Private individuals are now allowed to build, manage or maintain property on some federal highways that have been ceded, the federal government said.
The arrangement is under a new Highway Development and Management (HDMI) initiative.
The nation gathered that the initiative is contained in a new document on how the partnership will be executed.
The document was published by the Federal Ministry of Labor and Housing and signed by Boade Aquinola, its director of press and publicity.
FMWH said the concession process would be classified into two categories – value-added concessions and approvals for separate assets.
For a value-added concession, the roadway and the overall passing advantage will be on the concession for the development and management of the concessionaire.
While for the initiative for separate approval of property, “permits / permits are issued for individual property based on the advantages of construction, operation and maintenance”.
The nation gathered that the Federal Ministry of Labor and Housing has already received a certificate of compliance with the basic business case for the start of the procurement procedure for the concession of 12 federal highways.
This means that individuals would now be allowed to develop and maintain property on economically viable federal highways to boost economic activities on the roads.
FMWH stated that the goal was to provide adequate services on the highway through the development of revenue-generating assets along the highways.
A concession on the roads can also mean the return of toll gates, as concessionaires will have to recoup their investments.
The Infrastructure Concession Regulatory Commission presented the certificate to Labor and Housing Minister Babatundeu Fasholi at FMWH headquarters in Abuja.