ICRC: Defends Nigeria HDMI Toll Pricing, Citing Value for Money

• The Infrastructure Concession Regulatory Commission (ICRC) has defended its toll pricing under the Highway Development and Management Initiative (HDMI).
• Toll charges are evaluated based on the improved quality and benefits of upgraded roads, according to ICRC Director-General Dr. Jobson Ewalefoh.
• Ewalefoh cited the 227-kilometre Akwanga–Makurdi road, which has four toll gates, as an example of the pay-as-you-travel system.
• Motorists' willingness to pay tolls for clear road improvements supports the "well-structured PPP" model.
• A portion of toll revenue is specifically allocated for road maintenance, with the government not bearing additional costs and major repairs funded from these dedicated tolls.

A specific portion of the revenue generated from tolls is ring-fenced and allocated exclusively for the ongoing maintenance of the highways.

The Infrastructure Concession Regulatory Commission (ICRC) recently issued a robust defense of its toll pricing framework, specifically under the Highway Development and Management Initiative (HDMI). The Commission clarified that the charges levied on motorists are meticulously assessed against the enhanced quality and tangible benefits derived from the upgraded road infrastructure. This stance, communicated in a statement made available to PUNCH Online on Thursday, underscores the regulatory body's commitment to a value-for-money approach in Nigeria road concession pricing.

Dr. Jobson Ewalefoh, the Director-General of the ICRC, highlighted the 227-kilometre Akwanga–Makurdi road corridor as a prime example of this strategy in action. This particular route features four distinct toll gates, requiring motorists to pay incrementally as they traverse its length. Ewalefoh argued that any assessment of these toll payments must consider the significant financial and non-financial burdens previously imposed by the road's dilapidated condition, including substantial lost man-hours, preventable vehicle damage, and elevated accident risks.

The ICRC's defense hinges on the principle that improved infrastructure justifies the imposition of tolls. Dr. Ewalefoh emphasized that the financial outlay for tolls should be weighed against the prior economic costs associated with poorly maintained roads. This perspective is reportedly supported by feedback from road users, with many motorists expressing a clear willingness to pay tolls when they observe tangible improvements in road quality and service delivery.

Further reinforcing this point, some drivers have voiced support for the implementation of similar tolling arrangements on other major corridors, provided these routes are upgraded to comparable standards. Dr. Ewalefoh characterized this outcome as "the beauty of a well-structured PPP," highlighting the efficacy of Public-Private Partnership models in delivering critical infrastructure. He also confirmed that negotiators involved in these projects meticulously evaluate toll pricing to ensure that charges remain equitable and fair for all users.

A critical component of the concession agreements under the Highway Development and Management Initiative is the dedicated funding mechanism for road upkeep. A specific portion of the revenue generated from tolls is ring-fenced and allocated exclusively for the ongoing maintenance of the highways. This financial structure ensures that the government is relieved of additional maintenance costs for the entire duration of the concession contract, shifting the responsibility to the concessionaire.

Under these agreements, stringent maintenance obligations are in place, including a mandate for the government to address potholes within a tight 48-hour timeframe. Furthermore, all major routine repairs are financed directly from the dedicated toll revenue, ensuring a sustainable and self-sufficient model for infrastructure preservation. This approach provides a clear framework for cost recovery and ongoing operational excellence, central to the long-term viability of Nigeria's PPP toll road justification.

This article clarifies the regulatory stance on toll pricing for Nigerian highway concessions, providing a basis for legal arguments or negotiations concerning cost recovery, maintenance obligations, and the economic justification of Public-Private Partnership (PPP) road projects. Lawyers advising on infrastructure development or transportation logistics should note the ICRC's emphasis on value for money and dedicated maintenance funding.

Source: Original reporting via PUNCH Online.