FG, Highway Concessionaires Review Agreements to Avert Litigation

Pollyn Alex
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In a strategic move to strengthen public-private collaboration and maintain national infrastructure stability, the Federal Government of Nigeria has commenced a comprehensive review of its agreements with highway concessionaires to prevent potential legal disputes and ensure mutual compliance.







The initiative, led by the Federal Ministry of Works in collaboration with key concession stakeholders, is aimed at resolving lingering contractual concerns, clarifying financial responsibilities, and enhancing the long-term viability of concessioned road projects under the Highway Development and Management Initiative (HDMI).







Speaking during a high-level meeting in Abuja, Minister of Works, Senator David Umahi, emphasized the government’s commitment to upholding transparency, fairness, and investment protection in its partnerships with private investors.







“We recognize the need to reassess certain clauses in the concession agreements to protect the interests of all parties involved while ensuring smooth delivery of critical infrastructure. This process is being undertaken in good faith to avert costly litigation and project delays,” the Minister stated.








Several concessionaires have raised issues regarding delays in counterpart funding, tolling rights, and enforcement of agreed milestones—factors which, if left unaddressed, could lead to project standstills or protracted legal action.







A joint technical review committee comprising legal experts, infrastructure finance consultants, and representatives from the Infrastructure Concession Regulatory Commission (ICRC) has been established to audit current contracts and propose adjustments where necessary.







Responding to the government’s gesture, a spokesperson for the consortium of concessionaires lauded the effort, noting that “this dialogue-driven approach shows a renewed political will to strengthen public-private infrastructure development without conflict.”






The review process is expected to run over the coming weeks, with outcomes that could redefine terms across several flagship expressway projects, including the Lagos-Ibadan, Abuja-Kano, and Second Niger Bridge corridors.






This proactive step aligns with the Tinubu administration’s broader infrastructure agenda to attract sustainable private sector investment while mitigating disputes and ensuring timely project delivery for Nigerian road users.
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