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Home Economy Fiscal Policy

The Need To Reintroduce Toll Gates On Nigerian Highways

by Cee Harmon
12 months ago
in Fiscal Policy
Reading Time: 3 mins read
Toll Gates
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Nigeria’s road network, comprising over 200,000 kilometers of paved and unpaved roads, is the lifeblood of its economy. These roads facilitate the movement of goods and people, connecting cities and rural areas, and underpinning the nation’s economic activities. However, the current state of Nigeria’s highways is a far cry from what is needed to support a burgeoning economy and a growing population. Poor road conditions, rampant potholes, and inadequate maintenance have become the norm, causing accidents, increasing transportation costs, and hindering economic growth. It is within this context that the reintroduction of toll gates on Nigerian highways should be urgently considered.
Toll gates were previously a feature of Nigerian highways, but they were abolished in 2003 due to issues of mismanagement, corruption, and public dissatisfaction. However, the absence of toll gates has led to a critical funding gap for road maintenance and development. The toll gate system, if properly managed, can provide a sustainable revenue stream to maintain and upgrade the road network, ensuring safer and more efficient transportation.
One of the most compelling arguments for reintroducing toll gates is the dire need for funding. The Nigerian government faces significant financial constraints, and relying solely on the federal budget to maintain and expand the road network is unrealistic. Tolling provides a practical solution to generate the necessary funds. Revenues collected from tolls can be directly reinvested into road maintenance and infrastructure projects, ensuring that roads are kept in good condition and new projects can be undertaken.
Moreover, toll gates can attract private sector investment through public-private partnerships (PPPs). By offering concessions to private companies to build and maintain roads in exchange for toll revenue, the government can leverage private capital and expertise, thus accelerating the development of road infrastructure.
Good road infrastructure is crucial for economic efficiency. Poor roads increase vehicle operating costs, cause delays, and hamper the efficient movement of goods and services. This inefficiency translates into higher prices for goods, reduced competitiveness of Nigerian businesses, and overall economic stagnation. By reintroducing toll gates and ensuring that toll revenues are used effectively, the government can significantly improve road conditions, facilitating smoother and faster transportation. This, in turn, enhances productivity and contributes to economic growth.
Addressing Public Concerns
Public opposition to toll gates in the past stemmed largely from concerns over corruption, inefficiency, and the additional financial burden on road users. To address these concerns, the reintroduction of toll gates must be accompanied by robust measures to ensure transparency and accountability. This includes:
Transparent Revenue Management: Establishing an independent body to oversee the collection and utilisation of toll revenues can ensure that funds are used solely for road maintenance and development. Regular audits and public disclosure of financial statements can build public trust.
Efficient Toll Collection: Implementing modern tolling technology, such as electronic toll collection (ETC) systems, can reduce congestion at toll plazas, prevent revenue leakage, and enhance efficiency. This technology can also offer convenience to road users through prepaid cards or automatic deductions.
Gradual Implementation and Fair Pricing: A phased reintroduction of toll gates can help ease the transition. Toll rates should be set at reasonable levels, considering the economic conditions of different regions and the need to avoid placing an undue burden on road users. Exemptions or subsidies for essential goods transport can also be considered to mitigate economic impact.
While the primary objective of reintroducing toll gates is to generate funds for road maintenance, it is essential to ensure that the system is equitable. Rural areas, where economic activities may not justify tolls, should be considered for alternative funding mechanisms to avoid neglect. Additionally, the government must ensure that the benefits of improved road infrastructure are shared widely, including providing better access to education, healthcare, and markets for rural communities.

The reintroduction of toll gates on Nigerian highways is not merely a fiscal necessity; it is a strategic imperative for the country’s development. By addressing the root causes of past failures and implementing a transparent, efficient, and fair tolling system, Nigeria can significantly improve its road infrastructure. This will enhance road safety, boost economic efficiency, and foster sustainable growth.

For Nigeria to realize its full potential, it must invest in its infrastructure. Toll gates, if managed properly, offer a viable solution to one of the most pressing challenges facing the nation. It is time for Nigeria to move forward, leveraging its resources and ingenuity to build a better, more connected future for all its citizens.

 

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