‘How HDMI will enhance FG’s infrastructural devet drive’

Babatunde Fashola


The move by the Federal Government to officially commence the procurement process for the concessions under the Highway Development and Management Initiative (HDMI) has been tipped to have a great impact in facilitating further development of Nigeria’s expressways network.

Speaking on the new initiative at the official handover of the Certificate of Compliance by ICRC, Minister of Works and Housing, Mr Babatunde Fashola, said that with the receipt of the Certificate of Compliance that HDMI would facilitate further development of Nigeria’s federal highway network by bringing in investment to improve efficiency, accountability, and profitable entrepreneurship to the operation, management, and maintenance of all assets within the Right of Way on the highways.

Fashola said that the initiative has further affirmed the federal government’s commitment to infrastructure development funding which has been driven by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Order of 2018, the Presidential Infrastructure Development Fund (PIDF) being managed by the Nigeria Sovereign Investment Authority (NSIA) and the SUKUK Fund.

He noted that through such initiatives, the Federal Government has been leveraging private sector funding and participation in the development of critical infrastructure across the country and the HDMI is another innovation developed to attract the private sector.

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The Minister explained that the HDMI was a fully home-grown idea that would deliver a safer and enjoyable travel experience for Nigerian road users as travel time would be shortened, cost reduced, and commercial activities stimulated.

Explaining further, he said the HDMI is an indigenous Land Value Capture scheme conceived by the Ministry to develop Nigeria’s network of federal highway corridors and boost economic development along the Right of Way.

He added that it would be executed in two parts comprising Value Added Concession (VAC) and Unbundled Assets Approval (UAA).

On the economic benefits, Mr Fashola said: “Apart from infrastructure and assets development, thousands of jobs will be created for Nigerians as the initiative will open up the highway economy with opportunities in various economic activities including fabrication of gantries and directional signages with advertising opportunities, towing van operations and auto repair stations, operation of rest areas and emergency services, among others.”

Continuing, he said: ” When fully operational road users will now enjoy first-class facilities on federal highways with directional signages, well-equipped rest areas, round-the-clock security patrol, and ambulance services for emergencies”.

In his welcome address the Permanent Secretary, Federal Ministry of Works and Housing Babangida Hussaini said that the development, expansion, and maintenance of federal highways have increasingly become a herculean task to the government due to dwindling revenues and other compelling public service obligations.

He said: ”It is to mitigate this challenge that the Ministry has adopted the option of exploring the Public-Private Partnership (PPP) arrangement, which seeks to employ the private sector’s technical competencies, managerial capabilities, and financial resources to salvage the federal roads networks.”

According to he, the PPP arrangement in the management of our highways will bring order, efficiency, accountability, and profitable entrepreneurship to the operation, management, maintenance of all assets within the nation’s right of way.

Earlier, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Engineer Chidi Izuwah represented by Barr. Joel Micheal Ohtani, who presented the certificate to the Minister in Abuja on Friday 29th January 2021 said that the initiative would enable private sector participation in the management and maintenance of road assets through Public-Private Partnership (PPP) arrangements.

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