Governor Godwin Obaseki of Edo State has signed a N228bn agreement with the Infrastructure Corporation of Nigeria (InfraCorp) and AAA Infrastructure Nigeria Limited (Triple A Infrastructure) for the extensive reconstruction of the Benin-Asaba Expressway.
This transformative road project will be funded by Triple A Infrastructure and InfraCorp, with the Edo State Government serving as an equity investor.
Under the 25-year Highway Development Management Initiative (HDMI) Concession, facilitated by Africa Plus Partners, this partnership is set to revolutionize infrastructure development in the country. Governor Obaseki hailed the agreement as an excellent financing model and called for sustained collaboration between states and the federal government.
Governor Obaseki emphasized the significance of this concession, highlighting the reputable and capable parties involved. He shared a vision dating back three decades, when a committee was established to redesign the pension arrangement in Nigeria.
The aim was to encourage contributory pension schemes and utilize the funds to rebuild the country’s infrastructure. With in excess of N16 trillion in pension savings, these funds can now be invested through transactions like this, fostering Nigeria’s development.
He said, “When a committee was established in 2000 and 2001 to restructure Nigeria’s pension system, the goal was to switch to a contributory pension system and initiate a process of capital formation in the nation by encouraging workers to contribute their pensions, which would then be used to finance the nation’s infrastructure reconstruction.
“Thirty years ago, that was the dream. Comrade Adams Oshiomhole and I were both members of that committee. The Committee was responsible for creating the pension funds that currently exist in the nation. With almost N16 trillion in savings, those pension funds are forced to invest in short-term notes issued by the federal government because they have nowhere else to put their money.
“When more transactions like these start to happen, we will be giving these pension funds the chance to take our savings and invest them in projects that will actually advance Nigeria. For us, this transaction is important, and we hope and believe that it is the first of many to come.
“The Benin-Asaba artery plays a critical role in the Nigerian economy, facilitating the transportation of goods from the port in Lagos to the Eastern and South-South regions. Poor road conditions have resulted in exorbitant costs for transporters and logistics managers, ultimately affecting prices. Spanning 60km within Edo State, this project will address the dire state of the route, bringing relief to the people.”
With the Edo State Government already investing nearly N1 billion in the road’s remedial work, Governor Obaseki reaffirmed their commitment to support the concession and expedite the project. He called upon the Federal Ministry of Works to terminate the Benin-Auchi road contract and follow a similar path of concession, recognizing the limitations of the government’s budget in rebuilding the roads to the required standards.
The CEO of Triple A Infrastructure Nigeria Limited, Mr. Ike Chioke, expressed enthusiasm for the complete reconstruction of the Benin-Asaba Expressway.
“We are going to expand and upgrade the road to a world-class and best standard road,” he declared.
He assured that the project would deliver a world-class road, expanding to 10 lanes in certain sections and setting a new standard. The construction will span from Benin in Edo State to Asaba in Delta State, ultimately connecting to the Second Niger Bridge.
Appreciating the significance of the project, the Managing Director of Triple A Infrastructure, Niran Ajakaiye, said, “Once completed, the revitalized Benin-Asaba Expressway will serve as a valuable asset for Edo and Delta States, enhancing connectivity and fostering economic growth. The partnership, with the Edo State Government as an equity investor, marks a historic milestone in infrastructure development and paves the way for future transformative projects.”
