Closure of 3rd Mainland Bridge: Lagos to lose over N4.6trn to traffic congestion

The closure of the Third Mainland Bridge is going to lead to the loss of over N4.6 trillion. Analysts say, this is because the closure will further exacerbate the already bad traffic congestion faced by motorist in Lagos.

One of the already felt impacts is that, the rich who are scared of the traffic situation caused by the closure of the bridge have no option than to settle to whatever prices traders in Sura market in the Lagos Island tells them to pay.

Bismarck Rewane, Chief Executive Officer (CEO) of the Financial Derivatives Company (FDC) Limited said, “the metropolis loses about N4.6trillion on an annual basis due to traffic congestion. The closure of the bridge will further reduce labour productivity, increase revenue losses and widen price differential across markets”.

The study by the FDC and Channels Television also shows that market proximity, higher logistics costs and income inequality play a crucial role in commodity pricing across markets.

The study shows that some commodity prices in Sura market are on the average 20 per cent higher than Oyingbo. This is probably due to the fact that the market is closer to the elites, thus validating the notion that in the real world, markets are far from perfect.

Another study conducted in Lagos traffic situation tells the story more vividly. According to a recent report by the Lagos Business School, 1,600 of 25MT, 5,060 of 8MT and 13,500 of 3MT trucks bring foodstuff into Lagos state on a daily basis. The closure of the Bridge implies that vehicles will have to use alternative routes, thereby increasing traffic.

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