Bismarck Rewane

The concession of Nigeria’s major roads will play a crucial role in reducing inflation, increasing productivity, and strengthening the country’s currency, according to the Managing Director of Financial Derivatives Company Limited, Bismarck Rewane. Speaking on Channels Television’s Business Morning show on Monday, Rewane, who is also a member of the Federal Government’s Highway Development and Management Initiative (HDMI), highlighted the economic benefits of allowing private sector investment in road infrastructure.

He explained that bad road conditions contribute significantly to rising inflation by increasing transportation costs, limiting access to markets, and causing post-harvest losses for farmers. When goods cannot be transported efficiently, supply chain disruptions lead to higher prices, ultimately weakening the purchasing power of consumers. Improved road infrastructure, he argued, would facilitate smoother transportation, leading to lower costs and a reduction in inflationary pressures.

A stable transportation network, Rewane stated, would also contribute to strengthening the Naira. He pointed out that inflation and exchange rate volatility are closely linked, as persistent price increases often lead to currency depreciation. By reducing transportation costs and enhancing productivity, road concessions could help stabilize the economy and provide a stronger foundation for the national currency.

Security concerns were also addressed in his remarks. The economist noted that better-maintained roads, equipped with surveillance systems such as drone technology and controlled access points, would significantly curb the growing incidents of kidnapping along Nigeria’s highways. A well-secured road network, he emphasized, would encourage economic activities by making travel safer and more predictable.

Rewane further explained that under the concession arrangement, private investors would be responsible for road construction and maintenance for a period of 25 years. During this period, they would collect toll fees while also remitting a percentage of their earnings to the government. This model, he argued, aligns with global best practices, as it reduces the financial burden on the government while ensuring that roads remain in good condition.

Improved road networks, he added, would lead to significant reductions in travel time, boosting efficiency across various sectors. Using an example, he noted that the current travel time between Benin and Asaba, which takes about three to four hours, could be reduced to just 45 minutes once roads are properly maintained.

With inflation continuing to be a major economic challenge in Nigeria, Rewane believes that road concessions and toll gate systems could provide a sustainable solution. By easing transportation difficulties, reducing security risks, and ensuring a steady flow of goods, this initiative, he emphasized, would not only improve economic productivity but also provide long-term benefits for both businesses and citizens.