The Nigeria Employers Consultative Association (NECA) yesterday cautioned the Federal Government over the planned reintroduction of toll gates on federal roads.
This is even as it warned that, for the tolling policy to see the light of day, no additional burden, in the form of any tax or levy, should be placed on businesses/individuals in order to fund the construction of the system.
Mr. Timothy Olawale, the director-general of NECA, who called for efficient policy on the part of the ministry without neglecting other means of transportation, noted that businesses/individuals have already been inundated with numerous taxes and even proposed additional taxes- the Mobile tax, increase in VAT, etc.
According to him, “All these and many more would reduce the purchasing power of consumers with dire consequences for business.
“The Private sector operators should be attracted through public-private partnerships (PPPs) in the construction, maintenance and management of the toll systems, as done successfully in other climes, like: Egypt and South Africa.
He explained that it is evident that road transportation plays a significant role in the economic development of any nation as major proportions of its economic activities are largely dependent on good motorable roads and an efficient road network/systems.
“The responsibility for providing the transport network is traditionally the obligation of government, which includes the construction and maintenance of all roads as enshrined in the 1999 Constitution,” he said.
In order to perform this functions efficiently and effectively, the NECA boss said the initiative of the current administration to re-introduce tolls on some Federal Roads and Bridges was commendable.
But he however said that not in the present shattered and dilapidated state of roads across the country.
Mr. Olawale advised that the federal government through the Ministry of Works and Housing should engage relevant Professional and Business Membership Organizations (BMOs) in putting in place policies that will guide its operations for effective infrastructure development.
He said, “We are conscious of the numerous benefits that the economy can derive from tolling. However, we are concerned of the past failures that characterised the management of the toll system across the nation, which were marred by revenue leakages and unmet maintenance of the tolled roads.”
“We will like to reiterate that not all roads are viable for proposition for tolling- especially subsidiary roads and roads with low traffic volumes.”