Why we intervened in Lekki-Epe Expressway management – LASG

The Lagos State Government on Wednesday said it decided to intervene in the management of the Lekki-Epe Expressway in order to have total control of the toll rates being charged users of the road.

Although it said the concessionaire, Lekki Construction Company, would still be involved in the management of the road, the government would solely fund the completion of the project and determine the toll rates, having bought back the rights of the company.

The explanation was contained in a statement jointly signed by the Commissioners for Finance and Justice, Mr. Ayo Gbeleyi and Ade Ipaiye, respectively.

The government said in the statement, “The LCC, which is the special purpose vehicle representing the investors, formally brought it to the attention of the state government that given the rapid rise in interest rates on local loans and other cost parameters, it was compelled to raise tolls currently being charged at the Toll Plaza One from N120 to N144 per car.

“The concessionaire also brought it to the attention of the state government that as provided for under the agreement, tolling would have to commence at Toll Plaza Two. In addition, the concessionaire indicated that unless it realised more income from increased rates at Toll Plaza One and commenced tolling at the same rate per car at Toll Plaza Two, it would not be able to meet its commitments to investors in the project and continue to fund the completion of the remaining sections of the road.”

The concessionaire, it stated, was also ready to commence the construction of the third plaza for toll collection to ensure the continued viability of the project.

The government explained, “The significance of the buy-back, for which the state government deserves commendation, is that it allows the government to take full control over the determination of the toll rates in order to continue to make it affordable for road users. The LCC shall, therefore, continue to operate as a fully commercial entity for the benefit of taxpayers and the larger society.

“More importantly, it will also preserve the ability of the government to complete and deliver the infrastructure by direct budget funding, which was also one of the reasons for the presentation of the year 2013 budget re-ordering to the state House of Assembly.”

Governor Babatunde Fashola had, through a letter dated August 19, 2013, which he sent to the Assembly, requested a supplementary budget of N7.5bn to fund the acquisition of the existing concession, right and toll revenue benefit held by the LCC.

The Assembly approved the supplementary budget on Tuesday.

The government said on Wednesday that the buy-back arrangement was not a unilateral action, adding that the decision was taken after due consultation with the stakeholders, and that the option was provided for in the concession agreement.

Meanwhile, a civil rights activist and lawyer, Mr. Ebun Olu-Adegboruwa, said in a statement on Wednesday that he would not withdraw the suit he filed against the state government and the LCC on the project unless the details of the concession agreement were made public and the road made toll-free.

“The major issue is that the road concession was a fraud on the people and residents of Lagos. Till now, the road construction of over 49 kilometres to Epe has not extended up to Ajah, leaving the people to contend with unending traffic gridlock every day, paralysing businesses and movements,” he said.

Olu-Adegboruwa urged the Lagos State House of Assembly to set up a judicial commission of enquiry to probe the project and called for its re-awarding.

One of our correspondents, who visited the Admiralty Toll Plaza I on Wednesday, observed that representatives of the concessionaire were still collecting tolls on the road.

Source:http://www.punchng.com/news/why-we-intervened-in-lekki-epe-expressway-management-lasg/

Monumental fraud, The Agreement was to build the road and toll, but these fraudulent Governor and his predecessor did not finish contructing the road before they start tolling it. How can you use our money to construct the road and charge us for it, we own no stakes in the company but its our money that's being used for the road construction, and now Fashola has received another 7.5 billion in addition to the approximately 35 million generated EVERYDAY on this road.

At the end of the day, the state government has been ripped off 7.5 billion in addition to 35 million daily from commuters by Fashola and Tinubu, to enable them invest in the Eko Atlantic City and Epe Free Trade Zone.

This is monumental fraud.

Naija... SMH

Billyonaire: Monumental fraud, The Agreement was to build the road and toll, but these fraudulent Governor and his predecessor did not finish contructing the road before they start tolling it. How can you use our money to construct the road and charge us for it, we own no stakes in the company but its our money that's being used for the road construction, and now Fashola has received another 7.5 billion in addition to the approximately 35 million generated EVERYDAY on this road.

At the end of the day, the state government has been ripped off 7.5 billion in addition to 35 million daily from commuters by Fashola and Tinubu, to enable them invest in the Eko Atlantic City and Epe Free Trade Zone.

This is monumental fraud.

the agreement is, if you care for the truth was meant to be implemented in phases. I really do not think you understand the basic issues here, but all I see you do is the usual propaganda.it was not the govt money that was used to expand the phase toll was being collected for, it was the concession company's money.
the buy back is to enable govt have better flexibility in terms of policy and involves the remaining phases of the concession agreement.
what is obvious here is that the concession company that has borrowed money to carry out this agreement is having difficulty recouping it's investment and funding the. remaining phase of the contract
being the first major concession agreement to even have being able to experience any modicum of sucess in this country, I believe important lessons have being learnt.
the assertion you made that the state government has being ripped off of 7.5 billion is a complete deliberate lie except you are saying the concession company has not done any work with its own money.

I agree that like every concession agreement between govt and the private sector, this one has its issues as well, but twisting facts and making wide allegations about fraud is complete nonsense .

Unprecedented fraud!

Unprecedented fraud!!

Unprecedented fraud!!!

This evil and unprecedented scam can only happen in a state governed by "progressive" thieves. This is just unbelievable. Are there no longer people of good conscience in Lagos? Who will save Lagos? A beg, I no fit shout. I'm out.

"to take full control" Lol.

Nothing we no go hear for Nigeria.


The government has made a very humiliating U-turn. They should apologize to Lagosians.

We would speak come 2015.....this is the height of deceit, if it was the federal government that paid bi courtney money to buy back the concession of lagos-ibandan expressway...this theives and their hypocrite supporter would call gej all sorts of name...

software man:
the agreement is, if you care for the truth was meant to be implemented in phases. I really do not think you understand the basic issues here, but all I see you do is the usual propaganda.it was not the govt money that was used to expand the phase toll was being collected for, it was the concession company's money.
the buy back is to enable govt have better flexibility in terms of policy and involves the remaining phases of the concession agreement.
what is obvious here is that the concession company that has borrowed money to carry out this agreement is having difficulty recouping it's investment and funding the. remaining phase of the contract
being the first major concession agreement to even have being able to experience any modicum of sucess in this country, I believe important lessons have being learnt.
the assertion you made that the state government has being ripped off of 7.5 billion is a complete deliberate lie except you are saying the concession company has not done any work with its own money.

I agree that like every concession agreement between govt and the private sector, this one has its issues as well, but twisting facts and making wide allegations about fraud is complete nonsense .

You can tell yourself anything that makes you happy.

Ask yourself these questions .....
What is supposed to be the total cost of the 50km road ?
What is the value of what has been constructed so far?
How much have they realised via tolls and adverts for just 3 years?
Why are they being paid 7billion ?

Answer those questions quietly in your heart.

Never thought I'll say this-but AYam feeling @Billy and @Sincere on this one

Kamanda: Never thought I'll say this-but AYam feeling @Billy and @Sincere on this one

your feeling them because your using your brain,your not allowing sentiment be clouds ur judgement

Honestly, I don't understand why LASG will want to pay 7b for a road nt yet completed. Have they factored in the money already made frm tolls and adverts. If they want to compensate LCC for canceling the concession, I understand but not to the tune of 7billion, τ̣̣ђat's criminal. Are they saying τ̣̣ђat LCC has spent τ̣̣ђat amount already on the road, or is it a money doubling venture?

Sincere 9gerian: Unprecedented fraud!

Unprecedented fraud!!

Unprecedented fraud!!!

This evil and unprecedented scam can only happen in a state governed by "progressive" thieves. This is just unbelievable. Are there no longer people of good conscience in Lagos? Who will save Lagos? A beg, I no fit shout. I'm out.

Oh nuisance! Here you go again.
You have no right to call anybody a fraud, talk about yourself first. I know you've sold your dignity to PDP for money,there is nothing more terrible than that. What a shame!
My advice: You better make all the money you can from the GEJ government because as soon as a responsibe government(APC) takes over you will die of frustration & hunger when things start to work normally in the country

Sincere 9gerian: Unprecedented fraud!

Unprecedented fraud!!

Unprecedented fraud!!!

This evil and unprecedented scam can only happen in a state governed by "progressive" thieves. This is just unbelievable. Are there no longer people of good conscience in Lagos? Who will save Lagos? A beg, I no fit shout. I'm out.

Nuisance