4 _15-10_ - Raimi
International Journal of
RESPONSIBLE INVESTMENT (RI): AN
ALTERNATIVE FUNDING OPTION FOR
ROADS-BRIDGES MANAGEMENT IN NIGERIA
UNDER THE PUBLIC
Received: May 26, 2014
Tolling is an age long revenue collection system institutionalised
accumulating funds required for roads and bridges construction, maintenance and
management. In spite of the merits of tolling as a major source of revenue in Nigeria, it was
abruptly abrogated by the government few years ago beca
governance, endemic corruption and lack of probity. The purpose of this paper is to make a
case for responsible investment as an alternative funding mechanism for roads
management (RBM) in Nigeria under a Publ
paper adopts a discursive approach, relying on government policy documents, journal
articles, online resources, working papers and reports on tolling best practices. The
numerical and non-numerical data were crit
by tables and figures. The first finding indicates there are enormous potentials in tolls
collection from privately funded roads and bridges for responsible investors in Nigeria under
the PPP framework. The second finding identifies eight (8) PPP typologies that could be
explored by investors under government’s new tolling policy. The paper concludes that the
success of any tolls collection systems depend largely on effectiveness of governance, probity
and accountability, which are core elements of responsible investment in the contemporary
times.
Keywords: Responsible Investment; Public
Nigeria.
International Journal of Economic Behavior, vol 5, n. 1, pp
International Journal of Economic Behavior, 5, n. 1, pp. 3-14, 201
RESPONSIBLE INVESTMENT (RI): AN
ALTERNATIVE FUNDING OPTION FOR
BRIDGES MANAGEMENT IN NIGERIA
UNDER THE PUBLIC-PRIVATE PARTNERSHIP
FRAMEWORK
LUKMAN RAIMI
Leicester Business School, De Montfort University
ADENIYI OLUBUNMI FADIPE
Yaba College of Technology, Yaba Lagos, Nigeria
MORUFU OLADIMEJI SHOKUNBI
Yaba College of Technology, Yaba Lagos, Nigeria
Accepted: August 27, 2014 Online Published:
Abstract
Tolling is an age long revenue collection system institutionalised by public authorities for
accumulating funds required for roads and bridges construction, maintenance and
management. In spite of the merits of tolling as a major source of revenue in Nigeria, it was
abruptly abrogated by the government few years ago because of reasons linked to ineffective
governance, endemic corruption and lack of probity. The purpose of this paper is to make a
case for responsible investment as an alternative funding mechanism for roads
management (RBM) in Nigeria under a Public-Private Partnership (PPP) framework. The
paper adopts a discursive approach, relying on government policy documents, journal
articles, online resources, working papers and reports on tolling best practices. The
numerical data were critically analysed using content analysis enriched
by tables and figures. The first finding indicates there are enormous potentials in tolls
collection from privately funded roads and bridges for responsible investors in Nigeria under
second finding identifies eight (8) PPP typologies that could be
explored by investors under government’s new tolling policy. The paper concludes that the
success of any tolls collection systems depend largely on effectiveness of governance, probity
ccountability, which are core elements of responsible investment in the contemporary
Responsible Investment; Public-Private Partnership; Roads-Bridges Managemen
International Journal of Economic Behavior, vol 5, n. 1, pp. 43-57
43
14, 201
RESPONSIBLE INVESTMENT (RI): AN
ALTERNATIVE FUNDING OPTION FOR
BRIDGES MANAGEMENT IN NIGERIA
PRIVATE PARTNERSHIP
FRAMEWORK
LUKMAN RAIMI
De Montfort University, UK
ADENIYI OLUBUNMI FADIPE
Technology, Yaba Lagos, Nigeria
MORUFU OLADIMEJI SHOKUNBI
Yaba College of Technology, Yaba Lagos, Nigeria
Online Published: April 10, 2015
by public authorities for
accumulating funds required for roads and bridges construction, maintenance and
management. In spite of the merits of tolling as a major source of revenue in Nigeria, it was
use of reasons linked to ineffective
governance, endemic corruption and lack of probity. The purpose of this paper is to make a
case for responsible investment as an alternative funding mechanism for roads-bridges
Private Partnership (PPP) framework. The
paper adopts a discursive approach, relying on government policy documents, journal
articles, online resources, working papers and reports on tolling best practices. The
ically analysed using content analysis enriched
by tables and figures. The first finding indicates there are enormous potentials in tolls
collection from privately funded roads and bridges for responsible investors in Nigeria under
second finding identifies eight (8) PPP typologies that could be
explored by investors under government’s new tolling policy. The paper concludes that the
success of any tolls collection systems depend largely on effectiveness of governance, probity
ccountability, which are core elements of responsible investment in the contemporary
Bridges Management;
57, 2015
44
1. Introduction
Roads and bridges are key infrastructural facilities required for an efficient transport system,
and they are good measurements of regional economic development (Chi and Waugaman,
2010; Federal Ministry of Works, 2013). Also, it has been observed that communities and
geographical areas surrounded by roads and bridges experienced fast regional, industrial,
environmental and residential development than areas lacking these infrastructural facilities
(Parasibu, 2005). In view of the importance of roads and bridges to nation-building and
urbanisation, immediately after independence, the Federal Government of Nigeria gave high
priority to the construction of roads and bridges in the nation’s economic development plans
and blueprints.
The commitment to road development in Nigeria is manifest in the first and second
national development plans, which made provision for construction of feeder roads and bridge
key priorities to enhance effective transportation of people and goods (Salawu et al., 2006).
Furthermore, the third and fourth national development plans earmarked substantial budget
for the construction of more roads in the rural and urban communities as well as jetties for
riverine communities for smooth movement of people and agricultural produce across the
country (Akhuemonkhan et al., 2012; Olowookere, 2012; Raimi et al., 2014). The
construction of roads and highways was also a major project of the Babangida’s
administration, which established the Directorate of Food, Roads and Rural Infrastructure
(DFRRI) as a scheme that brought relief to farmers through infrastructural development
which boosted agricultural production in Nigeria (Iwuchukwu and Igbokwe, 2012; Raimi et
al., 2014). In the same vein, the 7-point Agenda of the Yar’adua administration underscored
transport sector development with emphasis on road as a major priority (Dung-Gwom, 2010;
Dode, 2010).
The present administration of Goodluck Ebele Jonathan has equally made roads
development and rehabilitation an important segment of its transformation agenda; the regime
is credited with rehabilitation of a number of roads and bridges across the country
(Transformation Watch, 2013). The total road network in Nigeria is estimated at about
200,000km, which are owned and managed by the three levels of governments
disproportionately. The Federal Government controls 17% of the road networks (Over
34,000Km), the thirty-six (36) states owns and controls 16%; while the local governments
own and control 67% of the entire road networks (Yuguda, 2013).
The need for a sustainable management of Nigerian roads and highways led to the
erection of traditional barrier-type tollgates for tolls collection; the proceeds therefrom are
reinvested for further construction of new roads/bridges and maintenance of existing ones
(Leba, 2010; Madunagu, 2012 and Ugeh, 2013). Operation of traditional barrier-type tollgates
for maintenance of roads in Nigeria worked effectively at inception, but the tolling system in
Nigeria was rendered ineffective by public servants as a result of corruption, revenue leakages
and unmet maintenance of the tolled roads and bridges. Consequently, it was cancelled in
2004 by the regime of President Olusegun Obasanjo under the guise of proving a palliative
measure for cushioning the burden of 5% increment in the pump price of petroleum products
introduced by the government (Leba, 2010).
In the recent times however, dwindling fortunes of the federal government and the
deteriorating conditions of roads and bridges nationwide, necessitated the proposed
reintroduction of tolls by the policymakers as a realistic funding option for fixing roads and
highways sustainably. As at 2010 fiscal year, the sum of N1 trillion was estimated as costs
required to fix roads nationwide (Leba, 2010). In the same vein, the cost of construction of
federal roads and bridges from 2010 to 2013 fiscal years was estimated at N32 trillion
International Journal of
(US$2214.4 billion); and by design, the federal government, state & local governments and
private-sector investors were
respectively (Ugeh, 2013). This funding option was viewed by policymakers as unsustainable
in the face of several projects competing for government’s attention.
Another reason for rethinking tolling
success recorded by the Lagos State Government on its private
collection and management of roads along Ajah axis and the growing acceptance of public
private partnership (PPP) model as
contemporary times (Madunagu, 2012). Unlike the traditional tolling system managed by the
government, the proposed new tolling system under Public
designed to provide the country with a sustainable strategy for managing its network of roads
and bridges for the benefit of all stakeholders
(Njoku and Adegboye, 2013).
In a bid to convince Nigerians further on the desirability of tolli
PPP experiment, the Federal Ministry of Works (FMW) developed a policy document
entitled: ‘Green Paper: Federal Roads and Bridges Tolling Policy for Nigeria’. (Federal
Ministry of Works, 2013). The Green Paper provides justificatio
a viable private sector intervention designed to fund sustainably the nation’s roads and
bridges. The private sector investors judging by their antecedents are believed possess the
exposure, technology and professional comp
recover cost of construction, rehabilitation, financing, maintenance and operation of tolled
roads and highways (Ugeh, 2013; Njoku and Adegboye, 2013).
From the above overview, the purpose of this paper
investment (RI) as an alternative funding option for roads
under the Public-Private Partnership Framework. In specific terms, the paper unveils the
socio-economic merits of tolling for roa
putting in proper perspective the various PPP options opened to the responsible investors
under the newly proposed tolling policy. The two main research questions that this paper
seeks to ask are:
RQ1: Are there socio-economic merits behind the reintroduction of tolling for roads
bridges management in Nigeria?
RQ2: What are the tolling options available to responsible investors under the PPP
frameworks?
The entire paper has a total of f
rationale across the ages. Part II focuses on conceptual issues and review of literature from
scholarly works responsible investment, PPP framework and tolling
research method and analyses the
socio-economic merits of tolling under the PPP framework and the models of tolling available
to responsible investors under PPP framework. Part IV c
implication for further research, conclusion and recommendations
2. Conceptual Issues and Review of Literature
2.1. Responsible Investment
Responsible Investment (RI) or Social Responsible Investment (SRI) has emerged in the
global business environment as another investment
definitions in the management literature, but could simply be defined as
International Journal of Economic Behavior, 5, n. 1, pp. 3-14, 201
(US$2214.4 billion); and by design, the federal government, state & local governments and
sector investors were to contribute N10 trillion, N9 trillion and N13 trillion
respectively (Ugeh, 2013). This funding option was viewed by policymakers as unsustainable
in the face of several projects competing for government’s attention.
Another reason for rethinking tolling in Nigeria is not unconnected with the monumental
success recorded by the Lagos State Government on its private-sector managed tolls
collection and management of roads along Ajah axis and the growing acceptance of public
private partnership (PPP) model as a viable strategy for infrastructural management in the
contemporary times (Madunagu, 2012). Unlike the traditional tolling system managed by the
government, the proposed new tolling system under Public-Private Partnership (PPP) is
country with a sustainable strategy for managing its network of roads
and bridges for the benefit of all stakeholders - government, businesses and communities
(Njoku and Adegboye, 2013).
In a bid to convince Nigerians further on the desirability of tolling and leveraging on the
PPP experiment, the Federal Ministry of Works (FMW) developed a policy document
entitled: ‘Green Paper: Federal Roads and Bridges Tolling Policy for Nigeria’. (Federal
Ministry of Works, 2013). The Green Paper provides justification for reintroduction of tolls as
a viable private sector intervention designed to fund sustainably the nation’s roads and
bridges. The private sector investors judging by their antecedents are believed possess the
exposure, technology and professional competence to generate sufficient revenue from tolls to
recover cost of construction, rehabilitation, financing, maintenance and operation of tolled
roads and highways (Ugeh, 2013; Njoku and Adegboye, 2013).
From the above overview, the purpose of this paper is to explore prospect of responsible
investment (RI) as an alternative funding option for roads-bridges management in Nigeria
Private Partnership Framework. In specific terms, the paper unveils the
economic merits of tolling for roads-bridges management in Nigeria with a view to
putting in proper perspective the various PPP options opened to the responsible investors
under the newly proposed tolling policy. The two main research questions that this paper
economic merits behind the reintroduction of tolling for roads
bridges management in Nigeria?
What are the tolling options available to responsible investors under the PPP
entire paper has a total of four (4) parts. Part I provides a highlight on tolling and its
Part II focuses on conceptual issues and review of literature from
scholarly works responsible investment, PPP framework and tolling.
research method and analyses the numeric and non-numeric data from which findings on the
economic merits of tolling under the PPP framework and the models of tolling available
to responsible investors under PPP framework. Part IV concludes with s summary of
research, conclusion and recommendations.
Conceptual Issues and Review of Literature
Responsible Investment (RI) or Social Responsible Investment (SRI) has emerged in the
global business environment as another investment strategy. RI attracts a number of
definitions in the management literature, but could simply be defined as
45
14, 201
(US$2214.4 billion); and by design, the federal government, state & local governments and
to contribute N10 trillion, N9 trillion and N13 trillion
respectively (Ugeh, 2013). This funding option was viewed by policymakers as unsustainable
in Nigeria is not unconnected with the monumental
sector managed tolls
collection and management of roads along Ajah axis and the growing acceptance of public
a viable strategy for infrastructural management in the
contemporary times (Madunagu, 2012). Unlike the traditional tolling system managed by the
Private Partnership (PPP) is
country with a sustainable strategy for managing its network of roads
government, businesses and communities
ng and leveraging on the
PPP experiment, the Federal Ministry of Works (FMW) developed a policy document
entitled: ‘Green Paper: Federal Roads and Bridges Tolling Policy for Nigeria’. (Federal
n for reintroduction of tolls as
a viable private sector intervention designed to fund sustainably the nation’s roads and
bridges. The private sector investors judging by their antecedents are believed possess the
etence to generate sufficient revenue from tolls to
recover cost of construction, rehabilitation, financing, maintenance and operation of tolled
is to explore prospect of responsible
bridges management in Nigeria
Private Partnership Framework. In specific terms, the paper unveils the
bridges management in Nigeria with a view to
putting in proper perspective the various PPP options opened to the responsible investors
under the newly proposed tolling policy. The two main research questions that this paper
economic merits behind the reintroduction of tolling for roads-
What are the tolling options available to responsible investors under the PPP
I provides a highlight on tolling and its
Part II focuses on conceptual issues and review of literature from
. Part III states the
numeric data from which findings on the
economic merits of tolling under the PPP framework and the models of tolling available
oncludes with s summary of
Responsible Investment (RI) or Social Responsible Investment (SRI) has emerged in the
strategy. RI attracts a number of
definitions in the management literature, but could simply be defined as “an investment
46
process that seeks to achieve social and environmental objectives alongside financial
objectives” (Mercer Investment Consulting, 2007:10). In other words, RI is a deliberate and
conscious decisions by the investing public or ethical investors to put their investments
(usually pension or other life earnings) into corporations that demonstrate commitment to
responsible business practices, or those whose products and services are socially, humanly
and environmentally friendly such as investing in renewable energy sector, public utilities,
shunning problematic corporations such ammunition manufacturing firms, alcoholics and
tobacco as well as rogue multinational corporations..
From another lenses, RI represents an investment focus of “integrating environmental,
social and governance (ESG) factors into … investment processes [which is believed would]
help to improve risk-adjusted financial return” (Lake, 2007:3). However, Karch (2007) notes
that RI transcends ethical issue with regards to investment; it includes efficiency in managing
investment. Efficiency when linked to RI entails sustainability, security and improvement of
investment strategies deployed for fund management.
RI gain global acceptance with international institutions like ILO, UN, OECD et cetera. In
particular, the United Nations Principles for Responsible Investment (2007:81) state that
member countries and corporations “believe that environmental, social, and corporate
governance (ESG) issues can affect the performance of investment portfolios” as well as the
choice of investment decisions. Put differently, the scope of RI covers ethics, environment,
governance, social aspects, economics, labour rights, international and national norms (Goy,
2013). The thrust of RI is the avoidance of investments that the members of the public are
averse to, or deemed ethically unacceptable and socially irresponsible (Boersch, 2010; Goy,
2013). It could therefore be concluded that RI matches investments with ethical values and
long-term impact in the business environment. Empirical survey reveals that RI is driven
more by social wellness and welfare which are expectations greatly influenced by public
pressure than expectation of higher returns or lower risk (Boersch, 2010). On the strength of
this definition, the deteriorating conditions of Nigerian roads and bridges qualify for
responsible investment.
2.2. Public-Private Partnership
The Public-Private-Partnership (PPP) model finds theoretical groundings in the theory
of privatization. The first basis of PPP is to promote greater allocative and productive
efficiency. The second basis is to strengthen the role of the private sector to play greater role
in the economy. The third rationale of PPP framework is to improve government revenue base
or financial health leveraging on private sector funding. The fourth basis is to enable the
public authority directs its scarce resources to other important areas of governance competing
for attention (Sheshinski and López-Calva, 2003:2). Several scholars argued that when
publicly owned enterprises (POEs) are fully or partially privatized in the forms of PPP,
concessioning, joint-venture et cetera, they tend to manifest operational efficiency, greater
profitability and improved access to capital for investment purposes. Such privatized
enterprises have also recorded increased output at lower cost overtime; they have also been
able to create more employment opportunities for people and generation of greater revenue
for government’s treasury (Megginson and Netter, 2001; Kareem, 2010; Raimi et al., 2013).
Besides, privatisation leads to reduction in public spending when viewed against the
experience of the United Kingdom where privatisation of electricity resulted in a permanent
five (5) percent annual reduction in the cost of providing electricity service (Newbery and
Pollitt 1997:269). In addition, it has also been confirmed that privatisation, whether full or
partial leads to an increase in profitability of enterprises as well as increase in productivity of
such enterprises (Sheshinski and López-Calva, 2003).
International Journal of
The sustainable economic benefits
roads-bridges management in Nigeria.
in the Nigeria transport sector spanned over 14 years; it was effectively applied to revam
nation’s ports under the concessioning agreement (Kruk, 2008; Raimi et al. 2013). Nigeria’s
former Minister of Transport,
private sector because of dwindling government revenue and experti
Specifically, the former Minister canvassed support for PPP because “maintenance of…
transport infrastructure and services usually require huge financial outlay. Government alone
cannot provide all the resources required….it is economica
expedient to encourage private sector participation in the key areas that are hitherto
commonly regarded as social services. This is also in consonance with contemporary practice
all over the world, of shifting emphasis from gov
(Agbakoba, 2001:6).
Official data as shown in Table 1 and 2 provide further justification for the views above.
In Table 1, the share of construction expenditure among other expenditure heads under
economic services from 2000
recurrent expenditure on construction
(GDP) from 1961-2011 shows that funding roads solely by the government is unsustainable
and require private-sector cooperation
indicated that from 2011 to 2012, the sum of N120 billion was expended on roads
development and rehabilitation
2.3. Toll/Tolling
Tolling is an age long revenue collection s
construction and maintenance for over 2,700 years (Gilliet, 1990). Toll collection
appeared in the works of Aristotle as a common
revenue base in nations like India and
times, England introduced tolls on roads in the 14
recouping the costs of construction and maintenance of highway (
from revenue source for government,
the public (Madunagu, 2012).
et al., 2006); and has since then become acceptable user fees which guarantee stable and
sustainable streams of revenue for the maintenance of road and highways (Forkenbrock,
2004).
Table 1 – Federal Government Recurrent Expenditure on Economic Services
Function/Year 2000
Agriculture 6,335.78 16,325.60
Construction 4,991.09 17,914.96
Transport &
Communication
3,034.68 8,041.30
Other services 14,230.37 22,025.16
Total 28,591.93 64,307.02
Source: Federal Republic of Nigeria Official Gazettes, CBN (2010)
International Journal of Economic Behavior, 5, n. 1, pp. 3-14, 201
e economic benefits of PPP necessitated the call for its adoption in the
bridges management in Nigeria. It is instructive to note that application of PPP model
in the Nigeria transport sector spanned over 14 years; it was effectively applied to revam
nation’s ports under the concessioning agreement (Kruk, 2008; Raimi et al. 2013). Nigeria’s
former Minister of Transport, underscored the need for collaborative relationship with the
private sector because of dwindling government revenue and expertise (Chikwe, 2000).
Specifically, the former Minister canvassed support for PPP because “maintenance of…
transport infrastructure and services usually require huge financial outlay. Government alone
cannot provide all the resources required….it is economically prudent and financially
expedient to encourage private sector participation in the key areas that are hitherto
commonly regarded as social services. This is also in consonance with contemporary practice
all over the world, of shifting emphasis from government driven to private driven economy”
Official data as shown in Table 1 and 2 provide further justification for the views above.
In Table 1, the share of construction expenditure among other expenditure heads under
s from 2000-2010 has been rising overtime. Furthermore, the
recurrent expenditure on construction in Table 2 vis-à-vis the nation’s gross domestic product
shows that funding roads solely by the government is unsustainable
sector cooperation (Chikwe, 2000; CBN, 2011). Another official report
indicated that from 2011 to 2012, the sum of N120 billion was expended on roads
development and rehabilitation in Nigeria (Ibya, 2013).
revenue collection system (toll) adopted by many civilizations for roads
construction and maintenance for over 2,700 years (Gilliet, 1990). Toll collection
appeared in the works of Aristotle as a common practice in the classical era for boosting the
revenue base in nations like India and Roman Empire (Munroe, et al., 2006). In the modern
times, England introduced tolls on roads in the 14th century as a form of tax for the purpose of
f construction and maintenance of highway (Bernstein, 2010).
from revenue source for government, tolling provides avenue for job creation for members of
adunagu, 2012). Tolls started in Lancaster, United States in the 1790s (Munroe,
l., 2006); and has since then become acceptable user fees which guarantee stable and
sustainable streams of revenue for the maintenance of road and highways (Forkenbrock,
Federal Government Recurrent Expenditure on Economic Services
2005 2006 2007 2008
Economic Services
16,325.60 17,900.00 32,500.00 65,400.00 22,440.00
17,914.96 20,100.00 71,300.00 94,500.00 80,630.00
8,041.30 9,800.00 32,200.00 67,400.00 90,030.00
22,025.16 31,900.00 43,100.00 86,500.00 124,100.00
64,307.02 67,801.78 83,518.19 313,800.00 317,200.00
Source: Federal Republic of Nigeria Official Gazettes, CBN (2010)
47
14, 201
necessitated the call for its adoption in the
It is instructive to note that application of PPP model
in the Nigeria transport sector spanned over 14 years; it was effectively applied to revamp that
nation’s ports under the concessioning agreement (Kruk, 2008; Raimi et al. 2013). Nigeria’s
underscored the need for collaborative relationship with the
se (Chikwe, 2000).
Specifically, the former Minister canvassed support for PPP because “maintenance of…
transport infrastructure and services usually require huge financial outlay. Government alone
lly prudent and financially
expedient to encourage private sector participation in the key areas that are hitherto
commonly regarded as social services. This is also in consonance with contemporary practice
ernment driven to private driven economy”
Official data as shown in Table 1 and 2 provide further justification for the views above.
In Table 1, the share of construction expenditure among other expenditure heads under
2010 has been rising overtime. Furthermore, the rising
vis the nation’s gross domestic product
shows that funding roads solely by the government is unsustainable
Another official report
indicated that from 2011 to 2012, the sum of N120 billion was expended on roads
civilizations for roads
construction and maintenance for over 2,700 years (Gilliet, 1990). Toll collection had long
practice in the classical era for boosting the
Roman Empire (Munroe, et al., 2006). In the modern
century as a form of tax for the purpose of
Bernstein, 2010). Apart
enue for job creation for members of
Tolls started in Lancaster, United States in the 1790s (Munroe,
l., 2006); and has since then become acceptable user fees which guarantee stable and
sustainable streams of revenue for the maintenance of road and highways (Forkenbrock,
Federal Government Recurrent Expenditure on Economic Services
2009 2010
22,440.00 29,560.00
80,630.00 138,050.00
90,030.00 178,700.00
124,100.00 238,680.00
317,200.00 584,990.00
48
Table 2 – Federal Government Recurrent Expenditure on Construction
Year Construction
N Million
GDP N Million
1961 0.59 2,361.20
1965 25.29 3,110.00
1970 14.28 5,205.10
1975 31.97 20,957.00
1980 46.03 49,632.30
1985 151.11 70,633.20
1990 643.40 271,908.00
1995 1,699.10 1,934,831.00
2000 4,991.09 4,727,523.00
2001 7,202.04 5,374.335.00
2002 7,452.14 6,232.244.00
2003 16,951.37 6,061.700.00
2004 14,897.01 11,411,067.00
2005 17,914.96 15,610,882.00
2006 20,100.00 18,564,595.00
2007 71,300.00 20,657.317.00
2008 94,500.00 24,296,329.00
2009 80,630.00 24,794,238.00
2010 138,050.00 29,205,782.00
2011 195,900.00 33,994,612.00
Sources: Federal Republic of Nigeria Official Gazettes, CBN (1961-2011)
]
The roads on which tolls are collected are called toll roads, turnpikes, tollbooths,
tollhouses and tollways (Gilliet, 1990; Jenkinson and Taylor, 2010). Toll is conceived as a
medium for recouping the cost of building of roads and provides sustainable means for
managing the roads, as well as avenue for job creation for the citizenry ((Madunagu, 2012).
Besides, tolls is preferred irrespective of country because they have lower evasion rate
compared to income taxes; it is relatively cost effective for government and payers; tolls
ensure privacy of payers and its implementation process is easy and convenient for all
stakeholders (Peters et al., 2006). Forkenbrock (2004) argued that tolls have become
acceptable user fees which guarantee stable and sustainable streams of revenue for
maintenance of road and highway system.
As notable as the policy of tolling is for national development, Roth (1998) noted that it
suffers a lot of criticisms. One, it requires vehicle owners to slow down, thereby wasting the
time of vehicle owners and building up operating costs of vehicles. Two, it is at times
uneconomical because the cost of tolls collection could be as much as one-third of revenues
because of the problem of probity and revenue theft. Three, where toll-free roads coexist with
tolled roads, the latter becomes useless as people utilise the free toll roads. Tolled roads with
the aid of electronic sensors track for monitoring the movement of cars constitute
infringement on the freedom and privacy of road users. In spite of all the criticisms levelled
against tolling, it still offers governments across the world a convenient template for
recouping and generating further funding for roads, bridges and other transport infrastructural
projects. Toll collection systems are many and diverse in the transport literature. The major
typologies of tolls collection systems include: (a) manual toll collection (b) mechanical coin
collection (c) traditional barrier electronic toll collection, (d) slow speed electronic toll
International Journal of
collection (e) high speed electronic toll
Kramer, 2005; Peters et al., 2006). Explanations of the distinctions between
typologies are discussed hereunder.
a) Manual Toll Collection System (MTCS):
cash or coin by human beings at designated tollgates or booths. It is the commonest toll
system across developing countries and few industrialized nations. The major disadvantages
of the manual tolling system are the requirement for vehicles to be at complete halt to make
payments; the slow processing time; huge wage bills of human collectors;
monitoring cash to avoid revenue leakages;
and the impact of pollution from deceleration and reacceleration of vehicles
b) Mechanical Coin Collection System (MCCS):
collection system refers to the collection of tolls at tollbooths using automated counting
machine programmed to accepts highway authority
The automated machines collect tolls faster than human toll collectors and are able to process
tolls at faster rate than the humans. The main setback of this system is that it
to fully decelerate and require drivers to insert coins or tokens before speeding off.
c) Traditional barrier electronic toll collection system (TBECS):
tolling system that allows collection of tolls at tollboot
lift gate that allows passage of vehicles after
Meanwhile, its major disadvantage is that the cost of administration is high because it requires
complete halt for processing of ch
d) Slow Speed Electronic Toll Collection System (SSETCS):
system in use in several industrialized nations. This system allows collection of tolls at speed
that is less than the normal road speed of
collection system, a data reader is mounted at strategic area at tollgates which process
electronic collection of tolls while the vehicles slow down as low as 5 to 15 miles per hour
speed after which they are allowed to leave the toll facility. It has a higher processing speed
than the traditional barrier electronic toll collection system. The SSETCS attends to as much
as 1200 vehicles per hour.
e) High Speed Electronic Toll Collection System (HSETCS):
electronic tolling system which allows collection of tolls at full highway speed without
stopping by the tollbooths. For the
tollbooths, but toll collection readers are mounted on
processing of tolls at full highway speeds. This is the best toll collection system in several
industrialized nations because of convenience for drivers, cost effectiveness of toll collection,
minimal labour cost and capability to process at least 2200 vehicles per hour.
2.4. Relationships between Tolling, RI and PPP
The relationship between tolling, RI and PPP is complementary. In the face of dwindling
public funding of roads and bridges, other viable funding options
by Figure 1. For individuals who favour ethical investment that would improve quality of life
of the citizens in developing nations with infrastructural deficit, the option of RI is very
attractive. However, for investors who see
development with good return on investment, the option of PPP finds relevance.
International Journal of Economic Behavior, 5, n. 1, pp. 3-14, 201
high speed electronic toll collection (Peters and Kramer, 2003;
et al., 2006). Explanations of the distinctions between
typologies are discussed hereunder.
Manual Toll Collection System (MTCS): This refers to the collection of tolls manually in
cash or coin by human beings at designated tollgates or booths. It is the commonest toll
system across developing countries and few industrialized nations. The major disadvantages
stem are the requirement for vehicles to be at complete halt to make
payments; the slow processing time; huge wage bills of human collectors;
to avoid revenue leakages; the generally slow speed, high compliance cost;
act of pollution from deceleration and reacceleration of vehicles
Mechanical Coin Collection System (MCCS): Unlike the first type, the mechanical coin
system refers to the collection of tolls at tollbooths using automated counting
accepts highway authority-specific tokens or exact coin transactions
The automated machines collect tolls faster than human toll collectors and are able to process
tolls at faster rate than the humans. The main setback of this system is that it
to fully decelerate and require drivers to insert coins or tokens before speeding off.
Traditional barrier electronic toll collection system (TBECS): This refers to an electronic
tolling system that allows collection of tolls at tollbooths through an electronically operated
lift gate that allows passage of vehicles after the users’ accounts have been charged.
Meanwhile, its major disadvantage is that the cost of administration is high because it requires
complete halt for processing of charges to forestall mistakes.
Slow Speed Electronic Toll Collection System (SSETCS): This is an electronic tolling
system in use in several industrialized nations. This system allows collection of tolls at speed
that is less than the normal road speed of vehicles. For the operation of slow speed electronic
collection system, a data reader is mounted at strategic area at tollgates which process
electronic collection of tolls while the vehicles slow down as low as 5 to 15 miles per hour
y are allowed to leave the toll facility. It has a higher processing speed
than the traditional barrier electronic toll collection system. The SSETCS attends to as much
High Speed Electronic Toll Collection System (HSETCS): This is another variant of
electronic tolling system which allows collection of tolls at full highway speed without
stopping by the tollbooths. For the high speed electronic collection system, there are no
tollbooths, but toll collection readers are mounted on erected gantries which facilitate
processing of tolls at full highway speeds. This is the best toll collection system in several
industrialized nations because of convenience for drivers, cost effectiveness of toll collection,
bility to process at least 2200 vehicles per hour.
Relationships between Tolling, RI and PPP
The relationship between tolling, RI and PPP is complementary. In the face of dwindling
public funding of roads and bridges, other viable funding options are RI and PPP
. For individuals who favour ethical investment that would improve quality of life
of the citizens in developing nations with infrastructural deficit, the option of RI is very
attractive. However, for investors who seek joint venture businesses in infrastructural
development with good return on investment, the option of PPP finds relevance.
49
14, 201
and Kramer, 2003; Peters and
et al., 2006). Explanations of the distinctions between the various toll
This refers to the collection of tolls manually in
cash or coin by human beings at designated tollgates or booths. It is the commonest toll
system across developing countries and few industrialized nations. The major disadvantages
stem are the requirement for vehicles to be at complete halt to make
payments; the slow processing time; huge wage bills of human collectors; the cost of
the generally slow speed, high compliance cost;
act of pollution from deceleration and reacceleration of vehicles.
Unlike the first type, the mechanical coin
system refers to the collection of tolls at tollbooths using automated counting
specific tokens or exact coin transactions.
The automated machines collect tolls faster than human toll collectors and are able to process
tolls at faster rate than the humans. The main setback of this system is that it requires vehicles
to fully decelerate and require drivers to insert coins or tokens before speeding off.
This refers to an electronic
electronically operated
the users’ accounts have been charged.
Meanwhile, its major disadvantage is that the cost of administration is high because it requires
This is an electronic tolling
system in use in several industrialized nations. This system allows collection of tolls at speed
slow speed electronic
collection system, a data reader is mounted at strategic area at tollgates which process
electronic collection of tolls while the vehicles slow down as low as 5 to 15 miles per hour
y are allowed to leave the toll facility. It has a higher processing speed
than the traditional barrier electronic toll collection system. The SSETCS attends to as much
is another variant of
electronic tolling system which allows collection of tolls at full highway speed without
high speed electronic collection system, there are no
erected gantries which facilitate
processing of tolls at full highway speeds. This is the best toll collection system in several
industrialized nations because of convenience for drivers, cost effectiveness of toll collection,
bility to process at least 2200 vehicles per hour.
The relationship between tolling, RI and PPP is complementary. In the face of dwindling
are RI and PPP as depicted
. For individuals who favour ethical investment that would improve quality of life
of the citizens in developing nations with infrastructural deficit, the option of RI is very
k joint venture businesses in infrastructural
development with good return on investment, the option of PPP finds relevance.
50
Figure 1 – The relationship between tolling, RI and PPP
Source: Authors
3. Methods & Materials
This research adopts a qualitative research method,
adopts a discursive approach, relying on government policy documents, journal articles,
online resources, working papers and reports on tolling best practices. The
non-numerical data were critically analysed using content analysis enriched by tables and
figures on the basis of which insightful findings on the subject were established.
3.1. Results/Findings and Discussion
The summary of findings arisi
discussed below.
3.2. Socio-economic Merits of Tolling for Roads Sustainability
With regards to Nigeria, the new tolling system has greater socio
foremost, it shall be based on PPP framework, designed as a joint venture partnership between
Federal Government and private sector individuals. Secondly, reintr
certain roads and bridges in Nigeria is believed would create massive jobs for Nigerians
(Madunagu, 2012). Besides, it is believed in policy circles that tolling policy under the PPP
model has the inherent potential of attracting Forei
responsible investors into the country thereby creating massive investment opportunities as
well as acting as catalyst for the growth of the private sector (Ugeh, 2013). For prospective
local and foreign investors, Tables 3,
for responsible investment under the PPP model across Nigeria.
Analysts note that tolling is a pragmatic means of boosting government revenue required
for developing, building, managing and maintain
2013). Secondly, it is stated that, when road projects are financed through tolls collection it
would serve as viable strategy for recouping the cost of the road projects over a period of time
(Munroe et al., 2006). Considering the fact that tolls are invested on roads development, its
collection facilitates better mobility of vehicles as well as provides reliable finance for
transportation investment (Chi and Waugaman, 2010).
RI
The relationship between tolling, RI and PPP
Methods & Materials
This research adopts a qualitative research method, relying on inductive approach.
adopts a discursive approach, relying on government policy documents, journal articles,
online resources, working papers and reports on tolling best practices. The
numerical data were critically analysed using content analysis enriched by tables and
figures on the basis of which insightful findings on the subject were established.
Results/Findings and Discussion
The summary of findings arising from the analysis of the numeric and non
economic Merits of Tolling for Roads Sustainability
With regards to Nigeria, the new tolling system has greater socio-economic benefits. First and
foremost, it shall be based on PPP framework, designed as a joint venture partnership between
Federal Government and private sector individuals. Secondly, reintroduction of tolls on
certain roads and bridges in Nigeria is believed would create massive jobs for Nigerians
adunagu, 2012). Besides, it is believed in policy circles that tolling policy under the PPP
model has the inherent potential of attracting Foreign Direct Investment (FDI) from
responsible investors into the country thereby creating massive investment opportunities as
well as acting as catalyst for the growth of the private sector (Ugeh, 2013). For prospective
local and foreign investors, Tables 3, 4 and 5 provide highlight on roads and bridges available
for responsible investment under the PPP model across Nigeria.
Analysts note that tolling is a pragmatic means of boosting government revenue required
for developing, building, managing and maintaining roads and bridges (Njoku and Adegboye,
2013). Secondly, it is stated that, when road projects are financed through tolls collection it
would serve as viable strategy for recouping the cost of the road projects over a period of time
). Considering the fact that tolls are invested on roads development, its
collection facilitates better mobility of vehicles as well as provides reliable finance for
transportation investment (Chi and Waugaman, 2010).
PPP Tolling
relying on inductive approach. The paper
adopts a discursive approach, relying on government policy documents, journal articles,
online resources, working papers and reports on tolling best practices. The numerical and
numerical data were critically analysed using content analysis enriched by tables and
figures on the basis of which insightful findings on the subject were established.
ng from the analysis of the numeric and non-numeric data are
economic benefits. First and
foremost, it shall be based on PPP framework, designed as a joint venture partnership between
oduction of tolls on
certain roads and bridges in Nigeria is believed would create massive jobs for Nigerians
adunagu, 2012). Besides, it is believed in policy circles that tolling policy under the PPP
gn Direct Investment (FDI) from
responsible investors into the country thereby creating massive investment opportunities as
well as acting as catalyst for the growth of the private sector (Ugeh, 2013). For prospective
4 and 5 provide highlight on roads and bridges available
Analysts note that tolling is a pragmatic means of boosting government revenue required
ing roads and bridges (Njoku and Adegboye,
2013). Secondly, it is stated that, when road projects are financed through tolls collection it
would serve as viable strategy for recouping the cost of the road projects over a period of time
). Considering the fact that tolls are invested on roads development, its
collection facilitates better mobility of vehicles as well as provides reliable finance for
Tolling
International Journal of
Table 3 – Ongoing PPP Highway Projects
SN ROADS/BRIDGES
1
Reconstruction & Expansion of Lagos
Ibadan Expressway
2 Guto – Bagana Bridge across Benue River
PPP Projects Under Procurement
1
Construction of 2nd Niger bridge at Asaba
Onitsha
2
Access Road to Murtala Mohammed Int
Airport (MMIA) Road, Ikeja
3
Construction of bridge over River Niger at
Nupeko, Niger State
Source: Federal Ministry of Work in Yuguda (2013:22)
Table 4 – Proposed PPP highway projects with Ongoing Feasibility/Viability Studies
SN ROADS/BRIDGES
1 Bodo-Bonny Road to Link Bodo to the
Island of Bonny in Rivers state
2 Dualizat. of Ilorin-Jebba
3 Dualization of Keffi-Akwanga
Makurdi Road
4 Dualization of Lokoja-Ajaokuta
Enugu (9th Mile) Road
5 Dualization of Akwanga
6 Dualization of Enugu ( 9
– Makurdi Road
7 Dualization of Owerri –
8 Phase I : 2nd Lagos outer ring Road: Tin Can
Island – Igando - Lagos/Otta road and
Lagos/Ibadan expressway
9 Phase II : 2nd Lagos outer ring Road
i) Lekki-Epe Expressway Linking Existing
Lekki-Epe Expressway/
Deep Sea Port
ii) 5th Mainland Bridge
10 Golden Triangle (Economic) Highways
Source: Federal Ministry of Work in Yuguda (2013
International Journal of Economic Behavior, 5, n. 1, pp. 3-14, 201
PPP Highway Projects
ROADS/BRIDGES DISTANCE
Reconstruction & Expansion of Lagos –
126Km
Newly Awarded on EPC basis.
O & M Concession
awarded.
Bagana Bridge across Benue River
1.35km
Bridge &
65Km Road
Concession is being reviewed
& will be awarded.
PPP Projects Under Procurement
Niger bridge at Asaba -
2Km Newly Awarded
Access Road to Murtala Mohammed Intern.
Airport (MMIA) Road, Ikeja, Lagos
2.8Km
Award of Concession in
progress
Construction of bridge over River Niger at
950m
OBC development phase in
progress.
Source: Federal Ministry of Work in Yuguda (2013:22)
PPP highway projects with Ongoing Feasibility/Viability Studies
ROADS/BRIDGES DISTANCE
Bonny Road to Link Bodo to the
Island of Bonny in Rivers state
39 Km Outline Business Cases
(OBC) studies in progress
Jebba-Mokwa-Kaduna Rd 597 km OBC ready
Akwanga-Lafia- 215 km OBC ready
Ajaokuta-Ogbulafo-
238 Km OBC is being carried out
Dualization of Akwanga-Jos Road 145 Km OBC is being carried out
Dualization of Enugu ( 9th Mile ) – Otukpo 261 Km OBC is being carried out.
– Aba Road 60 Km OBC is being carried out.
Lagos outer ring Road: Tin Can
Lagos/Otta road and
Lagos/Ibadan expressway
74 Km OBC is ready
Lagos outer ring Road
Epe Expressway Linking Existing
Epe Expressway/Proposed Lekki
25 Km
Road: 20 Km
Bridge: 5K m
Consultancy for Feasibility
Studies ongoing
Golden Triangle (Economic) Highways Various
(5000Km)
Consultants will be appointed
to carry out Feasibility
Studies
Source: Federal Ministry of Work in Yuguda (2013;27)
51
14, 201
REMARKS
Newly Awarded on EPC basis.
O & M Concession - to be
awarded.
Concession is being reviewed
& will be awarded.
Newly Awarded
Award of Concession in
progress
OBC development phase in
progress.
PPP highway projects with Ongoing Feasibility/Viability Studies
REMARKS
Outline Business Cases
studies in progress
OBC ready
OBC ready
OBC is being carried out
OBC is being carried out
OBC is being carried out.
OBC is being carried out.
OBC is ready
Consultancy for Feasibility
Studies ongoing
Consultants will be appointed
to carry out Feasibility
Studies for best actualization
52
Table 5 – Proposed PPP highway projects with outline business cases (OBC)
SN ROADS/BRIDGES DISTANCE REMARKS
1 Enugu – Port Harcourt Dual Carriageway 210Km Outline business cases
(OBC) development in
progress.
2 Lagos – Iseyin – Kishi – Kaiama Road 414Km OBC development in
progress.
3 Kiama – Bahama – Kaoje – Gwambu –
Fokku – Sokoto Road
631Km OBC development in
progress
4 Construction of bridge over River Benue at
Buruku, Benue State
1Km OBC development in
progress
5 Construction of bridge over River Benue at
Ibi along Shendam - Wukari Road
880m OBC development in
progress
Source: Federal Ministry of Work in Yuguda (2013:23)
3.3. Tolling and PPP Models
The prevalent PPP models that responsible investors could adopt which has records of success
across the globe with reasonable level of success include: Build-and-Transfer (BT), Build-
Lease-Transfer (BLT), Lease-Operate-Transfer (LOT), Build-Operate-and-Transfer (BOT),
Build-Own-Operate-Transfer (BOOT), Build-Own-Operate (BOO), Build-Operate-Share-
Transfer (BOST) and Build-Own-Operate-Share-Transfer (BOOST) (Agbakoba, 2001;
Infrastructure Development Department, 2009; Raimi et al., 2013). In-depth explanation of
each of the ten models is presented below (Figure 2).
a) Build-and-Transfer (BT): This is a contractual arrangement where the public-private
partners (as an entity) undertakes the financing and construction of roads and bridges as
the case may be, and after its completion turns it over to the government, which pays the
private sector investors based on mutually agreed timeline. BT allows the investors to
retrieve the total investments expended on roads and bridges, plus a reasonable rate of
return to compensate them for their efforts.
b) Build-Lease-and-Transfer (BLT): This is a PPP arrangement whereby the public authority
authorizes private sector investors to finance and construct roads and bridges and upon
their completion, the government grant a lease arrangement for fixed period after which
ownership of the roads and bridges are automatically transferred back to the government.
c) Lease-Operate-Transfer (LOT): This is another PPP arrangement where existing road and
bridges are handed over to qualified private sector operators for a determined period as
leased facility. The investors run the roads recouping their returns on investments as tolls.
The financial returns on the roads to the government later on would be in the form of
rents or royalties. At the expiration of the LOT agreement, the tolled roads are returned to
the government.
d) Build Operate and Transfer (BOT): This is a PPP arrangement where the private sector
investors undertake the construction and financing of roads, operation and maintenance
thereof on the basis of a contractual agreement with the government authority. The
private sector investors then operate the roads over a specified period during which they
International Journal of
are allowed to charge appropriate tolls
the costs of investment with reasonable returns from the project.
e) Build-Own-Operate-and-Transfer (BOOT):
private sector investors undertake
operation and maintenance over a specified
the facility is finally transferred, at no cost to the government. During the
period the private investors technically
tolls for recouping the costs of investment, operational maintenance
of profit.
f) Build-Own-and-Operate (BOO):
sector investors are authorized
maintain roads or bridges
of construction and maintenance. In this model of PPP, the private sectors own and
operate the infrastructure with making tr
g) Build-Operate-Share-Transfer (BOST):
government authorizes private investors to finance, construct, operate and maintain, share
the revenue collected from roads
government at the end of the contractual period. The BOST agreement like other model
allows the private sector investors to recover their total costs of investment plus
reasonable returns thereon
h) Build-Own-Operate-Share
private sector investors are
share a part of the revenue
the roads infrastructure at th
sector investor leeway to recover its total investment, operating and maintenance costs
plus a reasonable return thereon by collecting tolls.
Figure 2 –Eight PPP Models
Source: Authors.
BOS
International Journal of Economic Behavior, 5, n. 1, pp. 3-14, 201
appropriate tolls as stipulated in the contract to ena
investment with reasonable returns from the project.
Transfer (BOOT): This is another PPP arrangement
undertake as usual the tasks of roads construction, financing,
peration and maintenance over a specified period of time. At the period of expiration,
the facility is finally transferred, at no cost to the government. During the
private investors technically owns the roads and operate the roads
recouping the costs of investment, operational maintenance and
Operate (BOO): This is a contractual arrangement whereby a privat
authorized by government to finance, construct, own, operate and
from which the they are allowed to charge tolls in order to costs
of construction and maintenance. In this model of PPP, the private sectors own and
operate the infrastructure with making transfer to government.
Transfer (BOST): This is a contractual arrangement where public
government authorizes private investors to finance, construct, operate and maintain, share
from roads as tolls with government and transfer the roads to
government at the end of the contractual period. The BOST agreement like other model
allows the private sector investors to recover their total costs of investment plus
reasonable returns thereon.
Share-Transfer (BOOST): In this type of PPP arrangement, the
s are authorized to finance, construct, own, operate and maintain,
share a part of the revenue collected on tolled roads with government and then transfer
infrastructure at the end of the agreed period. The BOOST model allows private
sector investor leeway to recover its total investment, operating and maintenance costs
rn thereon by collecting tolls.
Models
BT
BLT
LOT
BOT
BOOT
BOO
BOST
BOOST
53
14, 201
as stipulated in the contract to enable them recover
arrangement, where the
construction, financing,
. At the period of expiration,
the facility is finally transferred, at no cost to the government. During the contractual
the roads and operate the roads charging
and desirable margin
This is a contractual arrangement whereby a private
to finance, construct, own, operate and
they are allowed to charge tolls in order to costs
of construction and maintenance. In this model of PPP, the private sectors own and
This is a contractual arrangement where public
government authorizes private investors to finance, construct, operate and maintain, share
and transfer the roads to
government at the end of the contractual period. The BOST agreement like other model
allows the private sector investors to recover their total costs of investment plus
In this type of PPP arrangement, the
authorized to finance, construct, own, operate and maintain,
with government and then transfer
e end of the agreed period. The BOOST model allows private
sector investor leeway to recover its total investment, operating and maintenance costs
54
4. Conclusions, policy recommendations and implications for further
research
The conclusions from this study are largely based on the qualitative analysis and assessment
of the numerical and non-numerical data. The findings indicate that private sector tolling
(especially the electronic tolls collection system) has the potential of providing the needed
sustainable funding for roads construction, maintenance and management in Nigeria in the
face of dwindling public funding for roads. Secondly, it has been proven that tolling is a
viable measure for stimulating massive employment for the citizens. Besides, tolled roads
have the potentials of accelerating urbanisation, fast regional, industrial, environmental and
residential development. In order to optimize the benefits of tolling as discussed earlier, the
following recommendations are suggested.
i. The private sector tolling agreement on roads/bridges built on PPP agreement should
be based on Infrastructure Concession Regulatory Commission Act (2005), UNIDO
Guidelines for Infrastructure Development on Build Operate Transfer (BOT) Projects
(1996) and other international protocols on PPP and IR. The Global Best Practices for
PPP and RI must be followed because there are scandals that followed previous
privatisation and concessioning agreements in Nigeria.
ii. For tolling investment to be genuinely responsible, it is suggested that investments
should be based on Core Principles and Best Practices as contained in the European
Commission Guidelines for Successful Public-Private Partnerships, 2003; European
Commission Green Paper on Public-Private Partnerships and Community Law on
Public Contracts and Concessions, 2004.
iii. The Federal Government should create an enabling and competitive business
environment for attracting responsible investors (locally and internationally). This
suggestion is hinged on the presumption that political stability, security and respect for
rule of law are critical factors that influences investment decision at individual,
corporate and governmental levels.
iv. Both the political leadership and the implementers of Nigeria’s tolling policy should
avoid the mistake of the past especially ports concessioning, privatization policy and
other government development policies.
v. The Federal Ministry of Works should set up an effective monitoring and evaluation
process for implementing the tolling policy programme in Nigeria. In other word, due
process must be followed at every stage of the implementation of the PPP framework.
vi. Government and its agencies should study the implications of tolling on the residential
communities, ordinary people and the host communities to avert the crisis experience
of Ajah tolls in Lagos State, which has a pending court case.
The next stage of this research is to subject the qualitative findings to empirical testing.
For this to be achieved a survey especially the use of structured questionnaires is required for
eliciting the opinions of end-users and policymakers on the proposed reintroduction of tolling
in Nigeria under the PPP framework. The present findings and the outcomes of the proposed
empirical study shall be compared on the basis of which sound conclusions on the proposed
reintroduction of tolling shall be made. The paper has established that the success of any tolls
collection systems depend largely on effectiveness of governance, probity and accountability,
which are core elements of responsible investment in the contemporary times.
International Journal of
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