FEC approves N610bn works projects, PPP poncessions

Mohammed Goroyo

The Federal Executive Council (FEC) has approved contracts and public-private partnership (PPP) concessions valued at more than N610 billion for major road infrastructure projects across the country, the Minister of State for Works, Bello Mohammed Goronyo, has disclosed.

The approvals, which cover road reconstruction, rehabilitation, upgrading and the development and operation of critical highway infrastructure, are part of the Federal Government’s efforts to accelerate road construction while leveraging private-sector capital and expertise.

Goronyo disclosed this while briefing journalists on the outcome of Wednesday’s FEC meeting in Abuja.

According to him, the Council ratified the award of a N159.826 billion contract for the reconstruction of the Ado-Ekiti–Iyin–Aramoko–Itawure–Osun State border road, awarded to Messrs CBC Global Civil & Building Construction Nigeria Limited.

The project, which includes 7.5 per cent Value Added Tax (VAT), has a completion period of 24 months.

The Council also ratified the award of a N54.118 billion variation/change order for the rehabilitation of the Abeokuta–Iboro–Ilaro Road in Ogun State.

The variation, awarded to Messrs Strabic Construction Limited, involves changing the pavement design under the original contract from rigid pavement, Continuously Reinforced Concrete Pavement, to asphalt or flexible pavement.

Also approved was a N74.515 billion contract for Phase II of the upgrade of 15 kilometres of the East-West Road, Section III, from Port Harcourt (Eleme Junction) to Onne Port Junction Road in Rivers State.

The contract was awarded to Messrs RCC Nigeria Limited, with a completion period of nine months.

In Ekiti State, Council ratified the award of a N54.519 billion contract for Phase II of the rehabilitation of the Ado-Ekiti–Afe Babalola University Road along Ado-Ijan/Iluomobi-Imesi–Ondo State border road, Section II, in favour of Messrs S & M Nigeria Limited.

Similarly, FEC on Wednesday approved a N94.236 billion contract for the construction of the Ilara–Iselu Road, Phases II–V, in Ogun State, to be executed by Messrs JRB Construction Company Limited within 24 months.

The road contracts approved by Council amount to approximately N437.21 billion.

Beyond direct government-funded road projects, Council also approved major PPP concessions designed to attract private capital into the development and management of highway infrastructure and trailer parks.

Goronyo said the Ministry of Works had packaged six PPP projects comprising Design, Finance, Build, Operate and Maintain (DFBOM), Design, Finance, Build, Operate and Transfer (DFBOT), and Operation and Maintenance (O&M) concessions.

He explained that three of the projects required FEC approval because their project costs exceeded the relevant approval threshold.

Under the arrangement, the concessionaires are expected to provide 100 per cent of the project funding, while operating and maintaining the infrastructure for agreed concession periods.

One of the approved projects is the DFBOM concession of the Suleja–Minna Road, Dikko–Maje section, covering 7.9 kilometres, to be undertaken by Messrs Graciatech Engineering Nigeria Limited at an estimated cost of N56.752 billion over a 40-year concession period.

Council also approved the O&M concession of the Lagos–Ibadan Expressway, in favour of Messrs LIB Concession Group, at a project value of N96.425 billion and a 25-year concession period.

The third project is the DFBOT concession for the Greenfield Trailer Park at Aro-Ngwa in Abia State, to be developed by Messrs Greg Jane International Limited at a cost of N19.703 billion, with a 50-year concession period.

The three PPP projects have a combined value of approximately N172.88 billion.

The latest approvals bring the combined value of the direct road contracts and the three PPP concessions to about N610.09 billion.

Goronyo said the PPP initiative was in line with the Federal Government’s policy of mobilising private-sector capital and expertise for the development, operation and maintenance of critical national infrastructure.

He recalled that the Council, at its EC(2026) third meeting on June 29, 2026, had ratified the award of the Full Business Case (FBC) and issuance of the FBC Compliance Certificate for the concession of the Abuja–Kaduna–Kano Expressway to Messrs Aspect Concession Company Limited.

He said the latest concessions represented a continuation of the government’s strategy to reduce pressure on public finances while ensuring that critical road infrastructure received the investment required for effective development, operation and maintenance.

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