Not Everyone Agrees With Fashola On Lagos-Ibadan Expressway
So, Fashola seemed to have gotten fed up with the bottlenecks associated with funding options for some critical road infrastructure such as the Lagos-Ibadan Expressway and the second Niger Bridge – both ongoing projects.
So, he came up with the idea that unless government was going to assume full responsibility for the funding of the projects, they may never see the light of day.
Also Read: Second Niger Bridge: What Fashola Wants
This seems plausible but not everyone agrees with him.
Fashola’s comments, which he made while speaking before a House of Reps committee has generated several reactions and some people have disagreed with him.
Some of those include the Acting Director-General, Infrastructure Concession Regulatory Commission, Chidi Izuwah, and the Managing Director, Nigeria Sovereign Wealth Investment Authority, Uche Orji.
The duo say they believed Public-Private Partnership remains the solution to funding the Lagos-Ibadan Expressway project.
Izuwah and Orji, who also spoke at the House of Reps hearing, said the critical issue in a PPP concession is not the size of the balance sheet of the concessionaire, but the bankability of the concession agreement and the ability of the cash flows from the project to repay the facility.
Read More: Nigerian Roads Are Not Bad, Fashola Boasts
Izuwah pointed out that if the country’s entire annual budget was dedicated to infrastructure without any recurrent spending, it would still not be sufficient to meet requirement.
Orji, on his part, stated that Nigeria needs $35 billion yearly over the next 6 to 7 years to breach its infrastructure deficit.
“The annual sum required already exceeds Nigeria’s entire annual budget and this need can only be met through PPPs,” he added.
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