Government toll policy sparks outrage amid economic hardship

In this piece, HENRY FALAIYE critically explores the Federal Government’s contentious plan to reintroduce tolls on federal highways spanning all six geopolitical zones of the country

On February 4, 2025, the Minister of Works, David Umahi, announced that the Abuja-Kaduna-Kano highway and other major roads across the country will be tolled when they are 100 per cent completed to ensure proper maintenance.

According to Umahi, the Federal Government of Nigeria officially commenced tolling operations on the 227.2 km Abuja-Keffi-Akwanga-Lafia-Makurdi Highway, marking a significant shift in the nation’s transportation policy.

“The initiative aims to generate revenue for road maintenance and repay the $460.8m loan secured from the China Exim Bank for the road’s rehabilitation and upgrade,” the minister said.

He explained that the toll rates are structured as follows: saloon cars will pay N500; sports utility vehicles and jeeps, N800; minibuses, N1,000; and multi-axle vehicles, N1,600. Certain categories of vehicles, including security, diplomatic, ambulances, and tricycles, are exempted from the tolls.

According to him, commercial light vehicles, as defined under the Federal Highway Act, will enjoy a 50 per cent discount. Authorised bicycles, pedal cycles, tricycles, motorcycles, and other modes of two- or three-wheeled transport used by mainly disadvantaged populations will be offered a 100 per cent discount.

The Federal Government has emphasised that the revenue generated from these tolls will be channelled into maintaining federal roads across the country. In 2023, a 25-year “Operate and Maintain” concession agreement was finalised with China Harbour Operations and Maintenance Company Limited, in partnership with Catamaran Nigeria Limited, to oversee the road’s functionality.

However, the introduction of tolls has sparked a spectrum of reactions from various stakeholders, reflecting the complex interplay between infrastructure development, economic realities, and public sentiment.

The Human Rights Writers Association of Nigeria has strongly criticised the Federal Government’s decision, describing the policy as exploitative and unjustifiable.

Reacting to the announcement by the Minister of Works, David Umahi, that key roads across Nigeria’s six geopolitical zones and economic corridors would be tolled, HURIWA accused the government of further burdening already struggling citizens. In a statement issued by its National Coordinator, Emmanuel Onwubiko, the group condemned the move, highlighting the severe economic difficulties Nigerians have endured since President Bola Tinubu took office.

“The government has failed to provide basic social infrastructure but continues to impose policies that punish the masses. Poor Nigerians, who depend heavily on road transport, will suffer the most from this tolling policy,” Onwubiko declared.

“The absence of alternative transport systems such as functional railways or affordable air travel makes road tolling nothing but wickedness,” Onwubiko asserted, accusing the government of enriching political allies and contractors under the guise of road concessions.

HURIWA urged the Federal Government to suspend the tolling plan and instead address corruption and mismanagement in the Ministry of Works to ensure proper road maintenance. “Policies should alleviate suffering, not deepen it,” Onwubiko concluded.

HURIWA pointed to the removal of the fuel subsidy in May 2023, which saw petrol prices skyrocket from N190 to over N1,000 per litre, triggering inflation and worsening economic hardship. The group also slammed the Nigerian Electricity Regulatory Commission for hiking electricity tariffs from N66 to N225 per kilowatt-hour for Band A customers in April 2024 and criticised the Nigerian Communications Commission for approving a 50 per cent increase in telecom charges. It noted that soaring fuel prices and worsening road conditions have already doubled transportation costs nationwide.

The President of the Trade Union Congress, Comrade Festus Osifo, also criticised the federal government’s decision to introduce tolling without first ensuring the roads are in good condition.

Speaking at the 1st Quarter 2025 National Administrative Council meeting recently in Abuja, Osifo attributed the country’s economic hardship to government policies, including the naira flotation.

While voicing his frustration, he condemned the move as unjust, highlighting that many of the roads slated for tolling are unpaved, deteriorating, and filled with potholes.

Osifo further challenged the government on why policies impacting citizens were being enforced without meaningful engagement with relevant stakeholders.

A communiqué issued at the end of the meeting stated, “The NAC deliberated on the proposed reintroduction of toll gates on selected federal roads and strongly condemned the decision in its entirety. While tolling is a globally recognised means of generating revenue for road maintenance, it is unacceptable to impose tolls on roads that are in severe disrepair.

“The NAC considers this an insult to Nigerians, who are being asked to pay tolls on roads that are unsafe, abandoned, and filled with potholes. Instead of fulfilling its duty to repair and maintain these roads, the government is resorting to blatant extortion.

“The Congress, therefore, demands that all roads designated for tolling must first be properly repaired, tarred, and brought up to international standards before any discussions on tolling can take place.”

Hafis Yakub, an interstate bus driver at Oshodi Motor Park, opined that the Federal Government’s decision to introduce highway tolling will inevitably lead to higher transportation costs.

“The Federal Government collecting tolls will increase the cost of transportation,” Yakub stated. He explained that passengers were already struggling with the recent hike in transport fares due to soaring fuel prices and poor road conditions. Introducing tolls, he argued, would only add to their financial burden, as transporters would have no choice but to pass on the extra costs to commuters.

“Passengers are still complaining about the high cost of transportation, and now with this tolling policy, it will create even more hardship because, in the end, they will be the ones indirectly paying for it,” he added.

Yakub called on the government to consider the economic realities facing Nigerians before implementing the tolling policy. He urged authorities to ensure that any revenue generated is strictly used for road maintenance and that the toll rates remain reasonable to prevent further hardship for road users.

Mrs Taiwo Danjuma, a trader, expressed strong disapproval of the decision to toll highways, arguing that it is poorly timed given the current economic hardship.

Danjuma lamented that with the soaring cost of living, many Nigerians are already struggling to make ends meet, and adding toll charges would only worsen their financial burden, especially for people who travel frequently.

Also, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, weighed in, stating that while the move is necessary for road maintenance, it must be carefully implemented to avoid undue hardship on motorists and transporters.

According to Yusuf, poor road maintenance has been a persistent challenge, and relying solely on budgetary allocations to fix roads is unsustainable. “Road maintenance has become a major issue, and when roads are poorly maintained, the costs to motorists and transporters will be much higher than the toll itself,” he noted.

He pointed out that the Federal Roads Maintenance Agency requires adequate funding, and toll revenue could serve as a vital source of financing for road repairs and upgrades.

However, he emphasised that the government must be strategic about where tolls are placed. “You cannot put a toll where there is heavy traffic; otherwise, you create a problem of congestion,” he cautioned.

The CPPE boss cited instances where tolling has worsened traffic in some locations, warning that placing toll gates within cities could lead to severe gridlock. Instead, he suggested that tolling should be limited to highways with alternative routes to minimise disruption.

Yusuf also acknowledged the financial strain many Nigerians are experiencing and stressed that any toll charges should be reasonable. “All over the world, there are toll roads and road taxes,” he said, adding that the principle of paying for road use is not new. While he did not oppose the toll rates of N500 for saloon cars and N1,000 for buses, he insisted that affordability must be a key consideration in the policy’s implementation.

In conclusion, Yusuf supports tolling as a sustainable funding mechanism for road maintenance but urged the government to ensure it does not overburden citizens or create traffic challenges.

The Secretary of the Road Transport Employers Association of Nigeria, Ogun State Chapter, Tiwalade Akingbade, supports the Federal Government’s plan, provided the charges remain minimal and not excessively burdensome for motorists.

Akingbade stated that transporters would be willing to back the initiative as long as the funds generated are transparently utilised for road maintenance, which would ultimately benefit both transporters and the general public. He emphasised that poor road conditions have significantly increased the cost of vehicle repairs and maintenance, placing a heavy financial strain on transport operators.

“We welcome the decision of the Federal Government to toll our highways, provided the charges will be very minimal and not burdensome,” Akingbade said. “The amount of money we spend on vehicle maintenance due to bad roads is enormous. But with initiatives like this, we want to believe that the funds realised from tolling will be properly utilised to maintain these roads.”

He further noted that improved road infrastructure would not only extend the lifespan of vehicles but also enhance the efficiency of transportation services, reducing travel time and lowering overall operational costs for transporters. However, he urged the government to ensure transparency and accountability in the management of toll revenues to avoid misappropriation.

Akingbade called on authorities to engage key stakeholders, including transport unions, in the implementation process to ensure that the tolling system is fair and effective and does not disproportionately impact low-income earners who rely on road transport for their livelihood.

Similarly, chapters of the Nigeria Labour Congress and the Trade Union Congress have expressed concerns that the tolling policy could worsen the living conditions of Nigerians. They caution that this move may lead to increased transportation costs, which could have a ripple effect on the prices of goods and services, thereby intensifying the economic strain on the populace.

These concerns are particularly pertinent given Nigeria’s current economic climate, characterised by high inflation rates and a populace grappling with the rising cost of living. The introduction of tolls could potentially exacerbate these challenges, leading to increased transportation costs that may be passed on to consumers through higher prices for goods and services.

Transportation expert, Mr Adebayo Akinola, provided a nuanced perspective. While he acknowledged that tolling has the potential to enhance road quality through sustained maintenance, he stressed the need for policies that minimise the financial strain on daily commuters.

“Tolling can be an effective means of generating funds for road maintenance, but it must be implemented in a way that does not disproportionately burden ordinary Nigerians who rely on road transport for their livelihoods,” Akinola noted.

He emphasised that without proper safeguards, tolling could lead to increased transportation costs, affecting businesses, commuters, and the overall economy. To mitigate this impact, he proposed targeted measures such as toll discounts for frequent users, particularly commercial transport operators and daily commuters.

“Offering toll discounts for frequent users and ensuring transparency in how toll revenues are managed will be key to building public trust and acceptance of the policy,” Akinola stated. He also called for clear accountability mechanisms to prevent mismanagement of funds, ensuring that the revenue collected is genuinely used for road repairs and upgrades.

Akinola further urged the government to explore complementary strategies, such as improving alternative transport systems like railways and waterways, to ease the pressure on road transport.

He maintained that a well-thought-out approach to tolling could balance infrastructure development with affordability, ensuring that Nigerians are not unduly burdened.

Also, an economist, Dr Olufemi Olarewaju, acknowledged the potential benefits of tolling for infrastructure funding but stressed the importance of a balanced approach.

“Tolling can generate essential funds for road maintenance, but it is vital to consider the broader economic realities and ensure that such policies do not place an undue financial strain on ordinary Nigerians,” he noted.

Conversely, Minister of Works, Engr David Umahi, staunchly defended the policy, emphasising its significance in advancing infrastructure development.

“The launch of toll operations marks a milestone in Nigeria’s road infrastructure progress,” he asserted. “The revenue generated will play a crucial role in maintaining and expanding our federal highways.”

Meanwhile, a transportation expert, Dr Chidi Amadi, emphasised the need for a cautious approach.

“While tolling can provide much-needed funds for road maintenance, its implementation must be sensitive to the economic realities of Nigerians. A well-structured system that includes exemptions or discounts for low-income earners and transparent revenue management will be essential to prevent further economic strain,” Amadi said.