• Sunday, March 03, 2024
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BusinessDay

Umahi seeks PPP to bridge financing gap for roads

Road construction: Governors must certify jobs before we make payment, says Umahi

David Umahi, the minister of Works, has stressed the need for public-private partnership (PPP) to provide needed financing for road projects in Nigeria.

Umahi stated this in a meeting with Agbu Kefas, governor of Taraba State, Aliko Dangote, CEO of the Dangote Group, and Ndudi Godwin Elumelu, a former minority leader of the House of Representatives.

The minister in a statement obtained by BusinessDay, noted that a PPP would fast-track road infrastructure revolution and bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of federal highways.

The minister in the statement issued by Orji Uchenna Orji, his special adviser on media, said, “We have been engaging with concessionaires and other private sector organisations on the need for private sector investment on our road infrastructure as done in advanced economies of the world.”

He informed that the ministry in an effort to change the state of road infrastructure in the country, had set up committees to work on the contracts executed by some concessionaires to review the scope and cost implications of the projects executed under the Highway Development and Management Initiative (HDMI).

“It is hoped that investors, local and international, and other organised bodies would take advantage of the willpower of President Bola Ahmed Tinubu’s renewed hope administration to invest in the over 35,000 Km of the national road network being managed by Federal Government of Nigeria.

“This road network carries more than 70 percent of the vehicular traffic, making it a critical infrastructure for the movement of goods and services across the nation. This initiative will trigger economic development, job creation, local content development and wealth creation for the Nigerian population. Mr. President means business with his efforts to prosper our country and make it the pride of the African continent. Your support is critical,” he said.