Lagos Unveils Plan To Finance Road Infrastructure

Lagos State Government has proposed a new approach to road infrastructure management, where the main traffic-carrying roads in the state will be financed through funds generated from user charges, including tolls.

Gatekeepers News reports that the new initiative will be achieved with the help of an autonomous agency that will be established for this purpose.

The details of the initiative are stated in the recently unveiled Lagos State Transport Policy, particularly in Section 4.2, which focuses on road infrastructure.

The policy highlights the state government’s goal of improving the serviceability of the road network through timely maintenance, upgrading critical elements, and adding new links to enhance connectivity.

In other to make this work, the government plans to introduce new institutional and financing arrangements for road management, based on international best practices and anchored on commercial principles, such as the proposed user charges and tolls.

A part of Section 4.2 read “The Government will adopt a more commercial approach to the management and financing of the State’s Road network in line with international good practice.”

“A key aspect of this approach is to create an autonomous Road Agency for the management of the main traffic carrying roads in the State with financing generated from road user charges, including tolls.”

According to the policy, the state government considers financing major roads through user charges and tolls to be worthwhile, given the proven efficiency gains from this approach observed elsewhere.

It also stated that the government will conduct detailed studies on financing, cost recovery, and institutional arrangements in the transport sector.

Table 5.1.2.7 of the policy which provides further insight into the state government’s proposal to establish an autonomous agency for managing the main traffic roads in the state, outlines the timeline for implementing this new approach to road infrastructure management.

First Two Years: The policy indicates that within the first two years, the Lagos State Government will prepare the Study Terms of Reference (TOR) for the Financing and Cost Recovery Study, launch the procurement process, and commence the study.

Two to Five Years: Between two to five years, the study will be completed, and reviewed, and recommendations will be approved. This will be followed by the implementation of road charges, including tolls, on major traffic-carrying roads in Lagos State.

The policy noted that the state government acknowledges that the current condition of almost all major traffic-carrying roads in the state is not as good as desired. Their maintenance is often delayed or below the desired standard due to inadequate planning and funding constraints.

The policy further stated that the Lagos State government hopes that the implementation of this proposal will lead to sustainable financing for road infrastructure, minimizing funding constraints, and enabling timely upgrades and additions to the road network in areas experiencing traffic growth.