The Nigerian Government revealed that the 25 years concession period approved by the Federal Council (FEC) to maintain Nigeria’s highways will generate the sum of N11.54 trillion for the economy.
This was disclosed by the Infrastructure Concession Regulatory Commission (ICRC) Acting Head, Media and Publicity of ICRC, Manji Yarling, in a statement on Thursday in Abuja reported by NAN.
ICRC added that the approvals came through the Highway Development and Management Initiative (HDMI).
Aims: The ICRC said the goals of the project are to ensure the management and development of the country’s Federal Road Network and achieve adequate highway services.
”The aim of the partnership is to develop and manage the federal road network, thereby supplementing the Federal Government’s budgetary allocation for the infrastructural development stage.
”Some key objectives of the projects are to leverage private sector investment to improve facilities and operations on the selected routes, infrastructural development using a commercial approach that bridges funding gaps.
”It is also to maximise the revenue-generating potential of the routes and achieve equity in road charges”.
N11.5 trillion: The report added that ICRC said the recent Federal Council (FEC) approval for 1,374-kilometre road projects will generate over N11.54 trillion for Nigeria.
ICRC added that the approval for construction and maintenance of the roads was under the Highway Development and Management Initiative (HDMI) with the guidance of the commission.
Routes: According to ICRC, some of the routes approved for concession include the 125 kilometres Benin-Asaba road which has been granted the concession for a 25-year period and is expected to generate N1.58 trillion with the concessionaire, Africa Plus Consortium.
The 195km Abuja-Lokoja road, also has a 25-year concession period and is expected to generate N1.76 trillion with Avia Infrastructure Services Ltd (AISL) as a concessionaire.
ICRC added the 161.2km Onitsha-Owerri-Aba route would generate N706 billion with Enyimba Economic City Consortium as a concessionaire.
They also revealed that the emergent concessionaires would recoup their investment through the use of road tolls and other land value capture infrastructure.
What you should know
The Federal Executive Council(FEC) this week approved the recommendation for the Nigerian National Petroleum Corporation Limited (NNPC LTD.) to invest N1.9 trillion in the reconstruction of 44 federal roads under the tax credit policy. They said:
“The Federal Executive Council approved the recommendation to invest in the reconstruction of selected federal roads under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy phase 2 by the Nigerian National Petroleum Corporation (NNPC) Limited and its subsidiaries.
“So, the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometres in the total sum of N1.9 trillion.’’
Road Concession: They added the Minister for Works and Housing also got the approval from the council for concessionaires for nine road corridors under the pilot phase of the value-added section of the Highways Development and Management Initiative following the issuance of the requisite full business case compliance certificate by the Infrastructure Concession Regulatory Commission for a period of 25 years for each road corridor as follows.
“The roads that will be under this first phase are the Benin-Asaba corridor, Abuja-Lokoja-Onitsha-Owerri-Aba, Shagamu-Benin, Abuja-Keffi-Akwanga-Makurdi, Kano-Maiduguri, Enugu-Port Harcourt, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme.’’
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