Toll gates are not new to Nigeria, initially introduced in the 1970s as a means of funding road maintenance. They were managed by civil servants in the 1970s before being handed over to contractors and finally stopped by the Obasanjo administration in 2003. The toll gate regime was accused several times of inefficiencies, corruption, and mismanagement. The Obasanjo administration cited concerns over revenue leakages, political patronage, and a lack of transparency in toll collection. The expectation was that funds generated from fuel taxes would be used to maintain roads, but poor implementation led to the continued deterioration of highways.
The current administration believes that tolling is a long-term strategy to sustain road infrastructure development. The government claims that through tolling, we will have:
Sustainable maintenance of highways
Additional revenue generation
Reduction in reliance on budget allocations for road repairs
Encouragement of private-sector participation in road development
Truth be told, it sounds nice and would boost our infrastructural development if managed properly. But at a time when many in the country are suffering from inflation, unemployment, and economic difficulty, one wonders if this is the right time for this policy. The government has assured that, unlike previous tolling arrangements, the new initiative will be managed by private companies, particularly China Harbour Engineering, which facilitated the loan for road rehabilitation from China Exim Bank.
Economic Effects of Tolling on Nigerians
- Increased Cost of Transportation
With toll fees set at ₦500 for saloon cars, ₦800 for SUVs, ₦1,000 for minibuses, and ₦1,600 for articulated trucks, the cost of transportation is expected to rise. This is particularly concerning given the already high cost of living caused by the removal of fuel subsidies, the floating of the Naira, and rising electricity tariffs. Higher transport costs will ultimately increase the prices of goods and services.
- Reduced Disposable Income
For ordinary Nigerians who rely on these highways for daily commuting, tolling will take a toll on disposable income. Those who travel frequently, particularly commercial drivers, will have to either absorb the extra costs or transfer them to passengers. The impact will be felt more by lower-income earners who use the highways regularly.
- Potential for Revenue Diversion and Corruption
One of the main reasons Nigeria abandoned tolling in 2003 was the widespread corruption in revenue collection. While the government promises a more transparent process, there is skepticism about whether the funds generated will be properly accounted for and used solely for road maintenance. Past experiences, such as the Lekki Toll Gate controversy, raise concerns about transparency in toll revenue management.
- Improved Road Infrastructure (If Properly Managed)
If the revenue generated from tolling is used effectively, Nigeria could experience improved road infrastructure, reduced travel time, and better safety on highways. Well-maintained roads can enhance trade, boost business activities, and facilitate economic growth by improving the movement of goods and services across the country.
- Impact on the Informal Sector
Small-scale traders, artisans, and low-income workers who rely on these highways for their businesses may face challenges due to increased transportation costs. This could reduce profit margins for small businesses and make basic goods more expensive for consumers.
The reintroduction of tolling in Nigeria is not necessarily a bad idea. Many countries successfully use tolling to maintain their roads. However, Nigeria’s past experience raises legitimate concerns about accountability, corruption, and the potential for mismanagement. For this policy to succeed, the government must ensure transparency in revenue collection and utilization. If the tolling is managed properly, then we are on our way to building world-class infrastructure.
Ubong Usoro
