Yemisi Izuora
The International Finance Corporation (IFC), has expressed a partnership interest with Lagos State government by financing a $50 million local-currency loan to upgrade its two bus transport corridors running between Abule Egba-Command and Ile Iwe-Ile Epo neighbourhoods.
These two neighbourhoods, which are in total eight kilometres in length, are the most densely populated and congested parts of the city. The projects are expected to benefit more than 150,000 passengers per day who will also experience reduced commute times. The bus corridor development is part of Lagos State’s Bus Reform Initiative, which aims to provide world-class, affordable public transport for residents.
Dr Rabiu Olowo, Commissioner for Finance, Lagos State, said: “We are pleased to partner with IFC on the two bus corridors to help provide safe, efficient, cost-effective transportation in Lagos, reduce travel times and noise along the corridors. We remain focused on providing opportunities for increased economic activities within the State that encourage businesses to grow and improve livelihoods.”
Lagos is Nigeria’s primary commercial hub and has a population of more than 20 million people. There are 222 vehicles for every kilometre of road in Lagos, compared to a national average of 11 vehicles, according to the Lagos Metropolitan Area Transport Authority (LAMATA), leading to significant travel times and emissions.
Kalim M. Shah, IFC’s Senior Country Manager for Nigeria, 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 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 transport project reflects the IFC strategy to support sustainable urban growth.
The 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. In parallel with the financing, targeted IFC advisory services are also planned to support Lagos State in the public transportation sector and other infrastructure services.
IFC’s future work in Nigeria focuses on improving access to essential infrastructure services such as transportation, as well as nurturing the country’s expanding digital economy, supporting entrepreneurship, and boosting access to finance for small businesses and women entrepreneurs.