NIGERIA – IFC has partnered with the Lagos State Government to support the development of two bus corridors in the city.
The projects are expected to benefit more than 150,000 passengers per day including by reducing commute times for residents.
The partnership is expected to also increase access to public transportation and reduce vehicle emissions in Lagos.
Through the partnership, IFC is providing a US$50 million loan to help Lagos develop, finance, upgrade, and operate two bus corridors totaling eight kilometers in the Abule Egba-Command and Ile Iwe-Ile Epo neighborhoods.
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 minimize currency fluctuation risks, was made possible through the International Development Association Private Sector Window (IDA PSW) Local Currency Facility.
“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,” said Dr. Rabiu Olowo, Commissioner for Finance, Lagos State.
“We remain focused on providing opportunities for increased economic activities within the State that encourage businesses to grow and improve livelihoods.”
The partnership come at a time when the population is rapidly increasing in the State as more people are migrating into the city, demanding access to affordable and environmentally sustainable transportation.
Lagos is Nigeria’s primary commercial hub and has a population of more than 20 million people.
The city witnesses 222 vehicles for every kilometer 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.
The project reflects IFC’s 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 work in Nigeria focuses on improving access to essential infrastructure services such as transportation, as well as nurturing the country’s expanding digital economy.
In addition, it supports entrepreneurship and boosts access to finance for smaller businesses and women entrepreneurs.
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