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Abuja-Lafia-Keffi-Makurdi Highway Toll Revenue to Repay China Exim Bank $542M Loan

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1 month ago

Feb 16, 2025.

Abuja-Lafia-Keffi-Makurdi Highway Toll Revenue to Repay $542M Loan

China Exim Bank provided 85% of the funding, amounting to $460.8 million, while the Nigerian government contributed the remaining 15% of the project’s total cost of $542 million.
The loan agreement operates under the EPC+F financing model, which combines Engineering, Procurement, and Construction (EPC) services with financing solutions like export loans and credit insurance.

The Federal Government of Nigeria has announced a partnership with the China Exim Bank to generate an estimated ₦814.08 billion in toll revenue from the Abuja-Lafia-Keffi-Makurdi Highway.

Eko Hot Blog reports that this revenue will be used to repay a $542 million loan obtained for the road’s construction.

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The estimated amount is based on the current official exchange rate of ₦1,502 to $1.

The loan agreement operates under the EPC+F financing model, which combines Engineering, Procurement, and Construction (EPC) services with financing solutions like export loans and credit insurance.

This model allows contractors to secure funding for the project while executing it effectively.

The Keffi-Abuja-Makurdi Expressway project, involving the expansion and dualization of the existing carriageway, was funded through a joint arrangement between the Nigerian government and China Exim Bank.

China Exim Bank provided 85% of the funding, amounting to $460.8 million, while the Nigerian government contributed the remaining 15% of the project’s total cost of $542 million.

During an inspection of the Abuja-Kaduna-Kano expressway, Nigerian Minister of Works, Engr. David Umahi, discussed the government’s approach to tolling and road maintenance for critical infrastructure projects.

The minister emphasized that toll collection would only be implemented once roads are fully completed, addressing concerns about potential tolls on incomplete roads.

Umahi explained that in cases where a completed road is already deteriorating, an agreement would be reached with stakeholders to introduce tolling as a measure to sustain road maintenance.

Abuja-Lafia-Keffi-Makurdi Highway Toll Revenue to Repay $542M Loan

He added that where a 200-kilometer road has been completed up to 150 kilometers, discussions with the public would help determine the feasibility of tolling, as leaving the finished portions without maintenance could lead to further deterioration.

The Federal Government had earlier approved the reintroduction of toll gates on specific roads, with plans to toll only 5,050 kilometers of dual carriageways out of the country’s 35,000 kilometers of federal roads.

This decision, approved by the Federal Executive Council, aligns with the government’s strategy to generate revenue for road maintenance and repay investors who have financed highway projects under the Highway Development Management Initiative.

Special Adviser to the Minister of Works, Barr. Orji Uchenna Orji, confirmed that the Keffi-Akwanga-Makurdi highway was executed under the EPC+F model by China Harbour Ltd.

As part of the agreement, tolling would be introduced to facilitate the repayment of the loan. He noted that discussions on which roads to toll are ongoing, with several projects under review.

He also disclosed that the minister is currently in Benue State for inspections, adding that specific details on additional tolling plans would be determined after consulting relevant officers and documents.