LAGOS: The Federal Government, in collaboration with the Exim Bank of China, is aiming to collect tolls amounting to N814.08 billion on the Abuja-Lafia-Keffi-Makurdi Highway in order to repay a $542 million loan used for its construction. This toll target was calculated using the official exchange rate of N1,502 to $1 USD.
The project was executed under the EPC+F financing model, which combines Engineering, Procurement, and Construction (EPC) services with financing solutions. The “plus F” aspect of the model allows for financing mechanisms such as export loans and credit insurance, helping support the project’s development.
The Nigeria-China Exim Bank loan, which uses the EPC+F model, is intended to finance the construction of multiple roads, although the full list of these projects was not immediately available at the time of writing. One such project is the Keffi-Abuja-Makurdi Expressway, which includes the expansion and dualization of the existing road and serves as the flagship project for the initiative.
The Keffi-Abuja-Makurdi Expressway, valued at $542 million, is being funded with 85% from China Exim Bank and 15% from the Nigerian government.
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During an inspection of the Kaduna section of the Abuja-Kaduna-Kano road, which is currently under construction and expected to be completed by March, Minister of Works, Engr. David Umahi, emphasized that tolling would only apply to fully completed roads within designated economic corridors. He explained, Before we toll any road, we would have 100 percent completion. However, for roads completed in the past, if they are deteriorating and we’re still working on certain sections, we will engage with stakeholders. One of the main issues with our roads is the lack of maintenance, and we need the private sector to help with this maintenance.
Umahi further clarified, “For now, we are not tolling any road that isn’t completed.”
The Federal Government has previously announced plans to establish toll gates on only 5,050 kilometers of its 35,000 kilometers of federal roads. This decision followed the Federal Executive Council’s approval to reintroduce toll gates on federal highways in 2021. The toll gates will not only generate revenue for road maintenance but also help repay investors involved in constructing or completing roads under the Highway Development Management Initiative.
In a recent phone interview with Sunday Vanguard, Barr. Orji Uchenna Orji, Special Adviser (Media) to the Minister of Works, explained that sections of the Keffi-Akwanha-Makurdi road were funded under the EPC+F model, with 85 percent of the funding provided by the China Exim Bank and the Nigerian government contributing 15 percent. He noted that the roadwork was satisfactorily executed by China Harbour Ltd. As part of the agreement, tolling will be implemented to allow for the recoupment of funds, which will help the government repay the loan.
Orji also stated that the decision on which roads to toll is an ongoing process.
