FG plans cashless toll on Abuja-Keffi-Makurdi expressway

Minister of Works, Dave Umahi

The Federal Government, through the Ministry of Works, has commenced plans to begin a cashless tolling system on the Abuja-Keffi expressway and the dualised Keffi-Akwanga-Markurdi road.

This was as the Minister of Works, David Umahi, inaugurated a committee to finalise the implementation framework on Thursday in Abuja.

A statement by the Special Adviser on Media to the Minister of Works, Uchenna Orji, said the initiative is part of measures by the current administration to revolutionise road infrastructure development and stimulate economic growth.

The PUNCH recalls that the 221.8km Keffi-Akwanga-Makurdi road, procured under the Engineering, Procurement, and Construction-Finance model, was funded up to 85 per cent by China Exim Bank, and 15 per cent counterpart funding from the government. The project was executed by the China Harbour Engineering Company Limited.

The project cost $542m with CHEC handling the road construction while China Exim Bank will provide 85 per cent ($460.8m) of the funding in the form of Preferential Export Buyer’s Credit.

A section of the agreement stated that the company would toll the road and then recoup the money for the government to pay back the loan segment of the project.

Speaking during the inauguration ceremony held at the ministry’s headquarters, the Umahi said the cashless tolling system is a strategic programme under the Highway Development and Management Initiative aimed at promoting a strong and sustainable transportation ecosystem.

He said, “The cashless tolling system is a strategic programme under the Highway Development and Management Initiative aimed at promoting a strong and sustainable transportation ecosystem.

“This is one of the cardinal strategies of President Bola Tinubu towards realising the desires of our people in the road sector development.”

Umahi further urged the committee to utilise the principles outlined in the Terms of Reference to create a comprehensive implementation master plan aimed at achieving the economic and social goals of the Highway Development and Management initiative.

He said, “The committee working on the terms of reference is expected to develop the cashless tolling system implementation framework, and make appropriate recommendations as to the potentials of relief stations and good physical environment along the corridors and proffer practical solution to the challenges of implementing cashless toll collection in the Nigerian environment.

“We must also, as part of the assignment, develop relief stations. Relief stations are what you see in overseas’ expressways, where you have a lot of stations where you have a supermarket, you have a small clinic, you also have security outfits, and many other facilities, including parks, wheel lorries, vehicles park, and tow vans.

“The idea of Mr President is that we should have a maximum of 10 minutes of response time on our Highways, meaning that in the full development of this route, part of the assignment will be how we can install CCTV cameras and also have solar light all through the entire route of the project.

“And so, we will be able to put security on our roads, and then we have a station at the relief centre, where they will stay and watch the vehicles so that within 10 minutes of any incident along the route, the security people will be able to be there within 10 minutes response time. This is the idea of Mr. President and for our major highways.”

Umahi added that the initiative is to ensure sustainable private sector investment and improve the quality and quantity of the road assets in Nigeria to propel rapid economic development.

Earlier in her welcome remarks, the Head PPP Unit, Federal Ministry of Works, Mrs Ugwu-Chima Nnennaya, stated that the inauguration was part of the statutory responsibilities of the Federal Ministry of Works which has the mandate to attract private sector funding for the development and management of Federal road network through the Highways Development and Management Initiative.

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 Minister of Works the power to administer tolls on federal highways.”

In her acceptance speech on behalf of the committee on the implementation of the Cashless Tolling System, the Chairman of the committee and Head of the PPP Federal Ministry of Finance, Jummai Katagum, promised that her team would deliver.

The committee comprises members drawn from the Federal Ministries of Works, Finance, Budget and National Planning, and Justice as well as the Infrastructure Concession Regulatory Commission. The committee has two weeks to submit its report.