Bida
Niger state targets revenue from three million trucks as FG plans tolling system
The Niger State Government has disclosed that it can generate billions of Naira annually from trucks passing through Bida, as Nigeria plans to reintroduce the tolling system.
The Governor of Niger State, Mohammed Umaru Bago, made this known during the flag-off of the Bida township road dualization project, according to a statement by Bologi Ibrahim, Chief Press Secretary to the Governor of Niger State.
“Niger State Governor, farmer Mohammed Umaru Bago has disclosed that the State can generate Billions of Naira annually from trucks passing through Bida, as tolling system would soon be re-introduced in Nigeria.
“Farmer Governor Umaru Bago disclosed this during the flagging-off of the Bida township road dualization project,” the statement read in part.
Governor Bago revealed that with three million trucks traversing Bida each month, the state stands to significantly boost its revenue through toll collections, particularly along the Bida Ring Road.
He noted that establishing trailer parks for these trucks could serve as another effective revenue-generating strategy.
He further said that some toll gates in Niger State would be conceded to private individuals to enhance transparency and accountability. He explained that these concessions would not only generate job opportunities for many, particularly the youth but also support his administration’s commitment to efficient governance.
What you should know
Currently, only a few roads in Nigeria are tolled. However, state governors are actively discussing plans to broaden this tolling system to increase revenue and shift road maintenance responsibilities to them.
Additionally, under the Highway Development and Management Initiative (HDMI), a Public Private Partnership (PPP) designed to ease the Federal Government’s financial burden, new roads will be tolled to allow concessionaires to recoup their investments.
The HDMI program supports the construction, operation, and maintenance of highways nationwide, offering concessionaires revenue through negotiated tolls and other fees.
The Minister of Works, David Umahi, has specified that concessionaires must complete at least one carriageway before initiating toll collection from road users.
The Lagos-Calabar Coastal Highway, currently under construction in its Phase 1 segment within Lagos State, is planned to be tolled upon completion.
This coastal highway project is being executed under an EPC+F model—encompassing engineering, procurement, construction, and financing. This model guarantees a fixed price and completion date, transferring risks to the contractor, Hitech, which will recoup its investment through toll collections.
In April 2024, Minister Umahi indicated that vehicles using the Lagos-Calabar Coastal Road would be charged an average of N3,000 per toll gate, estimating that the investment would be recouped within 15 years.
