The Minister of Works, Engr. David Umahi, has proposed the construction of compulsory facilities like CCTV, solar streetlights, rest areas and other additional facilities needed to improve travel safety and comfort of travellers on the nation’s highways.
Special Adviser (Media) to the Minister, Barr. Orji Uchenna disclosed this in a statement on Wednesday.
Uchenna explained that this was in line with the efforts of the Federal Government of Nigeria to strengthen the concession policy for concessionaires and to enhance funding and private sector participation in the road infrastructure development under the Highway Development Management Initiative (HDMI).
In the two-day meeting held at the conference hall of the Federal Ministry of Works, Mabushi-Abuja, from Friday 18 July, 2025 to 22nd July, 2025, Umahi identified certain articles and clauses in the existing concession agreements executed on 23rd May 2023 that needed to be reviewed both in the original concession agreement and the proposed addendum to ensure value for money, strengthen long term collaboration, transparency and accountability as well as degravitate potential Put- Call Option Agreement and litigation.
He raised issues for discussion including the issue of Put-Call Option Agreement (PCOA), additional facilities, performance security, shifting of encumbrances on site, the role of the independent engineer, competing road/alternate road, change in project scope, revision of toll fees, force majeure and stakeholder consensus building to ensure active citizenship participation in the effective take-off of project construction, tolling and maintenance.
Speaking further, he recalled that contractors were already on some of the project sites before the signing of the concession agreement by concessionaires and that innovations had been introduced to add value to the works sector, hence, the need for a review of the existing concession agreement and its addendum.
He listed some of the requirements for the concessionaires to activate the implementation of their projects, including their obligation to ensure mutual termination of existing contracts before taking over their respective sites, the need to show evidence of their capacity and readiness, including proof of source of funds for the project, payment of all outstanding debts owed to the existing contractors, evidence of technical and financial competence, and availability of company or partner’s equipment.
The Minister restated that the Federal Ministry of Works would not disengage any existing contractor from the site in any of the projects unless the conditions precedent are complied with by concessionaires.
He presented the full details of the proposal of the Federal Ministry of Works on the matters of concern in the existing concession agreement inherited from the past administration and maintained that the essence of the review sought was to ensure that the concessionaires comply with the best practices and the innovations introduced by the Renewed Hope administration of the President of the Federal Republic of Nigeria, Bola Tinubu.
Part of the new addendum the Minister presented was that the concessionaires shall construct compulsory facilities which shall include CCTV and solar streetlights, rest areas and any other additional facilities needed to improve travel safety and comfort of travellers on the entire project route.
He subjected all the issues and concerns raised to extensive deliberation by the stakeholders, including the Honourable Minister of State for Works, Rt. Hon. Bello Muhammad Goronyo, Esq, the Permanent Secretary Secretary Cabinet Affairs Office of the Secretary to the Government of the Federation, Dr. Emanso U. Okop, the representatives of the Federal Ministry of Justice, Federal Ministry of Finance, Debt Management Office, Bureau on Public Procurement, Infrastructure Concession Regulatory Commission, Bureau of Public Enterprises, the team from Public-Private Partnerships Unit of the Federal Ministry of Works and directors of key departments as well as the concessionaires who were in the meeting including Africa Plus/BAAECC, Africa Finance Corp, Morta-Engine, Morta-Engil, Balosh Integrated Services, LIB Concession and Greg Jane Int. Limited.
In his speech, the Minister of State for Works tasked the concessionaires on commitment to the extant laws and regulations necessary for them to achieve the objectives of the HDMI.
While declaring the meeting closed, the Minister of Works stated among other things that the articles and clauses as reviewed during the meeting would be exposed to the principal stakeholders (Heads of relevant MDAs) within 7 days for further and final deliberation and that each of the concessionaires should communicate their acceptance of the agreement as reviewed or communicate the Federal Ministry of Works on grey areas so that such concerns would be reviewed in a meeting of the principal stakeholders.
