The Honorable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has revealed that the Federal Government is nearing the final stage of a groundbreaking ₦1.5 trillion road concession initiative under the Highway Development and Management Initiative (HDMI), which includes tolling mechanisms for revenue recovery.
Speaking after a high-level meeting with key stakeholders, including Budget and Economic Planning Minister Abubakar Atiku Bagudu and ICRC Director General Dr. Jobson Ewalefoh, Edun stated that nine major federal highways—spanning about 900 kilometers—are slated for full reconstruction, tolling, and management under a 25-year concession agreement.
Minister of Works Dave Umahi, though in Lagos to inspect progress on the Lagos-Calabar Coastal Highway, participated virtually in the meeting. Edun noted that virtually all administrative hurdles have been cleared and the concessionaires are ready to commence construction, adding that toll gates will be strategically erected on these roads for cost recovery.
“We met with the concessionaires who have virtually concluded all agreement arrangements for nine major highways, which they are contracting to refinance, rebuild, and maintain under 25-year agreements, recovering their investments through tolling fees,” Edun explained.
Among the roads, the 125-kilometer Benin–Asaba Highway has already commenced under a 10-lane expansion plan. The Ministry of Works has handed over the corridor to the concessionaire, marking the first major step under HDMI. The project is expected to reduce travel time between Benin and Asaba from four hours to one, significantly enhancing connectivity and economic activity in the region.
Initiated in 2021, the HDMI is a bold PPP-driven programme targeting the revitalization of Nigeria’s 35,000km federal road network. Initially, 12 corridors—including Abuja–Lokoja, Shagamu–Benin, and Lagos–Badagry–Seme—were selected for concession, covering nearly 2,000 kilometers in total.
The project is expected to create over 50,000 direct jobs and 200,000 indirect employment opportunities, while tackling chronic underfunding and maintenance issues that have long plagued Nigeria’s critical transport arteries.