Nigerian Govt Projects 200,000 Jobs From Road Concession Arrangement

The Nigerian Government has projected that a minimum 50,000 direct jobs and over 200,000 indirect jobs would be created from the highway concession under the new Highway Development and Management Initiative (HDMI).

The Federal Ministry of Works and Housing (FMWH) said about N1.34 trillion is expected from the private investments when the full concession of the 12 roads takes off.

The Ministry, in a document released by its Director of Press and Publicity, Boade Akinola, noted that “it’s not really about revenue, it’s 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.

“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 FMWH, in its bid to halt the financial challenges, said it was proposing the engagement of concessionaires who will manage and develop the right of way and maximize 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 maximise the use of assets along the Right of Way and develop other highway infrastructure,” it stated.

Nigerian Govt Projects 200,000 Jobs From Road Concession Arrangement
Minister of Works and Housing, Mr. Babatunde Fashola, SAN

According to the Ministry, 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.

Speaking on how the scheme would be executed, the Ministry explained that there are two categories under the HDMI; the Value-Added Concession initiative (VAC) where the road pavement and entire right of way is concessioned for development and management by the concessionaire; and the Unbundled Assets Approvals initiative, (UAA).

Under the UAA, it noted that approvals/permits would be issued for individual assets on the right of way on a build, operate and or maintain basis.

“Both approaches 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 said.

Some of the revenue generating assets and highway service, according to the ministry will include toll-plazas, refuse management, weighbridges, towing services, directional signage structures with advertising space, emergency services, street-lighting with advertising space, among others.

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