In its bid to ensure the regular maintenance of its road network across Nigeria, the Federal Ministry of Works and Housing plans to concession no fewer than 12 federal highways to private entities to manage.

The arrangement would enable the private companies to introduce toll gates on the 12 highways and collect revenue which they would use and regularly maintain such roads.
This information is contained in a document, which Vanguard obtained, yesterday, from the Federal Ministry of Works and Housing in Abuja.

The 12 highways to be concessioned under the Ministry’s “Highway Management Development Initiative”, HMDI, are: [/b]Benin-Asaba, Abuja-Lokoja, Kano-Katsina, Onitsha-Owerri, Shagamu-Benin and Abuja-Keffi-Akwanga.[b]

Others are: [/b]Kano-Shuari, Potiskum-Damaturu, Lokoja-Benin, Enugu-Port Harcourt, Ilorin-Jebba, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme Border.[b]

The roads, according to the ministry, come under the pilot phase of the HDMI to be managed by selected private sector investors under its Value-Added Concession, VAC, arrangement.

The 12 highways according to the document reviewed by Vanguard represent merely 5.6 percent or 1,963 kilometres of the country’s 35,000 km federal highway network.

The document estimates that not less than N1.34 trillion of private sector investment would flow into the highways while no fewer than 50,000 direct jobs and 200,000 indirect jobs would be created by the concessioning of the highways to the private operators

“It’s not really about revenue; it is about the expected injection into the economy. The estimated private sector investment required for the development and maintenance of the 12 routes is N1.34 trillion and the impact such investment will have on the economy cannot be overstated.

“The anticipated private sector investment will stimulate thousands of job opportunities for Nigerians as the Highway Economy comes alive along federal highways.

A minimum 50,000 direct jobs and over 200’000 indirect jobs are envisaged to be created spanning construction works, installations, steel fabrication, security, hospitality, vehicle repairs, waste management and administrative work as the Value Chain along the Highway Economy is activated. The combined impact of this mini economy will be a significant boost to our national GDP as productivity and earnings are enhanced,” the ministry document boasted.

Beyond the Value-Added Concession, VAC arrangement, the FMWH is also planning to use another vehicle known as the Unbundled Assets Approvals initiative, UAAI, to maximize the use of its assets on the highways.

Under this category, the ministry plans to issue approvals/permits to individuals to use assets on the right of way on a Build, Operate and or maintain basis.

Both the VAC and the UAAI, according to the ministry aim to provide adequate highway services through the development of revenue-generating assets along the highway.

“This is key to maintaining the functionality of the highway as well as engaging and generating wealth for indigenous small and medium enterprises,” it says.

The ministry explained that it had already obtained the approval of the Infrastructure Concession and Regulatory Commission, ICRC, to go ahead with the implementation of the HMDI which incorporates the concessioning of the highways and the right of way to private sector operators.

Explaining the objectives of the HMDI, the ministry said: “The objective is to develop an eco-system along the federal highway network by bringing multi-dimensional resources of skills, manpower, finance, technology, and efficiency into the National Highway governance.

“Ultimately, this home-grown initiative will be the lasting solution to the development and management of federal highways by introducing order, accountability and profitable entrepreneurship to the operation, management, and maintenance of Nigeria’s 35,000 km federal highways.

“The Initiative is expected to be anchored on private sector engagement via concessioning of economically viable routes to technically and financially capable private companies, through the management and development of the right-of-way. A major hindrance to highway development and management has been a paucity of required funds to service the vast and ever-expanding road network. To negate this handicap, the FMWH proposes the engagement of concessionaires who will manage and develop the right of way, whilst maximizing its commercial potential.

“The main objective of the Initiative is to attract expertise and sustainable investment/funding in the development of road infrastructure and to maximize the use of assets along the Right of Way and develop other highway furniture,” the ministry pointed out.
The government, according to the document will soon call for bidders in a transparent process that would be conducted in collaboration with the ICRC.

It said: “The Federal Ministry of Works and Housing, in collaboration with the ICRC, will soon advertise the Request for Qualification (RFQ) bidding process for the available categories under the HDMI scheme.

“The process will be transparent to allow the most effective bids to compete vigorously in a process that delivers service and dividend to Nigerians. (technically and financially capable firms/consortiums).

“We are determined to ensure our assets are entrusted into capable hands. Therefore, interested persons, companies and groups are advised to

Form consortiums of construction/road maintenance companies, financiers, toll operators, rest house operators, advertising companies, lane marking experts, refuse managers and other partners.”
Some of the revenue-generating assets and highway services being targeted by the ministry are: Toll plazas, weighbridges, advertising assets, directional signage structures and space, street lighting with advertising space and open spaces, including but not limited to truck parks and rest areas, refuse management, towing services, highway monitoring and emergency services.

The ministry made it clear that it was carrying out the new initiative since it has a legal framework under the Federal Highway Act, which vests the Minister of Works and Housing with authority over federal highway network and empowers him to administer tolls on federal highways.

Besides, the ministry said that the Infrastructure Concession Regulatory Commission (ICRC) is mandated by law with regulatory oversight over Ministries, Departments and Agencies in developing bankable PPP projects, pointing out that the ICRC worked closely with it in the conception of the initiative.

“The ICRC has just issued a Certificate of Compliance to the Ministry of Works and Housing, what this means is that the ministry has met all the conditions necessary to proceed to the next stage of procurement of the HDMI scheme.

“So, we are about to kick-off with the pilot phase of the HDMI scheme. In the first phase, the government is proposing the concession of 12 selected federal highways to private sector investors, under the Value-Added Concession, VAC arrangement”.

SOURCE:https://www.vanguardngr.com/2021/02/fg-plans-tolling-on-12-highways/amp/

Earlier today, many people were misinformed about the toll plaza currently been constructed in tow with the 2nd Niger Bridge. Toll gates will be constructed across the country. Fashola promised that they'll only toll when the roads are comfortably motorable. So, if you think the 2nd Niger bridge is a vendetta against SEners, which among the roads listed is motorable and yet to be tolled?

Like I don't get.. why will govt. tax commuters on highways? on what grounds??
The only time you toll say a highway is if it's newly constructed and govt. needs to recoup the money (over a stipulated period of time).

What exactly is wrong with the present APC cabinet members? It's like they are taking Nigerians for a ride or something. Diesel has gone up to #700, PMS is approaching #400 and prices of goods have doubled in the market, yet minimum wage hasn't increased.

Quitam:
Earlier today, many people were misinformed about the toll plaza currently been constructed in tow with the 2nd Niger Bridge. Toll gates will be constructed across the country. Fashola promised that they'll only toll when the roads are comfortably motorable. So, if you think the 2nd Niger bridge is a vendetta against SEners, which among the roads listed is motorable and yet to be tolled?

So are you saying all this roads you mentioned are not motorable?

May sth slightly resembling Buhari never happen to us again!


Nigeria is indirectly overtaxing its citizens more than the US. The only difference is the US provides basic amenities and Nigeria provides compulsory suffering.

FG should also use the Tolls Collected to hire people who will Patrol and secure the highways All the time including using drones and CCTV

Quitam:
Earlier today, many people were misinformed about the toll plaza currently been constructed in tow with the 2nd Niger Bridge. Toll gates will be constructed across the country. Fashola promised that they'll only toll when the roads are comfortably motorable. So, if you think the 2nd Niger bridge is a vendetta against SEners, which among the roads listed is motorable and yet to be tolled?

According to the report, if I am travelling from Lagos to owerri a distance of 538km , I will pay toll in Benin to asaba, asaba to onitsha via the new constructed bridge and finally pay toll from onitsha to owerri.

But my good friend shehu will leave same Lagos to Kano about 987km but will only pay toll between lokoja to Abuja.

You see why some of us feel Nigeria is full of injustice.

dejol88:


According to the report, if I am travelling from Lagos to owerri a distance of 538km , I will pay toll in Benin to asaba, asaba to onitsha via the new constructed bridge and finally pay toll from onitsha to owerri.

But my good friend shehu will leave same Lagos to Kano about 987km but will only pay toll between lokoja to Abuja.

You see why some of us feel Nigeria is full of injustice.

You are getting it twisted. It's not everything that should be bifurcated using this northerner/southerner appelations pls. There are southerners that ply northern roads more than the south and vice versa too. Remember these are not rural roads, but major ones

Quitam:


You are getting it twisted. It's not everything that should be bifurcated using this northerner/southerner appelations pls. There are southerners that ply northern roads more than the south and vice versa too. Remember these are not rural roads, but major ones

he asked you a reasonable question

Quitam:

In its bid to ensure the regular maintenance of its road network across Nigeria, the Federal Ministry of Works and Housing plans to concession no fewer than 12 federal highways to private entities to manage.

The arrangement would enable the private companies to introduce toll gates on the 12 highways and collect revenue which they would use and regularly maintain such roads.
This information is contained in a document, which Vanguard obtained, yesterday, from the Federal Ministry of Works and Housing in Abuja.

The 12 highways to be concessioned under the Ministry’s “Highway Management Development Initiative”, HMDI, are: [/b]Benin-Asaba, Abuja-Lokoja, Kano-Katsina, Onitsha-Owerri, Shagamu-Benin and Abuja-Keffi-Akwanga.[b]

Others are: [/b]Kano-Shuari, Potiskum-Damaturu, Lokoja-Benin, Enugu-Port Harcourt, Ilorin-Jebba, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme Border.[b]

The roads, according to the ministry, come under the pilot phase of the HDMI to be managed by selected private sector investors under its Value-Added Concession, VAC, arrangement.

The 12 highways according to the document reviewed by Vanguard represent merely 5.6 percent or 1,963 kilometres of the country’s 35,000 km federal highway network.

The document estimates that not less than N1.34 trillion of private sector investment would flow into the highways while no fewer than 50,000 direct jobs and 200,000 indirect jobs would be created by the concessioning of the highways to the private operators

“It’s not really about revenue; it is about the expected injection into the economy. The estimated private sector investment required for the development and maintenance of the 12 routes is N1.34 trillion and the impact such investment will have on the economy cannot be overstated.

“The anticipated private sector investment will stimulate thousands of job opportunities for Nigerians as the Highway Economy comes alive along federal highways.

A minimum 50,000 direct jobs and over 200’000 indirect jobs are envisaged to be created spanning construction works, installations, steel fabrication, security, hospitality, vehicle repairs, waste management and administrative work as the Value Chain along the Highway Economy is activated. The combined impact of this mini economy will be a significant boost to our national GDP as productivity and earnings are enhanced,” the ministry document boasted.

Beyond the Value-Added Concession, VAC arrangement, the FMWH is also planning to use another vehicle known as the Unbundled Assets Approvals initiative, UAAI, to maximize the use of its assets on the highways.

Under this category, the ministry plans to issue approvals/permits to individuals to use assets on the right of way on a Build, Operate and or maintain basis.

Both the VAC and the UAAI, according to the ministry aim to provide adequate highway services through the development of revenue-generating assets along the highway.

“This is key to maintaining the functionality of the highway as well as engaging and generating wealth for indigenous small and medium enterprises,” it says.

The ministry explained that it had already obtained the approval of the Infrastructure Concession and Regulatory Commission, ICRC, to go ahead with the implementation of the HMDI which incorporates the concessioning of the highways and the right of way to private sector operators.

Explaining the objectives of the HMDI, the ministry said: “The objective is to develop an eco-system along the federal highway network by bringing multi-dimensional resources of skills, manpower, finance, technology, and efficiency into the National Highway governance.

“Ultimately, this home-grown initiative will be the lasting solution to the development and management of federal highways by introducing order, accountability and profitable entrepreneurship to the operation, management, and maintenance of Nigeria’s 35,000 km federal highways.

“The Initiative is expected to be anchored on private sector engagement via concessioning of economically viable routes to technically and financially capable private companies, through the management and development of the right-of-way. A major hindrance to highway development and management has been a paucity of required funds to service the vast and ever-expanding road network. To negate this handicap, the FMWH proposes the engagement of concessionaires who will manage and develop the right of way, whilst maximizing its commercial potential.

“The main objective of the Initiative is to attract expertise and sustainable investment/funding in the development of road infrastructure and to maximize the use of assets along the Right of Way and develop other highway furniture,” the ministry pointed out.
The government, according to the document will soon call for bidders in a transparent process that would be conducted in collaboration with the ICRC.

It said: “The Federal Ministry of Works and Housing, in collaboration with the ICRC, will soon advertise the Request for Qualification (RFQ) bidding process for the available categories under the HDMI scheme.

“The process will be transparent to allow the most effective bids to compete vigorously in a process that delivers service and dividend to Nigerians. (technically and financially capable firms/consortiums).

“We are determined to ensure our assets are entrusted into capable hands. Therefore, interested persons, companies and groups are advised to

Form consortiums of construction/road maintenance companies, financiers, toll operators, rest house operators, advertising companies, lane marking experts, refuse managers and other partners.”
Some of the revenue-generating assets and highway services being targeted by the ministry are: Toll plazas, weighbridges, advertising assets, directional signage structures and space, street lighting with advertising space and open spaces, including but not limited to truck parks and rest areas, refuse management, towing services, highway monitoring and emergency services.

The ministry made it clear that it was carrying out the new initiative since it has a legal framework under the Federal Highway Act, which vests the Minister of Works and Housing with authority over federal highway network and empowers him to administer tolls on federal highways.

Besides, the ministry said that the Infrastructure Concession Regulatory Commission (ICRC) is mandated by law with regulatory oversight over Ministries, Departments and Agencies in developing bankable PPP projects, pointing out that the ICRC worked closely with it in the conception of the initiative.

“The ICRC has just issued a Certificate of Compliance to the Ministry of Works and Housing, what this means is that the ministry has met all the conditions necessary to proceed to the next stage of procurement of the HDMI scheme.

“So, we are about to kick-off with the pilot phase of the HDMI scheme. In the first phase, the government is proposing the concession of 12 selected federal highways to private sector investors, under the Value-Added Concession, VAC arrangement”.

SOURCE:https://www.vanguardngr.com/2021/02/fg-plans-tolling-on-12-highways/amp/

I no see Kaduna to Kano road?that route will generate so much money to the country

ObabyObaby:
I no see Kaduna to Kano road?that route will generate so much money the country

I believe it will be added too. Not just Kaduna to Kano, but Abuja to Kano. That will help in keeping the road in good shape

Grgton:
he asked you a reasonable question

he ignored the beautiful comparism the guy was giving him and started spewing nonsense? This people believe that all us should stupid at the same time, what exactly have igboman enjoyed in this administration to warrant paying toll gate fees?

Should have been done ages ago

Smart thinking

christistruth01:

FG should also use the Tolls Collected to hire people who will Patrol and secure the highways All the time including using drones and CCTV

Grgton:
he asked you a reasonable question

shaatapp

flokii:
Like I don't get.. why will govt. tax commuters on highways? on what grounds??
The only time you toll say a highway is if it's newly constructed and govt. needs to recoup the money (over a stipulated period of time).

What exactly is wrong with the present APC cabinet members? It's like they are taking Nigerians for a ride or something. Diesel has gone up to #700, PMS is approaching #400 and prices of goods have doubled in the market, yet minimum wage hasn't increased.

Mr man, most of the good road you are seeing in UK are manage by private agencies. If Nigeria should hand over infrastructures development to private agencies, I promised you 80% of our infrastructure problem will be solved in 2 years.
It is better we have good road that are tolled than not having the road.

dejol88:


According to the report, if I am travelling from Lagos to owerri a distance of 538km , I will pay toll in Benin to asaba, asaba to onitsha via the new constructed bridge and finally pay toll from onitsha to owerri.

But my good friend shehu will leave same Lagos to Kano about 987km but will only pay toll between lokoja to Abuja.

You see why some of us feel Nigeria is full of injustice.

so you didn't see illorin- jebba, Kano portiskum, Abuja- akwanga, Kaduna to Kano? Even Abuja -Kaduna road is there.
This issues of ethnicity will surely make you look stupid.

Hmmmmm

Are they planning to build another road or it's the bad road they plan on tolling?

Some will be far profitable than others

Use the same allocation model used in appointing service chiefs and other promient positions to allocate the toll. The dot in the circle is to pay more.

Miracle2022:
Mr man, most of the good road you are seeing in UK are manage by private agencies. If Nigeria should hand over infrastructures development to private agencies, I promised you 80% of our infrastructure problem will be solved in 2 years.
It is better we have good road that are tolled than not having the road.

Bros.... I have 2 questions for you....
1. If private companies would be more efficient infrastructure managers, why was the construction of these roads not concessioned to them in the first place instead of government incurring massive debt?
2. Where in this country has public roads been efficiently managed by private tolling companies in the past?

Tolling the highways is a good idea for keeping roads well-maintained and to a large extent, safe; the fear we all have is actually seeing/feeling the positive impact and it not being just another scheme to empower their friends in high places who will increase their wealth through the sweat of poor Nigerians. I am interested in the jobs it will create under the private companies, I wish the agreement signed with the private companies can also touch on welfare of the people who will get the direct jobs so that these companies don’t employ people and pay them poorly.

Hmmm

Just 12?

FG needs 2 borrow MONEY from citizens forcefully

What about Abuja-Kaduna express road? Won't they toll that one?

So it’s 12? Thought it’s only the second Niger bridge according to some forever ungrateful mob.
Anyways, nothing wrong in tolling as long as there’s an alternative road that is free.

Quitam:


You are getting it twisted. It's not everything that should be bifurcated using this northerner/southerner appelations pls. There are southerners that ply northern roads more than the south and vice versa too. Remember these are not rural roads, but major ones

Not true bro... rather you are the one who has chosen not to be open minded in ur analysis, what that actually means is that there will be more hike on the price of goods and services in the southern region than northern region as a result of toll formula that seems to favour the north than S.S and S.E....

And the busiest road Lagos-Ibadan is not on the list