More than eight months after the Lagos State Government secured a $1.3 billion commitment from the African Export-Import Bank and Access Bank to invest in the fourth mainland bridge project, the financiers and the government have remained at odds over the need to begin construction works on the transportation facility, following the state’s inability to secure the Federal Government’s commitment on the multi-million naira project.
While the state insisted that the project could commence without the federal government’s involvement since it is a subnational entity, the financiers have maintained that they would only proceed with the agreement when Lagos state could secure the federal government’s commitment to the bridge.
The financiers, it was learnt, made the demands to avoid future dispute after reviewing challenges that affected the expansion of the Lagos-Badagry expressway into 10 lanes, which the federal government stood as guarantor for the state to secure the World Bank fund.
Disclosing reasons for the delay, the Lagos State Governor, Babajide Sanwo-Olu, said that efforts were ongoing by the government to ensure that construction on the project, designed to reduce travel time within the state, started.
Sanwo-Olu, who disclosed this while responding to questions on a popular television show on Monday, emphasized the need for a thorough evaluation of the project’s financial sustainability, particularly given its $2 billion price tag.
While arguing on the complexities of financing large-scale infrastructure projects at the subnational level, he noted that any significant development would require careful assessment of sustainability ratios to ensure long-term viability.
Sanwo-Olu explained that potential investors and funding partners were seeking sovereign guarantees and commitments from the central government before proceeding.
However, the governor clarified that as a state leader, he does not possess the authority to grant conditions requested by the project financiers.
According to him, this situation requires the state government to approach the Federal Executive Council (FEC) and the National Assembly to seek the necessary approvals, a process he described as fraught with challenges.
“There are many ways to skin a cat. We have looked at the financial sustainability of Lagos. Any development you want to do at that scale and you are a subnational, you need to be able to look at your sustainability ratio. Everybody that has raised funding to help us develop that project, they are asking for sovereign guarantee, they are asking for a commitment from the central government. We are not the central government so we have not been able to push that because we would need to go to the national assembly to ask for this, ask for that so it is a difficult line for us to go to.”, he said.
The Fourth Mainland Bridge is envisioned as a transformative infrastructure project, aimed at alleviating traffic congestion and enhancing connectivity across Lagos. Yet, without the federal government’s support and the corresponding financial guarantees, the future of the project remains uncertain.
