FG to reintroduce toll gates, fuel tax
By Rasheed Bisiriyu, Published: Tuesday, 30 Mar 2010


Six years after scrapping toll gates on major highways, the Federal Government is to reintroduce them to raise funds for road maintenance in the country.



The government is also planning to introduce a five-per cent road user charge on the pump price of petrol and diesel, through which it hopes to raise about N30bn annually to maintain the nation‘s 220,000 kilometres of roads.



The Chairman, Federal Roads Maintenance Agency, Mr. Abdulkadir Kure, said in Lagos on Monday that the decision to bring back toll collection on federal roads had already received the blessing of the stakeholders.



Former President Olusegun Obasanjo had ordered the dismantling of the toll gates with effect from January I, 2004, following the imposition of a fuel tax of N1.50 on every litre of petrol.



The controversial fuel tax was, however, suspended on the orders of the Court of Appeal, Abuja. The suspension order came after all the toll gates had been demolished and were not restored.



But speaking at a press briefing in Lagos on Monday, Kure lamented the poor funding of road projects by government, and insisted that the return of the tolling system remained one of the best ways to rescue the situation.



He said that while FERMA would require about N1tn annually to fix the nation‘s deplorable roads, it had received only N30bn in the last two years through budgetary allocation for road maintenance.



According to him, with about N35m needed to effectively restore one kilometre of road, FERMA will require 35 years to maintain the roads under the current level of funding.



For this reason, the FERMA chairman said, “The agency intends to reintroduce toll collection on major federal roads and bridges in order to generate funds for road maintenance. The management of the facility will be very different from the former arrangement where only a pittance came to the public coffers from toll collection.



”Stakeholders in the transportation sector have agreed with the introduction of tolls on our highways once assurance can be given that the proceeds will be used for maintaining the roads.”



Kure said that the establishment of fuel tax was also inevitable as a funding source for road projects in view of the pressure on roads as a mode of transportation. For instance, he said that 95 per cent of the movement of people and goods was being done by road.



Kure said out of the N30bn expected to be generated from the fuel tax, only 40 per cent would be utilised by FERMA for federal roads, while ”the remaining 60 per cent would be shared by established state road maintenance agencies.



“It is envisaged that the agency will exit from budgetary allocation from the Federal Government in the long run once this funding mechanism takes root,” he added.



International vehicle charge is another avenue for raising funds by the agency, according to the FERMA chairman. This, he said, was provided for in the FERMA (Amendment) Act 2007.



”When fully operational, the agency hopes to generate about N7.765bn for road maintenance from nine of the country‘s border posts,” he said.



Kure also stressed that the involvement of the private sector through concession would play a major role in the new direction of improving the conditions of the nation‘s roads. To this end, he said that four major federal roads already selected for the concession programme included the Nine Mile-Oturpka-Orturpo; Mokwa-Tegina-B/Gwari-Kaduna; Abeokuta-Ibadan-Ife-Ilesha; and Jos-Bauchi-Gombe roads.



Earlier, the Federal Ministry of Works had handed over the Lagos-Ibadan Expressway to Bicourtney Highways Limited, a private firm, for expansion, rehabilitation and management through a Build, Operate and Transfer arrangement.


http://www.punchng.com/Articl.aspx?theartic=Art201003303451532

Another traffic jam on the highway.

they are not stealing enough from oil again

only in Naija

Spend Billions to destroy. . . and Trillions to build again. . .and billions to destroy again

while an estimated 90 percent live below the poverty line.

Giant of Africa indeed!

The question is whether the proceeds will be judiciously used and the multiplier effect of the toll on commuters, as transporters will definitely take advantage of this to increase transport fare again. I know that one day, this country will be ruled by considerate leaders.

Toll gates in addition to the Mopol officers on highways; do these politicians want road users to sleep on the roads?? Cos i can imagine the crazy traffic holdups this is all gonna cause.

And if they're gonna bring back toll-gates, why the fuel tax? Wasn't the introduction of fuel tax OBJ's reason for scrapping the gates in the first instance? Abi they want to eat their cakes and still have it?

DGI-PLUS:

The question is whether the proceeds will be judiciously used and the multiplier effect of the toll on commuters, as transporters will definitely take advantage of this to increase transport fare again. I know that one day, this country will be ruled by considerate leaders.

toll gates were never a good thing in nigeria and that was why obasanjo dismantled it in 2004 because the money went to private pockets.i wonder where the proceed will go now,if not going to end in same private pockets

well If they will use the money to beta the roads I am in support, I am not out of cash to pay my toll gate fees my internet bizness school is doing well of late, Nice day day to you all my brothers and sisters plz dont give up on our FG

How much of the tax money is properly utilized? Let an economist help me on these; tax money and niger delta crude oil money which is the greatest? Yar'adua no more sick but hungry. Waoh!

Scam as usual.

But is this not madness? So toll gate is the issue at hand now? Toll gate is the solution now? oh heaven where does this people in power Nigeria came from? Thye are not talking about Electricity after they failed and lied to all Nigerian on the so called 6,000 megawatt or megamadness? They are not talking about our education that has gone to the alien world? So is toll contractors that will make good road in Nigeria this is purely silliness of all time I can now see that all the people on power are really sick now. I least expect it after the demolition of the so called toll gate someone still goes back to it to raise them up again this is purely madness so the so called Alhaji so and so, chief so and so, honourable so and so will corner the whole lot again and turn the whole money to their private account? This is outrageous. I am not very sure this news is truth infact it must not be.

Fuel Tax please which fuel? Is there any fuel in Nigeria? They must be sleeping for sure.

This is foolish. Another way to siphon money from the public without proper accountability

Only if any of the money will be used to maintain the roads, and do it well.

The country is governed by criminals

Jcob:

Another traffic jam on the highway.

This is 2010.  In advance countries, Swipe cards are used.Just buy your swipe cards, when you get to the toll gate drive through and you swipe.This should be the best bet we pray people in charge should be accountable.
Thats all. Another neat way of generating revenue to develop the roads amongst other infrastructures,

I just think that our leaders are confused!!

itt.international thief thief.you so called leaders will thief till devil kill you guys

Now we have to spend billions of naira again to construct d toll gates dat were dismantled with millions of naira.
Wat culd be d problem with our nation? Why can't we make decisions dat will last? The toll gates were dismantled in less than a decade ago and now dey are to be restored.

God save our nation!

To me,the(i do believe they are OURS) government of Nigeria always find a way to generate money but end up misusing the funds. Our greatest problem is MISMANAGEMENT and i pray that one day, all these must surely come to History. Amen

Nigeria can't be serious; toll gates when more basic necessities aren't reaching the average citizen? Forget the money going into private pockets (that's a given); what about public safety? A traffic jam caused by toll gates sounds like an armed robber's dream.

ideas78:

This is 2010.  In advance countries, Swipe cards are used.Just buy your swipe cards, when you get to the toll gate drive through and you swipe.This should be the best bet we pray people in charge should be accountable.
Thats all. Another neat way of generating revenue to develop the roads amongst other infrastructures,

@ideas78 This is Nigeria where is the electricity to power the swipe card system and is it not corrupt offsprings that will collect the money when you buy swipe cards? In fact I recommend that you study the pilot scheme of swipe "receipt" at the MMA2 in Lagos and see how 'efficient' the card swipe system is within a car park before recommending it for our high ways!

@topic introduction of toll fees and fuel tax is another corrupt way of lining some people's pocket or rewarding some party loyalist

Nigeria is Soja go, soja come

keep it up, our new government this is a simple way for generating income.

Oh naija

ideas78:

This is 2010.  In advance countries, Swipe cards are used.Just buy your swipe cards, when you get to the toll gate drive through and you swipe.This should be the best bet we pray people in charge should be accountable.
Thats all. Another neat way of generating revenue to develop the roads amongst other infrastructures,

Swipe cards in Nigeria? Please stop the joke ok. I know it will be helpful because traffic will move very smoothly. With Z-Pass and cash only, things move smoothly in USA. First thing, think of twenty four hour electricity which does exit in Nigeria. This toll gates come into play in very new administration without producing any result. Anyway, we have a child brains in Nigeria as governments because in order to embark on project like this, all the roads need to be wilder and bigger.

ideas78:

This is 2010.  In advance countries, Swipe cards are used.Just buy your swipe cards, when you get to the toll gate drive through and you swipe.This should be the best bet we pray people in charge should be accountable.
Thats all. Another neat way of generating revenue to develop the roads amongst other infrastructures,

That is in advanced countries and not a nation that hates development

Laudable project but someone's pocket is about to be laced.

So these our idiotic leaders have the guts to tell us that they don't have enough fund for road maintainance. Upon excess oil money in billions of dollars? 2010 budget was made based on $62 per barrel estimate, but today, oil hovers around $80 per barrel and still they talk of lack of fund.

Nigerian misleaders when will I ever understand you? Chineke mere anyi ebere na obodo a.

gentlegg:

So these our idiotic leaders have the guts to tell us that they don't have enough fund for road maintainance. Upon excess oil money in billions of dollars? 2010 budget was made based on $62 per barrel estimate, but today, oil hovers around $80 per barrel and still they talk of lack of fund.

Nigerian misleaders when will I ever understand you? Chineke mere anyi ebere na obodo a.

Welcome to the real Nija

They know Nigerians will only bark and not bite. Others will end up praying and fasting for God to rescue them.

May be we should fast and pray for 365days non-stop

Toll booth is another way to diversify on looting, Many people will chop, inflated contracts, toll operators too will build many houses from printing their own toll tickets. Don't forget NPF will hang around toll gates collecting their own.