionaires should present proof of funds to make sure well timed mobilisation.

• Senator Bagudu emphasised the administration’s shift towards toll-based freeway growth, which permits buyers to get well their capital by way of person charges whereas easing the strain on public funds. He described the programme as a core pillar of the Renewed Hope Agenda, which promotes fiscal self-discipline, strategic investments, and personal sector collaboration.

• The HDMI mannequin goals to modernise Nigeria’s freeway infrastructure by combining personal funding with long-term nationwide growth objectives.

With over 900km of roads focused and N1.5 trillion in projected funding, the initiative marks one of the formidable street concession programmes within the nation’s current historical past.

What it’s best to know   

The Federal Authorities has beforehand highlighted the challenges of sustaining Nigeria’s 35,000-kilometre federal street community by way of annual budgets alone.

• In February, the Minister of State for Works, Muhammad Bello Goronyo, famous that years of neglect, inflation, and safety considerations have exacerbated the nation’s infrastructure deficit, emphasizing the necessity for various funding fashions
• The adoption of a totally private-financed method for the Benin-Asaba Superhighway marks a major step towards addressing this funding hole. By leveraging personal capital, the mission reduces dependence on federal budgets whereas advancing important infrastructure growth.
• It’s anticipated that roads financed beneath private-sector preparations, such because the Benin-Asaba Superhighway, can be tolled upon completion.

This tolling mannequin is predicted to generate the income wanted to get well development prices and make sure the sustainability of such initiatives.