LASG, IFC Partner To Expand Access On Sustainable Urban Transport

The Lagos State Government has engaged in a partnership with the International Finance Corporation (IFC) to support the development of two bus corridors in the city towards increased access to public transportation and reduction in vehicle emissions in Lagos.

 

The projects are expected to benefit more than 150,000 passengers per day as well as reduce commute times for residents.

 

Through the partnership, IFC is providing a $50 million local-currency loan to help Lagos develop, finance, upgrade and operate two bus corridors, measuring eight kilometres, in the Abule-Egba-Command and Ile Iwe-Ile Epo neighborhoods, two of the most densely populated and congested parts of the city.

 

Speaking on the development, Governor Babajide Olusola Sanwo-Olu explained that the partnership is key towards driving economic opportunities and social development as well as connecting people to social services through the vast transportation network in the State,

 

Sanwo-Olu said: “As governments continue to increase transportation capacity to meet the critical transport challenges, well-structured public-private partnerships (PPPs) under the right circumstances are one approach that will scale-up our deliverables in the T.H.E.M.E.S Development Agenda”.

 

In his own contribution, the Commissioner for Finance, Dr. Rabiu Olowo, expressed confidence that the partnership with IFC on the two bus corridors will provide safe, efficient, cost-effective transportation in Lagos, reduce travel times and noise along the corridors, saying “We remain focused on providing opportunities for increased economic activities, within the State, that encourage businesses to grow and improve livelihoods.”

 

 

Speaking in the same vein, IFC’s Senior Country Manager for Nigeria, Kalim M. Shah, said, “As urbanisation accelerates, it is important that people have access to affordable and environmentally sustainable transportation.

 

This partnership with Lagos State will help strengthen economic growth, improve access to transport, address environmental pollution, and ultimately improve the lives of Lagos residents”.

 

The bus corridor development is part of Lagos State’s Bus Reform Initiative, which aims to provide world-class, affordable public transport for residents.

 

The local currency financing, which will help Lagos minimise currency fluctuation risks, was made possible through the International Development Association Private Sector Window (IDA PSW) Local Currency Facility.

 

The project’s financing is IFC’s first subnational engagement in Nigeria and the first to use the IDA PSW Local Currency Facility to support a subnational engagement.

 

It is in consonance with IFC’s strategy to support sustainable urban growth, just as it is targeted to provide IFC advisory services to support Lagos State in the public transportation sector and other infrastructure services.

 

The partnership is based on the fact that Lagos, being Nigeria’s primary commercial hub with a population of more than 20 million people, with an average of 222 vehicles to every kilometer of road, compared to a national average of 11 vehicles, according to the Lagos Metropolitan Area Transport Authority (LAMATA), has a tendency to experience significant travel times and emissions.

 

IFC’s work in Nigeria focuses on improving access to essential infrastructure services as well as nurturing the country’s expanding digital economy, supporting entrepreneurship and boosting access to finance for smaller businesses and women entrepreneurs.