Financing Roads through Tolls in Nigeria: The Role of Public-Private Partnerships

Nearly 18 years after the Government of Nigeria dismantled toll plazas along the country’s highways, there is renewed interest by the present administration to re-introduce toll roads to help finance the construction, repairs and maintenance of the highways. This has been met with predictable opposition from different interest groups around the country. This paper notes that using tolls as a means of financing highways is not a particularly bad strategy, as there are several benefits that could accrue to the country from its use. However, the manner in which the proposed tolling appears to be structured will not resolve all the issues bedevilling the Nigerian road sector. For greater impact and sustainability, the financing of some of the major roads should be done in partnership with the private sector, through Public-Private Partnerships. This paper acknowledges the peculiar difficulties inherent in the use of tolls to finance roads in Nigeria and suggests policies that are required to make it successful.