FG to Concession Major Highways
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The Federal Government plans to concession major highways under the Highways Management and Development Initiative (HMDI) to improve road infrastructure, Finance Minister Wale Edun announced on Thursday, March 27, during a virtual dialogue in Abuja.
“The Highways Management and Development Initiative would facilitate the concessioning of major highways to improve road infrastructure,” Edun stated.
He highlighted the government’s economic recovery efforts, noting that Nigeria narrowly avoided collapse after exceeding borrowing limits from the central bank. According to him, the economy grew by 3.84 per cent in the last quarter of 2024, close to the annual target of 3.4 per cent.
Edun also reported a 1.3 percentage-point drop in inflation between January and February, with food prices showing signs of decline.
He credited falling petroleum and energy costs to sectoral adjustments and noted that exchange rate stability had eased the cost of imports, benefiting sectors like healthcare and education.
The Minister said Nigeria’s balance of trade had turned positive, with government revenues increasing by 20 per cent in 2024. He also pointed out a declining budget deficit and lower debt servicing costs, which he claimed were improving living standards.
“With this progress, the government is now focusing on further stabilisation and creating an environment that encourages private sector investment,” he said, adding that leveraging technology would boost revenues from government-owned enterprises.
On taxation, Edun disclosed plans to raise the top-end personal income tax rate from 18.6 per cent to 25 per cent while tightening government spending. He identified agriculture, housing, and infrastructure as key drivers of economic growth.
He said the government aimed to enhance farming techniques and introduce a 25-year low-interest mortgage scheme to tackle the housing deficit.
Beyond HMDI, Edun said Nigeria was shifting from concessional and bilateral financing to more affordable funding options, including domestic bond issuance.
He reaffirmed the government’s commitment to clearing pension arrears, revealing that over ₦700bn in bonds had already been issued for pension payments.
While acknowledging Nigeria’s continued reliance on oil, Edun stressed the importance of creating a safer, investor-friendly environment for the sector.
He called for maximising fossil fuel revenues while promoting public-private partnerships, joint ventures, and privatisation to attract investment.
“Now is the time for equity, revenue generation, and private sector participation, both domestically and internationally,” he concluded.
By Kehinde Fajobi
https://firstnewsonline.ng/fg-to-concession-major-highways-edun/?utm_source=chatgpt.com
