FEC Aapproves New Tolling Policy and Regulations

The Federal Executive Council (FEC) has, on Wednesday, August 11, 2021, approved a Federal Roads and Bridges Tolling Policy and Regulations. It is noteworthy that the recently approved policy and regulations have been undergoing development for a while now before the approval yesterday by the Cabinet.

According to the Minister of Works and Housing, Babatunde Fashola, SAN, who briefed the press after the Meeting, the Policy and accompanying Regulations were developed upon extensive consultations with key stakeholders in and outside Government, including transport unions, namely, NARTO, NURTW, and RTEAN.

A Willingness-To-Pay Survey was also carried out, to develop the recommended pricing framework. Existing tolls (on Lagos and Abuja Airport Toll Plazas, and the Lekki and Ikoyi Toll Plazas) were also considered.

Highlights of the new Federal Tolling Policy, as revealed by the Minister, are as follows:

An Open Tolling system, like the one that used to be in existence in the country, and not Closed Tolling system. In the Open Tolling system, motorists pay per distance traveled (‘distance-dependent’), while Open Tolling means that motorists pay a fixed or distant independent flat rate.
Only 5,050km of the 35,000km of Federal Roads in the country are dual carriageways that will be eligible for tolling by the Federal Government. Single or undivided Federal highways will not be tolled. The exceptions will be some bridges that are listed in the Policy.
Toll Revenues will be utilized to maintain the roads and to repay investors who invest in building or completing a road under the Highway Development Management Initiative (HDMI).
Electronic Toll Collection and Management systems will be prioritized over Cash-based systems.
Bicycles, Tricycles, Motorcycles, Diplomatic vehicles, Military and Paramilitary vehicles will be exempted from Tolling.
The Tolling Policy is a broad National framework that will also guide States and Local Governments seeking to implement their own Tolling Policies. About 16% each of the total road network in Nigeria are Federal and State Government-owned, while the rest or two-thirds are last-mile roads under the control and responsibility of Local Governments nationwide.
People who live around Toll Plaza Areas will benefit from ‘Frequent User’ discounts, in line with global best practices.
Recommended Tolling Fees in the Approved Policy and Regulations are as follows:

Cars: N200
SUVs: N300
Private Buses: N300
Commercial Buses: N150
Luxury Buses and Trucks: N500

9.The Federal Highways Act vests the power to toll Federal Roads in the Minister in charge of roads, but implementation of the Tolling Policy involves multiple processes and agencies, therefore requiring multi-stakeholder collaboration.

Tolling will not commence “until the roads are motorable.”

According to the Minister, understanding and due cognizance of the highlights are necessary for implementation of the new Tolling Policy and Regulations to take off and proceed seamlessly, for the populace to get familiar with the new framework and for relevant stakeholders to start using it as basis for financial modeling and investment analysis, ahead of eventual rollout of Toll Plazas.