Lack of Funds Delaying Fourth Mainland Bridge and Lekki Airport Projects, Says Lagos Governor

 

The Lagos State Government has attributed the delay in commencing the long-anticipated Fourth Mainland Bridge and Lekki Airport projects to a shortage of funds. Governor Babajide Sanwo-Olu made this revelation during a live broadcast on Channels TV

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Governor Sanwo-Olu explained that while all necessary preparations for the projects have been completed, including design models and feasibility studies, securing suitable investments has proven challenging.

Addressing the cause of the delay, Sanwo-Olu said, “It is money. We have made those transactions attractive, and we’ve done everything regarding the Fourth Mainland Bridge. The alignment, geographical studies, and visibility studies have all been finalized. The only thing left is funding. And we must act responsibly.”

He further explained that while the state has engaged with potential concessionaires, their financial demands have been unreasonable. “We’ve had concessionaires who we sat with, but unfortunately, the kind of requests they are asking for, we cannot grant,” he added.

This update comes a year after the administration announced a partnership with the African Export-Import Bank and Access Bank, securing a $1.352 billion investment in Lagos infrastructure at the Africaribbean Trade and Investment Forum in Georgetown, Guyana.

However, Gboyega Akosile, Special Adviser for Media and Publicity to the Governor, clarified that the investment is actually a loan with stringent conditions, which could significantly increase the state's debt. Given the volatility in the foreign exchange market, Akosile emphasized that the government is reconsidering the loan.

“The loan comes with specific conditions we must fulfill. But when we factor in the fluctuating exchange rate, it becomes challenging to justify. The loan was initially based on an exchange rate of N800/$1, but with the dollar now around N1,700, securing the loan could put Lagos in a precarious financial situation,” Akosile explained.

He added that the government is reviewing the loan's terms to avoid burdening the state with excessive debt. “We are still searching for an investment plan that aligns with our conditions. We don’t want to start a project that could create future problems for Lagos State,” he said.

Akosile also noted that the $1.3 billion investment is linked to other projects beyond the Fourth Mainland Bridge, and discussions are ongoing to finalize the terms and conditions before proceeding.