Lagos State will not build the Fourth Mainland Bridge using public money alone, Deputy Governor Obafemi Hamzat said this week, confirming that the state is pursuing a public-private partnership model to finance the major infrastructure project. Speaking on Lagos Television on Tuesday, Hamzat, who is also the All Progressives Congress governorship candidate, said the state cannot fund both the bridge and major rail projects from its own budget. He disclosed that discussions with prospective investors were already underway and that the project had been designed with its costs assessed.
Hamzat said the government had received interest from investors in Portugal, China and other locations. The state has engaged private-sector professionals to support negotiations and other aspects of project development. The decision to avoid public financing stems from concerns about the strain additional borrowing would place on state finances. Hamzat explained that the government preferred partnerships to excessive debt, saying a public-private partnership was the most sustainable approach. He described the bridge as a fantastic project that must be built, but acknowledged it was a monster project requiring external support.
A critical factor in attracting private investment is toll collection. Hamzat said investors needed confidence that they could recover their investments through revenue generated by the infrastructure, and that toll payment was essential to demonstrating project viability. He noted that some prospective investors had raised concerns about road users' reluctance to pay tolls, particularly in areas where toll collection had previously been discontinued. The government is presenting traffic data and other information to investors to show demand for improved infrastructure and convince them the project would be worthwhile.
The Fourth Mainland Bridge is intended to improve connectivity across Lagos and provide an alternative route to relieve pressure on existing roads. For borrowers and businesses in Lagos, reliance on private funding means toll charges are likely to be a permanent feature of using the bridge, while avoiding large government debt could help keep overall borrowing costs in the economy lower.