FG Okays N610bn Highway Projects, 600 Housing Units For Armed Forces

• Clears reconstruction, rehabilitation, PPP concessions for major roads

Deji Elumoye in Abuja

The Federal Government on Wednesday approved contracts and public-private partnership (PPP) concessions valued at over N610 billion for major road infrastructure projects nationwide.

It also okayed the purchase of 600 four-bedroom terrace duplexes in Abuja for personnel of the Armed Forces.

Minister of State for Works, Bello Goronyo, who disclosed this to newsmen after the Federal Executive Council (FEC) meeting at the State House, Abuja, explained that the approvals cover the reconstruction, rehabilitation and upgrading of major federal roads, alongside concessions aimed at mobilising private-sector investment for the development and operation of critical road infrastructure.

He added that FEC also approved the direct purchase of the 600 housing units at Bristol City Development, Life Camp, Abuja, as part of the Federal Government’s programme to improve the welfare of military personnel through the provision of decent accommodation.

The Minister said the highways approvals were part of the Tinubu government efforts to speed up the rehabilitation and expansion of the nation’s road network while increasingly leveraging private-sector capital and expertise through PPP arrangements.

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

According to him, the contract sum, which includes 7.5 per cent Value Added Tax (VAT), has a completion period of two years

FEC also ratified the award of a N54.118 billion variation/change order for the rehabilitation of the road project earlier presented to the Council, as part of efforts to address changes in the scope and cost of the work.

Goronyo said the approvals reflected the Federal Government’s determination to tackle longstanding infrastructure deficits on strategic federal highways and improve connectivity between states and economic centres.

Beyond conventional contract awards, the Council considered and approved PPP arrangements designed to bring private financing and operational expertise into the development, rehabilitation and maintenance of federal highways.

He said the PPP concessions were intended to reduce the pressure of road infrastructure development on public finances while ensuring that important transport corridors received the investment required to bring them to acceptable standards.

The Minister explained that the Federal Government was pursuing a combination of direct budgetary funding and private-sector participation to close the country’s infrastructure gap, particularly at a time when the cost of road construction and rehabilitation had risen substantially.

The concessions would allow private investors to finance, develop, operate and maintain designated road infrastructure under agreed terms, while ownership of the assets remained with the Federal Government.

According to the Minister, the road projects considered by the Council cut across different parts of the country and are expected to improve mobility, reduce travel time and vehicle operating costs and facilitate the movement of agricultural produce, manufactured goods and other commodities.

The government also expects improved highways to strengthen interstate commerce and enhance access to markets and communities along the affected corridors.

Goronyo said the Ministry of Works would continue to ensure proper supervision of the projects and compliance with the specifications and timelines approved by the Council.

Also briefing, Housing and Urban Development Minister, Dr Muttaqha Rabe Darma,  said FEC approved a memorandum presented by his ministry seeking approval for the direct purchase of 600 four-bedroom terrace duplexes at Bristol City Development, Life Camp, Abuja.

According to him, the houses are to be allocated to personnel of the Armed Forces as part of President Tinubu’s commitment to improving the welfare and living conditions of servicemen and women.

The Minister described housing as a critical element of the welfare package for military personnel, stressing that providing suitable accommodation would contribute to the government’s broader efforts to improve conditions of service in the Armed Forces.

Darma said the latest approval was a continuation of the administration’s housing intervention for military personnel and followed an earlier approval granted by the Council last year.

“Today at the Council, the Federal Ministry of Housing and Urban Development presented a memo for the Council to consider and approve direct purchase of 600 units of four-bedroom terrace duplexes at Bristol City Development, Life Camp, Abuja, for the Armed Forces”

The President, he said, has placed more emphasis on the welfare of members of the Armed Forces, with housing identified as one of the areas requiring sustained government intervention.

“Mr President is committed to seeing to the improvement of the welfare of the Armed Forces. Housing is an important factor in seeing that the welfare of our servicemen is established and improved”.

He recalled that FEC had last year approved 1,556 housing units for Armed Forces personnel in the Deidei area of the Federal Capital Territory.

The additional 600 units approved on Wednesday brings the number of housing units so far approved under the military housing intervention to 2,156.

According to Darma, the approvals form part of a larger programme targeting the delivery of 10,000 housing units for personnel of the Armed Forces.

“This memo that we presented today is a follow-up to a memo we presented earlier last year, where 1,556 units of housing were also approved for the Armed Forces at Deidei area in the Federal Capital Territory”, he said.

The Minister said the initiative underscored the administration’s determination to address housing needs across different sections of the Nigerian population, including those serving in the military.

He added that the Ministry of Housing and Urban Development would continue to pursue programmes aimed at expanding the national housing stock and improving access to decent accommodation.

Darma said the administration remained determined to meet its responsibility of expanding access to housing for different strata of society.