Business

FG flags off fully private-financed 125km Benin–Asaba Superhighway project 

The Federal Government has officially flagged off the 125km Benin–Asaba Superhighway Project which will be fully financed by Africa Plus Partners under a Public-Private Partnership (PPP) model.

The project, located in Edo State, is a dual-carriageway, solar-lit superhighway and is expected to drive economic growth and connectivity in the region.

The disclosure was conveyed in a statement posted on the official X (formerly Twitter) account of the Ministry of Finance, on Sunday.

“The Federal Government of Nigeria, in collaboration with Africa Plus Partners, has officially flagged off the 125km Benin–Asaba Expressway Project in Edo State—an ambitious, dual-carriage, solar-lit superhighway that is fully financed by the private sector under a Public-Private Partnership (PPP) model,” the statement read in part.

Speaking during the ceremony, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the project as a milestone in infrastructure financing.

He highlighted the significance of the private sector’s role, stating, “This project is not reliant on direct federal funding. The Africa Plus Consortium, backed by credible investors, has committed the full capital under the enabling policies of President Bola Tinubu.” 

The statement further emphasized that the project forms part of the current administration’s Renewed Hope Agenda, which emphasizes leveraging innovative financing frameworks to deliver critical infrastructure.

More insight  

Minister of Works, Senator David Umahi, highlighted the project’s cashless model, emphasizing its potential as a template for future development.

Representing President Tinubu at the event, Edo State Governor, Senator Monday Okpebholo, commended the financing structure, noting that it reflects investor confidence in Nigeria’s economic prospects.

He added, “This is a legacy project. The willingness of private investors to risk their capital on this initiative shows strong belief in the president’s vision and the economy’s future.” 

According to Edun, the Federal Government plans to replicate this PPP model for infrastructure projects nationwide, ensuring sustainable financing mechanisms that minimize fiscal burdens. This approach underscores the administration’s commitment to bridging Nigeria’s infrastructure deficit while unlocking long-term economic value.

What you should know  

The Federal Government has previously highlighted the challenges of maintaining Nigeria’s 35,000-kilometre federal road network through annual budgets alone.

  • In February, the Minister of State for Works, Muhammad Bello Goronyo, noted that years of neglect, inflation, and security concerns have exacerbated the nation’s infrastructure deficit, emphasizing the need for alternative funding models
  • The adoption of a fully private-financed approach for the Benin-Asaba Superhighway marks a significant step toward addressing this funding gap. By leveraging private capital, the project reduces dependence on federal budgets while advancing critical infrastructure development.

It is anticipated that roads financed under private-sector arrangements, such as the Benin-Asaba Superhighway, will be tolled upon completion.

This tolling model is expected to generate the revenue needed to recover construction costs and ensure the sustainability of such projects.


Enews Nigeria

About the author

Collins Nnebedum

Collins Nnebedum is a seasoned writer with a knack for delivering insightful analysis on current affairs and breaking news. His dedication to factual reporting makes him a trusted voice on eNews Nigeria.