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Private-sector funding to build road network

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By Mercy Kelani

This is as a result of the deteriorating road network in the country.

The Ministry of Works has affirmed its commitment to partnering with concessionaires and various private sector entities to achieve the vital goal of obtaining investments for the development of an extensive federal road network spanning 35,000km throughout the entire nation. The deteriorating road network in the country has prompted the ministry to take action and seek private-sector funding options. To ensure a comprehensive approach, the ministry has actively engaged state governors and leaders from the private sector in this initiative.

In Abuja, there was a private meeting that took place between David Umahi, the Minister of Works, and Dr. Agbu Kefas, the Governor of Taraba State. Also present were Aliko Dangote, the founder of Dangote Group, and Ndudi Elumelu, a former Minority Leader in the House of Representatives. This meeting was influenced by recent developments. Uchenna Orji, the Special Adviser on Media for the minister, released a statement on January 24, 2024, noting the contained information.

Federal highways will witness a revolutionary transformation.

So as to assess the scale and financial impact of projects falling under the Highway Development and Management Initiative, the minister has established three committees dedicated to examining the contracts awarded to various concessionaires. These committees have been assembled to thoroughly evaluate the scope and cost implications associated with these projects. Umahi shared his thoughts after the meeting, stating that the objective behind it was to strengthen connections and delve into alternate means of funding for the development, reparation, and restoration of various federal highways nationwide, with the assistance of Public-Private Partnerships.

Furthermore, the Minister of Works, David Umahi, has been actively involved in discussions with concessionaires and other private sector entities regarding the importance of private sector investment in Nigeria’s road infrastructure, just as advanced economies around the globe have already done. The statement emphasizes the Minister’s commitment to road infrastructure initiatives. The federal highways will witness a revolutionary transformation in its road infrastructure through a new, privately-led endeavour. This initiative aims to expedite the process and ensure that there is improved organization, responsibility, and profitable business practices in the operations, management, and maintenance of these highways.

Investment in the national road network, spanning over 35,000km.

Also, the current administration and the private sector possess immense willpower and professional expertise that could be harnessed by investors, both local and international, as well as other organized entities. This collaboration is intended to encourage investment in the vast expanse of the national road network, spanning over 35,000 kilometers. The nation’s reliance on this road network cannot be overstated, as it facilitates the transportation of goods and services, accommodating over 70% of vehicular traffic. Its role as a vital infrastructure is indispensable in maintaining the smooth flow of economic activities throughout the country.

More so, the declaration went on to express that, with unwavering determination, the individual who established and presently leads Dangote Group has displayed a clear dedication to revolutionizing Nigeria’s infrastructure. This has been accomplished by making extensive investments in key areas of Nigeria’s economy, namely financial services and the development of essential infrastructure. The President’s unwavering commitment to the nation’s success and prosperity is demonstrated through this bold initiative, which promises to ignite economic growth, foster job opportunities, nurture local talents, and generate wealth for the Nigerian citizens. With an unyielding determination to elevate the country’s status as a shining beacon in Africa, the President’s actions speak volumes about his dedication to progress and upliftment.

Related Article: FG to Terminate Abandoned Road Projects 

Additionally, in the beginning of 2021, the government issued a notification to start the process of acquiring goods and services for the 12 federal highways that were designated for concession as part of the Highway Development Management Initiative. The bid for the Value Added Concession for federal roads under the HDMI was scheduled to commence on June 1, 2021, several months after the initial announcement. In April 2022, the Federal Government made a grand proclamation, revealing its discovery of esteemed individuals or organizations who were selected to participate in the bidding process for the concession of highways within the HDMI project. A collection of papers uncovered by reports subsequently unveiled the identities of the reserved bidders who had been chosen for the 12 road projects.


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AN-Toni
Editor
1 month ago

Private-sector funding to build road network. – This is as a result of the deteriorating road network in the country. Express your point of view.

Kazeem1
Member
1 month ago

That the road network is being constructed with support from the private sector is wonderful to hear. The country’s transportation system and general development may be significantly impacted by the decaying road network.

Taiwo
Member
1 month ago

funding from the private sector to construct the road network. This is a result of the nation’s road system decaying.Through a new, privately-led initiative, the road infrastructure of the federal highways will undergo a revolutionary overhaul. This program seeks to guarantee better organization and speed up the procedure.

Adeoye Adegoke
Member
1 month ago

I totally understand the frustration with a deteriorating road network. It can be quite a challenge to navigate and it affects everyone’s daily lives. The announcement of private-sector funding to build and improve the road network is definitely a positive step forward.
Having private-sector involvement can bring in additional resources and expertise to tackle the infrastructure issues more efficiently. It can lead to faster construction, better maintenance, and overall improvement in the quality of the roads.
A well-maintained road network is crucial for the smooth movement of goods, services, and people, which in turn can boost economic growth and productivity. It can also enhance road safety and reduce accidents caused by poor road conditions.
However, it’s important to ensure that the private-sector funding and involvement are aligned with the public interest. Transparency, accountability, and proper regulations should be in place to prevent any potential issues or conflicts of interest.

SarahDiv
Member
1 month ago

The Ministry of Works is joining hands with private partners, including Aliko Dangote, to revive our road network, covering 35,000km. It’s a vital step to address the worsening infrastructure, fostering economic growth and prosperity through Public-Private Partnerships.