The Central Bank of Nigeria (CBN), says many roads constructed across the country with borrowed funds will be tolled to generate money for repayment of the loans used for the project.
Governor of CBN, Godwin Emefiele, disclosed this on Wednesday after a retreat of the Bankers’ Committee in Lagos.
He justified the tolling option noting that it was the standard practice globally “Most of those roads will be tolled and we know that in many other countries in the world, roads are tolled because those projects are commercially viable.”
“Loans can be refunded with tolls so that maintenance can be done on a regular basis, and people will pay for it and enjoy good roads, and enjoy good facilities because that is the only way we can fund the infrastructure of this country, which is the large amount of money that is needed.” The Apex Bank governor said.
He expressed the desire of the banking sector to assist the government and the private sector in raising funds without taking from the Federal Government’s account.
“Within the financial system, there is a lot of idle funds that can be channeled, if packaged the way the Infrastructure Corporation of Nigeria Limited has been set up to give comfort to the local investors to put their funds in the project.” Emefiele noted.
He said most of the funds would be in naira because the banks and pension fund administrators have large pool of funds, and most of the funds can be raised locally before the country begins to think of accessing international finance.