Federal Govt Approves N437bn Road Projects, Trailer Park Concessions

The Federal Government has approved and ratified major road construction and rehabilitation contracts, as well as three private-sector concessions for highway and trailer park projects under the Public-Private Partnership (PPP) model.

The Minister of State for Works, Bello Muhammad Goronyo, disclosed this while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu.

Among the approvals is the ratification of the award of contract for the reconstruction of the Ado Ekiti-Iyin-Aramoko-Itawure-Osun State border road in favour of Messrs CBC Global Civil & Building Construction Nigeria Limited.

The project is valued at N159,826,009,999.43, inclusive of 7.5 per cent Value Added Tax (VAT), with a completion period of 24 months.

The Council also ratified the award of variation/change orders for the rehabilitation of the Abeokuta-Iboro-Ilaro Road in Ogun State, under Contract No. 8645, in favour of Messrs Strabic Construction Limited.

The variation/change orders are valued at N54,118,329,686.27, inclusive of 7.5 per cent VAT. They involve modifying the previously approved rigid pavement structure, based on continuously reinforced concrete pavement, under the original contract to asphalt or flexible pavement.

Another approval covers the Phase II upgrade of 15 kilometres of the East-West Road, Section III, from Ch0+000 to Ch15+000, covering the Port Harcourt (Eleme Junction)-Onne Port Junction Road in Rivers State.

The contract was ratified in favour of Messrs RCC Nigeria Limited at N74,514,877,096.33, inclusive of 7.5 per cent VAT, with a completion period of nine months.

Council also ratified the award of the contract for Phase II of the rehabilitation of the Ado-Ekiti-Afe Babalola University Road along the Ado-Ijan/Iluomobi-Imesi-Ondo State border road in Ekiti State, Section II.

The reviewed contract is in favour of Messrs S & M Nigeria Limited at N54,518,900,962.31, inclusive of 7.5 per cent VAT.

The Council further ratified and approved the award of the contract for the construction of the Ilara-Iselu Road, Phases II-V, in Ogun State.

The contract was awarded to Messrs JRB Construction Company Limited at N94,236,058,449.46, inclusive of 7.5 per cent VAT, with a completion period of 24 months.

The Ministry of Works also secured Council approval for three projects under the concession programme for trailer parks and highways, with 100 per cent funding by the concessionaires under the PPP model.

One of the projects is the Design, Finance, Build, Operate, and Maintain (DFBOM) concession for the Suleja-Minna Road, specifically the 7.9-kilometre Dikko-Maje section.

The project, proposed by Messrs Graciatech Engineering Nigeria Limited, has a stated project cost of N56,751,700,999.17 and a concession period of 40 years.

Another is the Operation and Maintenance (O&M) concession of the Lagos-Ibadan Expressway, in favour of Messrs LIB Concession Group.

The project cost is stated at N96,425,066,846.08, with a 25-year concession period.

The third is the Design, Finance, Build, Operate and Transfer (DFBOT) concession of the Greenfield Trailer Park at Aro-Ngwa in Abia State.

The project, proposed by Messrs Greg Jane International Limited, has a stated cost of N19,703,380,810.58 and a 50-year concession period.

Goronyo said the three projects were among six PPP projects packaged by the Ministry of Works, comprising DFBOT/DFBOM concessions of trailer parks and O&M concessions of highways.

He explained that three of the six projects required Federal Executive Council approval because their costs exceeded the applicable approval threshold.

The ministry said the PPP initiative was part of the Federal Government’s policy of leveraging private-sector capital and expertise for the development, operation and maintenance of critical national infrastructure.

The Works Ministry also recalled that the Council, at its third meeting of 2026 on June 29, 2026, under Conclusion 42, had ratified the award of the contract for the Full Business Case and the issuance of the Full Business Case Compliance Certificate for the concession of the Abuja-Kaduna-Kano Expressway in favour of Messrs Aspect Concession Company Limited.