While disclosing official
thinking to revert to tolling, Works, Housing and Power Minister Barrister Babatunde Fashola (SAN), pointed out the glaring insufficiency of
budgetary allocations for maintenance, upgrading and management of 36,000
kilometres of Federal highways; the longest in Africa. He explained that the
highways sector had 206 ongoing projects with a total cost of N2 trillion. The
budgetary allocation for 2015 is a little over N18 billion out of which the
ministry expended N15 billion. Historically, he reported that the highest ever
annual budget for roads was N200 billion in 2002.
In reaction, the Nigerian Institute of Highway Engineers
supported the proposal but called on the National Assembly to pass the Road
Reform Bill. Some people also raised issues about “taxation” without visible
benefits to the populace. Others cite the universally accepted principle
requiring availability of alternate routes. There was also the fear of the
ripple effects of increase in transport fares and food prices. What is needed
is transparency by government. Public enlightenment will douse likely
resistance to road user contributions. The minister also promised, notably,
that leakages would be reduced by applying latest available technology. The
minister came to his assignment with the experiences of the concessionaire’s
tolls on Lekki Expressway and the Lekki-Ikoyi Link Bridge.
However, a study of the
challenges of funding roads in Nigeria has in the past indicated that tolling
is a miniscule part of the needed funds; and that there may be a necessity for
a body for the planning, construction, maintenance and management of the
federal highways, and also give support to states’ road projects based on given
criteria and on the principles of matching fund.
Although there had been
tolls on community-erected stream crossings (e.g. Ajegunle to Marine Road
Apapa), the Lagos-Ibadan Expressway (Federal Route 20) was the first tolled Federal highway in Nigeria. It was part of
the condition for its funding by the World Bank. Tolling was later extended to
other federal roads nationwide. The Federal Ministry of Works set up a Federal
Toll Plaza Management Committee which deployed its officials to collect tolls
and later contracted out to handpicked companies which were allowed to take a
percentage but there was no correlation between the funds generated and road
maintenance because payments were domiciled in the Consolidated Revenue Account
of the Federation; while money for road maintenance and management had to come
from annual budgetary allocations.
The tolls were scrapped on
January 1, 2004 by then President
Olusegun Obasanjo, and toll plazas demolished at a cost of N430 million.
One of the reasons adduced by the Works Minister Ogunlewe at the time was the
paucity of funds realised from the toll plazas, while the government intended
to implement a road user charge per litre of premium motor spirit and diesel;
to take off in January 2004 and given to Federal Roads Maintenance Agency
(FERMA).
Government set up Federal
Roads Maintenance Agency, which experts decried as akin to “a baby before its
parent agency.” Funding had been its problem from inception in 2000; while there
was a duplication of officials for federal roads; with FERMA handling routine
maintenance and the Federal Highways Division handling major rehabilitation
such as the Lagos Ibadan Expressway and the Sagamu-Ore-Benin City Expressway.
The idea of tolling has to
be considered within the ambit of a holistic package to generate adequate funds
for roads maintenance, such that regular road users are not over-burdened. The
private sector, as well as individual citizens, will certainly play a role in
this regard, while care must be taken to ensure that tolling does not directly
or indirectly worsen the economy. The regular flow of funds (from tolling)
provides the confidence for financial institutions to provide long-term
instruments for road programmes.
While it is recognised that
roads constructed on Build, Operate and Transfer (BOT) basis will necessarily
attract tolls, this must be reasonable and acceptable to all stakeholders.
Tolling on roads should never be taken merely as an avenue to generate revenue
for government at the expense of the populace. To correct negative impressions
arising from past mishandling of proceeds of tollgates, money realised should
be spent strictly for roads maintenance; partly in fulfillment of government
obligations, and to encourage the road users who pay the tolls. As much as
possible, alternative roads should be developed so that those who are unwilling
to pay tolls are not coerced. Government should not abdicate its responsibility
to the people; and this it can ensure by putting public interest as its
ultimate consideration in any revenue drive, including tollgates on roads.
(Guardian)
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