Nigeria has mandated its Infrastructure Bank to raise N167 billion for the reconstruction of the 127-kilometre Lagos-Ibadan dual carriage way, its most sensitive road network leading to the AFrica's second biggest economy commercial nerves.
| A major road under construction in Nigeria |
Under the scheme of arrangement, the bank is expected to be the transaction adviser and lead a consortium of local and international financiers, as well as investors, to provide the required funding for the project.
Adekunle Oyinloye, Managing Director of the bank, said the financial institution would leverage on its financial expertise in its partnership with the Federal Government on the reconstruction of the expressway.
Oyinloye said that his bank was thrilled to have been able to provide the financial engineering to ensure the bankability of this project and would raise the requisite capital to execute the project
“The project is now to be completed in a record time of 24 to 30 months as opposed to the 48 months initially proposed by the contractors,” he said.
According to Oyinloye, Infrastructure Bank has been providing cutting-edge advisory services for the project, while it would continue to work with the Federal Government towards the timely completion of the project.
He called on other Nigerian banks to channel their pool of funds into the development of infrastructure, to further unlock the nation’s potential.
“For Nigeria to rapidly reduce its infrastructure deficit and improve on its socio-economic development indices, it behoves the nation’s financial sector to unlock its potential,” he said.
At the flag-off ceremony of the project in July, President Goodluck Jonathan had said that “the road is an important economic artery that connects our nation’s economic nerve centre to many of the states of our federation,” stressing that “this strategic national infrastructure is therefore of great socio-economic importance, not only to Nigeria, but also to the people of Africa”.
The Minister of Works, Mike Onolememen, described the project as further evidence of the unwavering commitment of President Jonathan to transform the nation’s transport infrastructure.
He said that the Federal Government was delighted to have worked closely with the Infrastructure Bank in structuring innovative financing solution for the rehabilitation and expansion of the expressway.
The Lagos-Ibadan expressway was built over 30 years ago and is one of the most important roads in the country, linking the nation’s commercial hub of Lagos to the adjoining states and the rest of the country.
The road was initially concessioned to Bi-Courtney Services Limited but the arrangement was revoked by the Federal Government early this year, over assessed slow pace of work on the project.
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