Lagos Facing Difficulties Securing Sovereign Guarantee For 4th Mainland Bridge—Sanwo-Olu
1 year ago 3 min read
Share:
Lagos State Governor, Babajide Sanwo-Olu, has revealed that Lagos State is having difficulties securing sovereign guarantees for the proposed 4th Mainland Bridge.
The governor said potential financiers of the project are requesting a sovereign guarantee, which would involve a commitment from the Federal Government to secure funding for the project.
Sanwo-Olu disclosed this during an interview on TVC’s Breakfast program on Monday, monitored by THE WHISTLER.
The governor emphasized that Lagos is being cautious about its debt profile, especially with current currency fluctuations.
According to him, significant improvements are ongoing around Abraham Adesanya in preparation for the project’s eventual commencement.
“We’ve looked at the financial sustainability of Lagos. Any development you want to do at that scale and you’re subnational, you need to be able to look at your sustainability ratios.
“Everybody that has raised funding to help us develop that project—that’s a $2 billion project—they’re asking for a sovereign guarantee.
“They’re asking for you to get a commitment from the central government. So, we’ve not been able to push that,” Sanwo-Olu explained.
He acknowledged that meeting such a condition is challenging for Lagos State but assured that the government is exploring innovative approaches to execute the project.
“It’s a difficult line for us to go to. What we’re doing is that we’re being creative. Can we dimension that project in a consumable manner for us? What is the heavy lifting that we need to do?” he added.
Sanwo-Olu stressed the importance of finding a sustainable funding model that aligns with the state’s long-term financial stability, especially given the volatility of currency exchange rates.
“Part of the things we’re looking at is how far down can we get a sustainable funding model that can still help Lagos to be able to plan. With the currency movement, we need to be careful with our debt profile and carry on numbers that can keep us sustainable,” he said.
The governor also highlighted ongoing infrastructure projects such as the Omu Creek Road, the Regional Road, and plans for the proposed Lagoon Highway.
Proposed in 2006, the Fourth Mainland Bridge project is estimated to cost $2.5bn. Spanning approximately 37 kilometres, it will connect Abraham Adesanya in Ajah to the Lagos-Ibadan Expressway via Owutu/Isawo in Ikorodu, along the Lagoon shoreline.
The Public-Private Partnership (PPP) initiative will feature three toll plazas, nine interchanges, and a 4.5-kilometer Lagoon Bridge. Upon completion, it is expected to be the longest bridge in Africa, easing traffic congestion on the Carter, Eko, and Third Mainland Bridges while opening new areas of Lagos for development.
On food security, Sanwo-Olu announced plans to commission the first phase of the state’s food logistics hub in Ketu Ejinrin by June 2025. The hub aims to ensure food sufficiency for Lagos residents by integrating supply chains from food-producing states.
Additionally, he revealed plans to commission two mid-level food hubs, similar to the existing one in Mushin.
