‘Tolling of roads will negatively affect rural areas’

Founder of Wardiere Oakmount and a real estate sales coach, Kunle Ilori, has said the reintroduction of the toll on selected Federal Government roads may affect the purchasing decision of intending property buyers in suburban and peri-urban areas.

Ilori said this in reaction to the Federal Government’s decision to toll Abuja-Kaduna-Kano and other major highways across the country.

He said, “Major highways connect cities and enable urban expansion. When tolls make these roads more expensive for daily commuters, it can reduce demand for properties in suburban and peri-urban areas, leading to stagnation or decline in real estate development in those regions.”

The Minister of Works, Senator David Umahi, has hinted that the Abuja-Kaduna-Kano and other major highways across the country will be tolled when 100 per cent completed to ensure adequate maintenance.

The Nigerian government’s reintroduction of tolling on major highways has sparked a debate on its economic consequences.

While the government argues that tolls will generate revenue for road maintenance and loan repayments, citizens have questioned the potential costs to the average Nigerian and the broader economy.

On his part, the real estate expert noted that “the highways play a significant role in urban expansion by connecting cities. However, the cost burden of tolls could dampen demand for properties in suburban and peri-urban areas, stalling real estate development.

Citing an example of the possible implication of the impending toll, Ilori said, “In Lagos, the introduction of the Lekki-Epe toll gate led many middle-income earners to reconsider living in areas such as Ajah, Sangotedo, and Ibeju-Lekki. Despite early development, it took years, including the arrival of the Dangote Refinery, for property demand in these areas to recover.”

He further added that the government’s latest decision mirrors events in South Africa, where the introduction of e-tolls on Gauteng’s highways in 2013 led to public backlash.

“The increase in transportation costs and, subsequently, the price of goods, prompted the government to scrap part of the system.”

He also said considering the track records of the government in road maintenance, Nigerians are also in doubt that the money realised will be spent on roads as promised.

“Given the Nigerian government’s track record on road maintenance, many Nigerians have expressed scepticism about the proper management of toll revenue. Despite billions of naira allocated annually for road upkeep, many roads remain in poor condition. The key question remains: will toll revenues be reinvested wisely, or will they be lost to mismanagement?

“The Lagos-Ibadan Expressway serves as a cautionary example. Despite years of tolling before its removal in 2003, the road was considered one of the most dangerous and poorly maintained highways in Nigeria until recent reconstruction efforts.”

Before implementing the toll, Ilori appealed to the government to take several steps to minimise its adverse effects, such as, “Upgrade Alternative Routes: There should be at least one well-maintained, toll-free alternative road to prevent traffic congestion.

“Invest in Public Transport: Efficient rail and public transport systems should be developed to reduce reliance on toll roads.

“Ensure Transparent Fund Management: Detailed financial reports on toll revenue spending should be published to ensure accountability and prevent mismanagement.”