FG to harvest N163.3bn from new highways investment

The federal government has presented a highway development and management initiative to harness investment opportunities on the 35,000 federal highways for the country’s economic development.

Minister of Works, Mr. Babatunde Fashola, made the presentation at a joint interactive session of the Senate and House Committee on Works in Abuja.

The meeting was to deliberate on public-private partnership on road and infrastructure with the Federal Ministry of Works and Housing and Infrastructure Concession Regulatory Commission (ICRC).

According to Fashola, the plan is expected to generate investments of N163.32 billion and provide over 22, 000 jobs in the first instance, asserting that the plan would attract sustainable investment and funding in the development of road infrastructure.

The minister stated that the initiative hinged on private sector engagement would maximise the use of assets along the right of way and also develop other highway furniture through value added concession and the unbundled assets approval.

Fashola noted that what the ministry seeks to do is to bring more diverse capacity to manage the country’s road infrastructure, adding that “the current administration is already involved in those areas, such as the tax credits, SUKUK and we are looking at many other options.”

He said that the plan, which would be private sector-driven is expected to generate over 22, 000 jobs on the highways in its first phase of implementation.

The minister listed the 10 roads to be considered for concession in the first phase to include Benin-Asaba, Abuja-Lokoja, Kaduna-Kano, Onitsha-Owerri-Aba, Sagamu-Benin, Abuja-Keffi-Akwanga, Kano-Maiduguri, Lokoja-Benin, Enugu-Port Harcourt and Ilorin-Jebba.

Chairman of the Senate committee, Sen. Adamu Aliero, described the initiative by the ministry as a welcome development, saying it would certainly add value to the roads.

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According to him, it will also ease funds for other critical sectors of the economy, particularly on education and health.

“What is required is the political will; the past administration had not done very well on this. Toll plazas were demolished overnight, not minding the fact that a lot of money was used in constructing them. By then, there was no legislation; strong legislation that will prohibit that kind of a thing.

“I can assure you that with the kind of support we have with the leadership of the National Assembly and the two committees, we will come up with a very strong legislation that will give legal backing to this. No administration will come and overturn it,” Sen. Aliero said.

He said that having such strong legislation was the only thing with which the government could convince the private sector to come and invest.

“Otherwise, if you cannot provide protection to the investment of businessmen, they will not be willing to come. The National Assembly and the executive will work together and come out with something that is workable,” he added.