The Federal Government has directed The Infrastructure Bank Plc to raise N167 billion for the reconstruction of the 127-kilometre Lagos-Ibadan dual carriage way.
Mr Adekunle Oyinloye, the Managing Director of the bank, said this in a statement in Abuja on Tuesday.
He said that the bank would leverage on its financial expertise and culture of excellence in its partnership with the Federal government on the reconstruction of the road.
Oyinloye said that his bank was thrilled to have been able to provide the financial engineering to ensure the viability of the project and would raise the requisite capital to execute it
Oyinloye said that the bank was the transaction adviser and the leader of a consortium of local and international financiers as well investors to provide the required funding for the project.
“The project is now to be completed in a record time of 24 to 30 months as against the 48 months initially proposed by the contractors,” he said.
Oyinloye said that the bank was providing cutting-edge advisory services for the project, adding that it would continue to work with the Federal Government to ensure timely completion of the project.
He called on other Nigerian banks to channel their pool of funds into the development of infrastructure, adding that Nigerian banks must help to unlock the nation’s potential by financing the development of its infrastructure.
“For Nigeria to rapidly reduce its infrastructure deficit and improve on its social and economic development indices, it behoves the nation’s financial sector to unlock its potential,’’ he said.
At the flag-off ceremony of the project in July, President Goodluck Jonathan had said that “the road is an important economic artery that connects our nation’s economic nerve centre to many of the states of our federation.
“This strategic national infrastructure is, therefore, of great socil and economic importance, not only to Nigeria, but also to the people of Africa”.
The Minister of Works, Mr Mike Onolememen, described the project as further evidence of the unwavering commitment of President Jonathan to transform the nation’s transport infrastructure.
He said that the Federal Government was delighted to have worked closely with the Infrastructure Bank in structuring innovative financing solution for the rehabilitation and expansion of the expressway.
The Lagos-Ibadan expressway was built over 30 years ago and is one of the most important roads in the country, linking the nation’s commercial hub of Lagos to the adjoining states and the rest of the country.