Lagos State is facing considerable hurdles in securing financing for the much-anticipated Fourth Mainland Bridge project, Governor Babajide Sanwo-Olu disclosed on Monday. The $2 billion bridge, one of the state’s most ambitious infrastructure projects, is encountering delays due to the conditions set by potential investors.
Governor Sanwo-Olu revealed that key financiers have made a sovereign guarantee from the Federal Government a condition for funding the project. This requirement has significantly complicated the funding process. During a television interview, the Governor stressed the importance of maintaining the state’s financial stability, particularly in the face of fluctuating currency exchange rates.
For a project of this scale, a subnational entity like Lagos State must rigorously assess its financial sustainability, Governor Sanwo-Olu said. Funders are asking for a sovereign guarantee, which would require backing from the Federal Government. This condition has made it challenging to move forward.
Despite this setback, the Governor reassured the public that the Lagos State Government is exploring alternative financing strategies. He shared that the state is taking a creative approach to make the project financially viable, with a focus on long-term sustainability.
We are looking at innovative ways to structure the project so it aligns with Lagos’ financial goals, he stated. Our priority is to ensure that we maintain fiscal responsibility while bringing this important infrastructure to life.
The Fourth Mainland Bridge, once completed, is expected to significantly reduce traffic congestion and stimulate economic growth in Lagos, but the state government must navigate these financial challenges to ensure its successful execution.
