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Daniel Adaji
Private investors will fund nine major highway projects covering over 900 kilometres under an N1.5tn initiative driven by the Federal Government, Minister of Finance and Coordinating Minister of the Economy, Wale Edun has said.
Edun stated this on the Ministry’s X handle on Wednesday.
“We have stabilised the economy. Now we must grow faster, broader, and inclusively. Private-led infrastructure delivery is central to that mission,” Edun said during a high-level meeting with highway concessionaires in Abuja.
He emphasised that private capital will be critical in delivering large-scale road projects that support national growth.
The projects will be delivered under the Highway Development and Management Initiative (HDMI), a federal programme that enables long-term public-private partnerships through 25-year concession agreements.
These concessions will allow investors to build, operate, and maintain the roads while recovering costs through tolling and other commercial means.
The meeting, co-chaired by Edun and the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, brought together companies managing the concessions. It marks a major step in implementing the HDMI model, which seeks to modernize Nigeria’s federal highway network through private-sector financing.
Bagudu described the programme as a core pillar of the Renewed Hope Agenda, which prioritizes fiscal discipline, job creation, and strategic investment. “Toll-based development allows investors to recover their capital through user fees while easing pressure on public finances,” he said.
In the post, the government reaffirmed its commitment to attracting private capital to reduce reliance on federal budgets. The ministry noted that over 35,000 kilometres of federal roads cannot be sustainably maintained through yearly allocations alone.
The Benin-Asaba Superhighway, one of the nine projects, serves as a pilot for the HDMI model. Edun cited the project as a proof of concept that has already attracted interest from global and institutional investors.
He added that all concessionaires are required to show proof of funds before mobilisation, as directed by the Minister of Works.
The HDMI was developed to address longstanding issues in Nigeria’s road infrastructure, including years of neglect, inflation, and security-related delays. By introducing long-term private investment, the government aims to close funding gaps and enhance road quality nationwide.
Minister of State for Works Muhammad Goronyo had earlier warned that traditional funding models are no longer sufficient to manage the country’s deteriorating road infrastructure.
The shift to private financing, especially with toll-backed revenue models, is expected to offer a sustainable path forward.