
The Federal Government has announced plans to implement a cashless tolling system on the Abuja-Keffi Expressway and Keffi-Akwanga-Makurdi Road as part of measures of the Renewed Hope administration to revolutionise road infrastructure development and stimulate economic growth in Nigeria.
Minister of Works, David Umahi, made this known when inaugurating a committee on its implementation in Abuja, stressing that the system was a strategic programme under the Highway Development and Management Initiative aimed at promoting a strong and sustainable transportation ecosystem.
Umahi said “This is one of the cardinal strategies of Mr. President towards realising the desires of our people in the road sector development. Recall that Keffi-Akwanga-Makurdi was executed on EPC + F, and funded up to 85% by China Exim Bank, and the Federal Government paid 15% counterpart funding and was executed satisfactorily by China Harbour Limited.”
He explained that part of the agreement is that they will toll the road and then recoup the money for the Federal Government to pay back the loan segment of the project, saying, it is for the vast strategic economic recovery initiatives and hopes that the committee would leverage on ideals of the Terms Of Reference handed over to them to develop a robust implementation masterplan.
The Works Minister explained that the cashless tolling system will contribute to the economic and social objectives of the Highway Development and Management Initiative, which seeks to attract private sector investment and improve the quality and quantity of road assets in Nigeria.
He therefore tasked the committee with developing a system implementation framework, making recommendations for relief stations and physical environment along the corridors, and proposing practical solutions for toll collection in the Nigerian context.
Earlier, the Head PPP Unit, Federal Ministry of Works, Mrs. Ugwu-Chima Nnennaya stated that the inauguration was part of the statutory responsibilities of the Ministry which has the mandate to attract private sector funding for the development and management of the Federal road network through the Highways Development and Management Initiative (HDMI).
She said, “The HDMI is expected to, among others, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of Federal Highways.”
“This is consistent with the provisions of the ICRC Establishment Act 2005; National Policy on Public-Private Partnership (“N4P”); Federal Roads and Bridges Tolling Policy of August 2021 and Federal Highways Act CAP. 135, 1971, which grants the Honourable Minister of Works the power to administer Tolls on Federal Highways.”
The members are drawn from the Federal Ministries of Works, Finance, Budget and National Planning, Justice as well as Infrastructure Concession Regulatory Commission (ICRC) as the Head, PPP Federal Ministry of Finance, Haj. Jummai Katagum and the Head PPP Unit, Federal Ministry of Works, Mrs. Ugwu-Chima Nnennaya as Chairman and Secretary, respectively.
The committee has two weeks to submit its report.