FEC Approves N610bn for New Roads, Toll Concessions Nationwide

The Federal Executive Council has approved roughly N610 billion in new road contracts and infrastructure concessions across several states, part of a renewed push by President Bola Tinubu's administration to close Nigeria's infrastructure financing gap through both direct spending and private capital.

Minister of State for Works Bello Goronyo announced the approvals following the fourth Federal Executive Council meeting on August 19, chaired by President Tinubu. The biggest single award, worth N159.8 billion, covers the Ado Ekiti-Iyin-Aramoko-Itawure road to the Osun State border and was given to CBC Global Civil and Building Construction Nigeria Limited on a 24-month timeline. Other approvals include a combined N74.5 billion for variation works on the Abeokuta-Iboro-Ilaro road and the second phase of the East-West Road in Rivers State, N54.5 billion for a section of the Ado-Ekiti to Afe Babalola University road, and N94.2 billion for later phases of the Ilara-Iselu road in Ogun State.

Beyond direct contracts, the council also approved three long-term concessions structured as public-private partnerships funded entirely by private investors. These include a 40-year concession for the Suleja-Minna Road, a 25-year concession for the Lagos-Ibadan Expressway, and a 50-year deal for a new trailer park in Abia State. Officials say the concession model is designed to attract private capital and technical expertise into road maintenance and new construction without adding directly to government expenditure.

The road package comes as the federal government leans more heavily on private financing to tackle Nigeria's infrastructure deficit, with officials and economists projecting the economy could grow around 4.2 percent in 2026. Analysts have long flagged inadequate road networks as a drag on trade and manufacturing costs, particularly on corridors linking farming regions to southern ports and markets.

Source: Businessday NG