A major setback has befallen the Lagos Fourth Mainland Bridge Project.
The state government has just announced that it has terminated the contract due to the slow pace of work in the build up to the construction process of the project.
To many investors, this is a major red flag given the fact that the project has not started before the contract was terminated by the state government. Analysts argue that the move is a sign of instability as viewed by many think tanks that Nigeria is one of the most unstable economies in the world.
It would be recalled that the Lagos state had in 2016 signed the Memorandum of Understanding, MoU for an NGN844 billion contract to construct the bridge.
African Finance Corporation and Access Bank, a tier 2 bank in Nigeria, are the major financiers of the project. The uncertainty over the project would continue to increase as the state government was vague in its closing statement on the cancellation announcement.