Infrastructure Bank gets presidential nod to finance Lagos-Ibadan Expressway

The Federal Government yesterday authorized the Infrastructure Bank Plc, a specialised development finance institution, to raise N167 billion for the reconstruction of the 127-kilometre Lagos-Ibadan dual carriage way.

The Managing Director of the bank, Mr. Adekunle Oyinloye, said in a statement in Abuja that the bank would leverage on its financial expertise and culture of excellence in its partnership with Federal Government on the reconstruction of the expressway.

Oyinloye said that his bank was glad to have been able to provide the financial engineering to ensure the bankability of the project and would raise the requisite capital to execute the project

He said the bank was the transaction adviser and the leader of a consortium of local and international financiers as well as investors to provide the required funding for the project.

Oyinloye  said: 'The project is now to be completed in a record time of 24 to 30 months as opposed to the 48 months initially proposed by the contractors.'

Oyinloye said the bank was providing cutting-edge advisory services for the project, while it would continue to work with Federal Government towards 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.

At the flag-off ceremony of the project in July, President Goodluck Jonathan had said: '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 socio-economic importance, not only to Nigeria, but also to the people of Africa.'

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 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.