News

October 19, 2011

FG targets N500bn annual revenue from highways

BY Favour Nnabugwu
Federal Government Tuesday set in motion modalities to generate N500 bilion annually from its highways.

This came at a time a proposal to restrict trucks and tankers to dedicated service lanes on Oshodi-Apapa Expressway was presented to President Goodluck Jonathan.

Mr. Mike Onolememen, Minister of Works,  who disclosed this at the inauguration of Road Sector Reform Committee in Abuja, said the federal roads could only be effectively maintained and sustained through revenue generation model in order for the sector to play its pivotal role to the nation’s economy.

He said:   “It is estimated that about N500 billion could be generated yearly with over two million jobs created nationwide.

“With a current asset value of about N5 trillion, there is need for sustainable development and maintenance of our country’s road transportation infrastructure to provide safe, reliable and free-flowing system for motorists and other road users in order to facilitate economic activities in the country.”

Onolememen who gave the committee six weeks to come up with draft policies on road transportation, said Nigerian roads could be sustainably managed if the country’s road users paid users’ charge and other road-related charges.

He said: “If Nigerians could just part with a little road related users charges here and there, we will all be in a better position to benefit from very good roads. Nigerians will have a pleasurable drive on our roads.”

On Oshodi-Apapa Expressway, the minister disclosed that his ministry had made a proposal to the President to have a dedicated service lane for trucks and tankers on the expressway in Lagos so the tankers and heavy duty trucks would not obstruct traffic flow for other vehicles plying the road.

He stated:   “We have made a proposal to Government and we want to hold Nigerian Port Authority and tankers accountable for implementing the proposal because we believe they have no business on that road.

“We have also recommended a dedicated service lane for the users of tankers and trucks going to the port and tank farms. In that way, the exisiting Oshodi-Apapa Expressway will be free to normal vehicles.”

Amplifying the revenue generation drive of the federal government, the Committee chairman, Dr Bernard Obika, said modern day road sector reform no longer run on a charity.

Obika said:  “I recognised the multidisciplinary road business reform. I mention the word business because road today is business. It is no longer, in modern days, a purely charitable venture

“Any sector that like the Nigerian road sector that has an aseet valued at N5trillion is big business and must be manged along a rigid business line in order to maximise efficiency.”