Home Transportation FG to begin tolling on Lagos-Ibadan expressway, Niger Bridge, others

FG to begin tolling on Lagos-Ibadan expressway, Niger Bridge, others

cbn - Lagospost.ng

The Central Bank of Nigeria (CBN) governor, Godwin Emefiele has revealed that the federal government plans to toll the Lagos-Ibadan Expressway, the ongoing 2nd Niger Bridge, and other roads, to repay loans used to build them.

Emefiele,made this known on Wednesday at the closing ceremony of the 12th Banker’s Committee retreat in Lagos, saying:

“All of the roads will be tolled. And we know that in many other countries in the world, roads are tolled because those projects are commercially viable.

“They (loan) can be refunded with tolls so that maintenance can be done on a regular basis, and people will pay for it and enjoy good roads, and enjoy good facilities because that is the only way we can fund the infrastructure of this country, which is the large amount of money that is needed.”

Emefiele said the money from the tolling at the Lagos-Ibadan expressway, Abuja-Kano road, and the second Niger Bridge would be used to repay loans used to fund the project.

He stated that the three projects are funded by the Infrastructure Corporation of Nigeria (InfraCo).

According to Emefiele, the CBN, African Finance Corporation, and Nigerian Sovereign Investment Authority contributed N1 trillion of InfraCo’s equity, adding that the remaining N14 trillion would be coming from the debt market.

The apex bank governor disclosed that, in order to move forward with funding for those projects, the government approached CBN to provide some kind of bridge funding, which is approximately N170 billion.

“The entire scope of those three projects, I am told is slightly above N1 trillion, but the numbers are being worked on,” Emefiele said.

“And I believe by the time the asset managers effectively come on board, the details of those projects and the remaining aspects of those funding would be coming in through debt and that is where the asset managers would come in with the entire scope and then we would know the detailed cost of those three projects.”

The CBN governor said he is “reasonably optimistic that more than 50 percent or two-thirds of this money is going to be raised locally.

“Before we begin to think about accessing international finance, we would try as much as possible to limit debt for foreign currencies, particularly knowing that some of these projects and revenues are going to be generated with local currency.

“Where foreign currencies are needed, we will also take those and then be able to use them.”

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