Toll gates when the Nigerian government gives individuals licenses to build, maintain highways

The Nigerian government says private individuals will be allowed to build, manage or maintain property on some federal highways that have been ceded.

The arrangement is under a new Highway Development and Management (HDMI) initiative.



The Federal Ministry of Labor and Housing has already received a Business Case Compliance Certificate to begin the procurement process for the concession of 12 federal highways under HDMI.

The arrangement will lead to the use of toll ramps for concessionaires to recoup investments.

In a new document on how the HDMI partnership will be executed, FMWH stated that there are two categories, a value-added concession and an approval for the segregated assets.

In the value-added concession initiative, the ministry said the roadway and the entire crossing will be on concession for development and management by the concessionaire.

The ministry added that the concession agreement would provide appropriate highway services through the development of revenue-generating assets along the highways. It is added that the initiative will also create more than 200,000 jobs.

“Both approaches aim to provide adequate services on the highway through the development of revenue-generating assets along the highway. This is key for maintaining the functionality of the highway, as well as for including and creating wealth for indigenous small and medium enterprises, “the ministry said.

“The main goal of the initiative is to attract expertise and sustainable investment / financing in the development of road infrastructure and to maximize the use of property along the right of the road and to develop other highway infrastructure.

“It’s not really about income, but about the expected injection into the economy. The estimated private sector investment required to develop and maintain the 12 routes is N1.34 trillion and the impact that such investment will have on the economy cannot be overestimated.

“It is planned to create at least 50,000 direct jobs and over 200,000 indirect jobs, and include construction work, installations, steelmaking, safety, catering, vehicle repairs, waste management and administrative jobs while activating the value chain along the highway economy.”

Former President Olusegun Obasanjo ordered the demolition of toll plazas in 2003, saying the roads should be maintained with revenue from the increase in the price of the fuel pump.

He also claimed that the 63 million NZ collected per day was insignificant and that the facilities were an inconvenience to drivers and encouraged corruption.

Source