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FG Approves New Tolling Policy, Regulations

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FG Approves New Tolling Policy, Regulations

by Present Nigeria
August 11, 2021
in News
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FG Approves New Tolling Policy, Regulations
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The Federal Government on Wednesday approved the a new open tolling policy thereby bringing back tollgates on federal Roads across the country.

The decision was reached at today’s Federal Executive Council (FEC) Meeting presided over by Vice President Yemi Osinbajo.

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The Minister of Works and Housing, Babatunde Fashola briefing newsmen after the meeting said the framework for the broad policy was adopted at the meeting.

He said the policy and accompanying regulations were developed after extensive consultations with various stakeholders within and outside the government, including Transport Unions like NURTW, NARTO, RTEAN.

The policy, he explained, will guide the new tolling system so that local people, states and local governments, as well as all those who manage roads and interested investors, will understand the nation’s tolling policy.

Mr Fashola further hinted that after wide consultations with various sectors including the National Assembly, only diplomats and military and paramilitary officials would be exempted from the electronic toll collection on the dual carriageways pronounced eligible for tolling by the Federal Government.

According to him, the council equally proposed that bicycles, pedal cycles, tricycles, motorcycles, and other two or three-wheeled means of transport used mainly by disadvantaged members of the community, will be entitled to a full 100% exemption.

Highlights of the new Federal Tolling Policy, as shared by the Minister, are as follows:

1. It will be an Open Tolling system (just like the one that used to be in existence in the country), instead of a Closed Tolling system. (A Closed Tolling system means that you pay per distance traveled (‘distance-dependent’), while Open Tolling means you pay a fixed/flat rate that is not dependent on distance traveled)

2. Only dual carriageways owned by the Federal Government will be eligible for tolling by the Federal Government. (Of the 35,000km of Federal Roads in existence in the country, only 5,050km are dual carriageway). Federal carriageways that are single, i.e. undivided highways will not be tolled. The only exceptions here will be some bridges, which are listed in the Policy.

3. Toll Revenues will be used to maintain the roads and also to repay investors who have invested in building or completing a road under the Highway Development Management Initiative (HDMI).

4. Electronic Toll Collection and Management systems will be prioritized over Cash systems.

5. The following will be exempted from Tolling: Bicycles, Tricycles, Motorcycles, Diplomatic vehicles, Military and Paramilitary vehicles.

6. The Tolling Policy is a broad National framework that will serve as a guide for States and Local Governments who seek to implement their own Tolling Policies. (As noted earlier, only about 16% of the total road network in Nigeria belongs to the Federal Government. States own/control roughly the same amount as the FG, while the rest – amounting to two-thirds are last-mile roads belonging to and under the responsibility of Local Governments).

7. People who live around Toll Plaza Areas will benefit from what is called ‘Frequent User’ discounts, in line with global best practice.

8. Recommended Tolling Fees in the Approved Policy and Regulations are as follows:
Cars: N200
SUVs: N300
Private Buses: N300
Commercial Buses: N150
Luxury Buses and Trucks: N500

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