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Nairametrics
Home Sectors Real Estate and Construction

FG to introduce tolls on Lagos-Ibadan Expressway after Phase 1 completion 

Caleb Obiowo by Caleb Obiowo
February 26, 2025
in Real Estate and Construction, Sectors
David Umahi,
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The Federal Government plans to introduce tolls on the Lagos-Ibadan Expressway once Phase 1 is completed to generate revenue for maintenance.

Minister of Works, David Umahi, announced this at the Lagos-Calabar Coastal Highway Stakeholders’ Meeting on Sunday, 23rd February 2025, in Lagos.

He added that tolling would commence on Phase 1 while work on Phase 2 continues, encouraging private-sector participation.

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He stated, “We will be coming back to advocate with the stakeholders to allow us toll some of these completed projects, section by section.” 

“ Lagos-Ibadan Expressway, when the Phase 1 is finished we will like to toll it while we work on the section  2 so that the private sector will participate actively,” the minister added.  

Umahi explained that the decision to toll the expressway was driven by the need to ensure sustainable maintenance, as some completed sections are beginning to fail due to insufficient funds.

He noted, “Some of the projects have stayed fifteen years and are beginning to fail. If we don’t give it to private investors on Operate and Maintain, we are going to run into trouble.” 

The minister disclosed that the Federal Government plans to implement the tolling policy across the six geopolitical zones.

More insights 

Umahi also provided further updates on the Lagos-Ibadan Expressway project, which is divided into two main phases with multiple sections.

Phase 1 includes Section 1, constructed by Julius Berger, covering about 43 km with three lanes dualised. Although minor failures were recorded, Umahi noted that they had been successfully repaired.

  • Section 2, managed by RCC, faced significant failures on the Ibadan-bound lane, prompting ongoing repairs. He disclosed that RCC has been directed to engage in further discussions to address the issues. Approximately 8.5 km of this section remains incomplete, with Umahi stating that it is expected to be finished by April and commissioned in May.
  • Umahi also announced a new policy aimed at ensuring accountability and quality in road construction. He stated that any payment made by the Ministry of Works would now require an active Advance Payment Guarantee (APG) and a performing performance bond.
  • This measure is designed to secure funds for repairs if contractors fail to address defects within the liability period. He emphasized that this policy would apply to RCC’s ongoing repairs on the expressway.

Phase 2 involves completing flyover heads at key locations, including the RCCG axis, Wawa axis, Ogun Bridge, and Arepo Bridge. It also features a 12 km dual carriage stretch at Sagamu-Iperu, which is currently under construction using rigid pavement.

Additionally, a 48 km stretch to Ore will be reworked, with the contract expected to be awarded by March. According to Umahi, the completion of this phase will end at the Ibadan axis, marking the conclusion of the Lagos-Ibadan Expressway project

Tags: David Umahi
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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