The Lagos State Government has disclosed that lack of funds is the reason behind the delay in the execution of the anticipated fourth mainland bridge and the Lekki Airport projects.
This was revealed by the state governor, Babajide Sanwo-Olu in a Channels TV live broadcast which The Bureau Newspapers monitored on Wednesday night, explaining that his government has made everything ready for the projects to kick start but has yet to secure profitable investment for them.
When asked about the cause of the delay, the governor replied: “It is money. What have we done? We have made those transactions to be attractive. We have designed. We have designed those models to make them attractive to investors. And we have done everything regarding the fourth mainland bridge. We have done extensive work.
“The alignment, everything has been concluded, the geographical studies, the visibilities studies, everything is on the table. It is just only the money. And for me, we have to live responsibly.”
He continued: “We have had concessionaires who we will have sat with but unfortunately, the kind of request they are asking from us, we cannot grant it.”
This information from the governor comes a year after his administration announced it had secured a partnership with the African Export-Import Bank and Access Bank for an investment of $1.352 billion in Lagos infrastructure.
It was announced that the governor signed the partnership deal with the two banks in November 2023 at the second Africaribbean Trade and Investment Forum 2023 in Georgetown, Guyana.
“It was a significant moment in Guyana at the Africaribbean Trade and Investment Forum 2023 as we’ve secured a partnership with the African Export-Import Bank and Access Bank for a massive investment of $1.352bn in Lagos.
“This investment will power our long-term infrastructure projects, demonstrating confidence from international and local partners in our growing economy,” Sanwo-Olu said via his verified X (formerly Twitter) account.
Gboyega Akosile, Special Adviser for Media and Publicity to the Governor, clarified that the investment in question is actually a loan with stringent conditions. If pursued, it could lead to substantial debt for the state, particularly considering the current foreign exchange challenges.
According to Akosile, the volatile foreign exchange market is a key factor prompting the government to reconsider taking on this loan.
He said: “The investment is a loan and there are some particular conditions we have to fulfil to secure that investment. And again, what was the exchange rate when we wanted to secure that loan, and what is the exchange rate at the moment? You have to factor that in.
“The government has to look at the future of Lagos State – if we secure the loan at the rate of N800/$1 and all of a sudden, the dollar is now N1,700. How can you justify that loan? And the FX is not our fault anyway. This is why the government has to renegotiate to avoid a serious debt for Lagos State in the future.
“So those are the things the governor said, that they were asking for some conditions which the state is finding difficult to give. You know it was a live interview, he would not want to go into details. There are so many details delaying the projects which the governor did not reveal. Otherwise, everything is ready for that project.
“We have done all the engineering, and everything is ready from our side. But we are still looking for an investment plan that can go along with our own conditions. And again, we don’t want to start something that at the end of the day, it will become a problem in the future for the state and the future leader.”
Akosile added that the government would gladly begin the project the moment it receives investments that will not put the future of the state at risk.
He added: “And note that the investment in question ($1.3bn) is also attached to other projects, not only the fourth mainland bridge. Talks are ongoing on how to execute the projects and we are currently reviewing the terms and conditions of the loan.”