New Telegraph

FG Targets ₦814bn Toll Revenue To Repay $542m China Exim Bank Loan 

The Federal Government of Nigeria, in partnership with the China Exim Bank, is set to generate approximately ₦814.08 billion in toll revenue from the Abuja-Lafia-Keffi-Makurdi Highway to repay a $542 million loan used for the road’s construction.

The estimated amount was calculated based on the prevailing official exchange rate of ₦1,502 to $1.

The loan agreement follows the EPC+F financing model, which integrates Engineering, Procurement, and Construction (EPC) services with financing solutions such as export loans and credit insurance.

This model allows contractors to secure funding for the project while handling its execution.

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Under this arrangement, China Exim Bank provided 85 percent of the funding, while the Nigerian government contributed the remaining 15 percent.

The Keffi-Abuja-Makurdi Expressway, which involves the expansion and dualization of the existing carriageway, was one of the major road projects funded through this method.

Speaking during an inspection of the Abuja-Kaduna-Kano expressway, the Minister of Works, Engr. David Umahi, clarified that tolling would only commence once roads are fully completed.

He emphasized that no toll collection would be introduced on roads still under construction, stating that a major challenge affecting Nigerian roads is the lack of maintenance.

Umahi explained that in cases where a completed road is already deteriorating, an agreement would be reached with stakeholders to introduce tolling as a measure to sustain road maintenance.

He added that where a 200-kilometer road has been completed up to 150 kilometers, discussions with the public would help determine the feasibility of tolling, as leaving the finished portions without maintenance could lead to further deterioration.

The Federal Government had earlier approved the reintroduction of toll gates on specific roads, with plans to toll only 5,050 kilometers of dual carriageways out of the country’s 35,000 kilometers of federal roads.

This decision, approved by the Federal Executive Council, aligns with the government’s strategy to generate revenue for road maintenance and repay investors who have financed highway projects under the Highway Development Management Initiative.

Special Adviser to the Minister of Works, Barr. Orji Uchenna Orji, confirmed that the Keffi-Akwanga-Makurdi highway was executed under the EPC+F model by China Harbour Ltd.

As part of the agreement, tolling would be introduced to facilitate the repayment of the loan. He noted that discussions on which roads to toll are ongoing, with several projects under review.

He also disclosed that the minister is currently in Benue State for inspections, adding that specific details on additional tolling plans would be determined after consulting relevant officers and documents.

The implementation of toll gates on Nigeria’s highways is expected to boost infrastructure funding while ensuring the sustainability of completed roads.

The government has reaffirmed its commitment to executing road projects efficiently while involving private sector participation in their maintenance and funding.

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