FEDERAL MINISTRY OF POWER, WORKS & HOUSING

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LATEST PRESS
December 22, 2016

Reintroduction Of Tollgates: One Of The Needful Steps For Road Development And Maintenance

Tolling is one of the ways of meeting the critical road and bridge needs of a country, more rapidly than would otherwise be possible with public funds alone, due to both limited and untimely release of public works budgets. Tolls are fast becoming a sustainable way of delivering transportation infrastructure projects, whether public, private or public-private-partnerships funded. It is also note worthy that tolled roads may be funded by accessing capital (debt and equity needed to construct, re-construction or rehabilitate) from commercial market and paid with income generated from tolls over a contractually agreed time frame.

Again, the income from tolling could be used to manage and maintain the road and/or bridge infrastructure and the provision of ancillary services. The Federal Government of Nigeria, through the use of public funds and private road concessionaires, can access this funding option.

Government’s view is that there are substantial benefits to be derived from tolling, provided certain principles are adhered to. Nigeria has long suffered from a sub-optimal road network that imposes significant costs in terms of travel time, vehicle wear and tear and high fatality rates. Limited or poor access resulting from underdeveloped networks also discourages investment and economic development in many regions of the country.

It is worth noting that road tolling is a tried and tested model in many countries. Indeed, road tolling is currently in operation in Nigeria on the newly built Lekki-Epe road and on access roads to major airports nationwide. Nigeria had operated some public tolled roads several years ago which were unfortunately discontinued in 2004 with the exception of some airport approach roads, due mainly to legal disputes, revenue leakages and unmet requirements for maintenance of the tolled roads.

Due to the enormity of the benefits accruable to the tolling system, the present administration of President Muhammadu Buhari received several proposals on the issue of re-introduction of toll gates, as additional source of revenue to government. In view of the dwindling oil prices and the commodity being the mainstay of our economy and by way of ensuring sustainability and maintenance of Federal roads, tolling appears to be a credible option. The re-introduction of tolling, will therefore, serve as a tool for additional revenue to support effective management of the Federal road network.

Additionally, motorable Federal roads and bridges will reduce journey times and travel costs and ensure safer travel for road users. It can also encourage more investment and diversification of commercial activity to outlying areas that are currently not served by an effective trunk network. Importantly, tolls are also equitable because they are paid by those who use the road or bridge rather than from general taxes and a good avenue for job creation for the nation’s teaming unemployed youth.

Now that tolling is once again being considered as a policy option, Nigeria has the advantage of drawing from its past experience and the good practices of other countries applying same to successfully build, manage and maintain its highways through the instruments of tolling and Public-Private- Partnership (PPP). The challenges and experiences from previous concessionaired projects should be well studied to avoid a repetition of past mistakes. The Federal Ministry of Works should draw from the experience of specialist consultants through the Nigeria Infrastructure Advisory Facility and other International Institutions.

During their maiden press briefing, the Minister of Power, Works and Housing, Babatunde Fashola and the Minister of State, Hon. Mustapha Baba Shehuri disclosed that "if we ask everyone to pay a little as our commonwealth and hold those in charge accountable, and use technology…We don’t pay cash, we pay by token or by ticket and money is accountable and will go to the right place ".

On this note, the adoption of technology as professed by the Minister in collecting monies from toll gating will make the system efficient and accountable.

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PHOTO NEWS
January 10, 2018

FIRST FEDERAL EXECUTIVE COUNCIL MEETING OF 2018

Left to Right National Security Adviser MajorGen Babagana Monguno left Minister of Power Housing and Works Babatunde Fashola and Secretary to Government of Federation SGF Mustapa Bossduring the first Federal Executive Council meeting of 2018 presided over by His Excellency President Muhammadu Buhari GCFR on Wednesday 10th January 2018

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POWER NEWS
PHOTO NEWS
July 3, 2018

FASHOLA DELIVERS SPECIAL HERBERT MACAULAY MEMORIAL LECTURE ORGANIZED BY THE UNIVERSITY OF NIGERIA NSUKKA

Hon Minister of Power Works Housing and Guest Lecturer Mr Babatunde FasholaSANleft and Vice Chancellor University of NigeriaNsukka ProfBenjamin Chukwuma Ozumbarightpresenting one of the Laptop computers made by the University of Nigeria to the Hon Minister shortly after he delivered theSpecial Herbert Macaulay Memorial Lectureorganized by the University of Nigeria Nsukka at the Princess Alexandra AuditoriumPAA Nsukka Enugu State on Monday 2nd July 2018

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