The Federal Government has requested that private sector partners involved in the Highway Development and Management Initiative (HDMI) present proof of funds to confirm their financial capacity to execute and complete their assigned projects without delay.
This requirement is to ensure that concessionaires have the resources necessary to proceed with full mobilisation once agreements are finalised.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, delivered this directive during a meeting with members of the concessionaire consortium in Abuja on Wednesday.
According to Edun, the demand was conveyed on behalf of the Minister of Works, Engr. Dave Umahi, who stressed the need for assurance that all concessionaires are financially positioned to meet their obligations under the agreement.
“He [Umahi] said he would like to ensure, as part of your endeavour and submission, that you provide proof of funds so that the regulator, the concessioner, and the government can be certain that concluding the agreement leads to immediate mobilisation,” Edun said.
He noted that the government was unwilling to have funds tied up without productive deployment.
“Subject to that obvious qualification,” he added, “we would like to hear definitively about your readiness to fund and implement the concession agreements.”
Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, told the consortium that the government is eager to act swiftly.
Kola Karim, who leads the MOTA-ENGIL/Africa Finance Corporation (AFC) consortium, welcomed the government’s renewed urgency but expressed concern over delays in documentation processes.
Karim stressed the need for enforceable, simplified C2-type documentation that global and local financial institutions can rely on to determine the “fundability” of projects.
“There’s a lot of interest from international investors,” he stated, “but the timeframe has dragged on too long. Capital is looking for returns, but it’s not going to wait endlessly for Nigeria to get serious.”
He said the recent signing of one addendum was appreciated but called for the same to be done for other concessionaires. “This way, we all have the relevant documentation to progress towards handover dates and full site mobilisation.”
Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh, acknowledged the issues raised by the consortium and pledged the government’s commitment to resolving them. “As a country, we are committed to seeing this project through. This has been demonstrated by the handover and mobilisation to site of the Benin-Asaba Road.”
Ewalefoh pointed out that while the government is ready to support expedited implementation, concessionaires must also understand the weight of public trust involved. “We need to ensure that the necessary capacity, expertise, and funding are in place. We’ve had litigations in the past from projects where concessionaires failed to meet obligations. We do not want to repeat those mistakes.”
He called attention to the fact that the HDMI was launched in 2021 and four years later, full mobilisation has still not occurred. “This delay is painful,” he said. “And yet we have already launched HDMI Phase 2. We must resolve the outstanding issues now.”
Ewalefoh assured the private sector that the ICRC is open to dialogue and ready to support negotiations or clarifications that would remove obstacles and ensure transparency. “We must not be seen to support one party and hold back others. We are here to ensure fairness across the board.”