₦airaland Forum

alutacontinua: @OP, ask around, i'm not the type that minces words irrespective of the personality or gender it affects.
But I gotta admit, all what you wrote up there is bull-crap. Sounds more like teenage things to me, so, i'll like to ask, how old are you

Good point. Reading it was like reading a university girls story. I think the OP is a teenager.

You would have used your the find my Iphone feature on icloud to locate the fake soldier. Sorry for your loss.

enm: @pecker lord, nothing bad in back back the project but if the project must be buy back, all what I expect LASG to do is to compensate them for the money spent on the completed portion that is if LASG want to do father christmas because to me lcc has defaulted in carrying her own part of the bargain which to " build " " operate " to recoup back their money with profit and "transfer" to lagos state after 30yrs, but did they do that before tolling the road?

How long did it take them to construct the 10 kilometers which they are tolling?

You see my brother lagos state has no business buying back anything but revoking the contract.

God bless you. A sensible government revokes the contract and hands it over to a more serious contractor. However, you see a different scenario here. Someone was busy imaging the potential income generation of LASG in 5 years. Fashola has publicly told Lagosians that all projects will be carried out if there were enough funds to do so. Now in the scale of preference, some projects are considered more important than others and funds are allocated to undertake them. I am tired of analyzing this but to round up. THIS IS FRAUD PERIOD.

Fashola is working.......

shortgun: I think I've tolerated you enough, please post a valid statement.
As much as am willing to descend to your level for the sake of this discussion,i will no longer tolerate any senseless ranting from you.

I do not mean to be insultive. I just read your comment and I almost poured my drink on myself. Pele u hear

jamesbridget13: seriously?

No jokes. She is there right now. If you want to see her just go there now. She seems ok to me. Imagine the shock on my face when I read this news. I have to start scrutinizing every news on nairaland.

I just left beverly at a get together party for a friend in V.I (former auto lounge, beside rhapsody club) I did not notice any injury but I noticed she came alone. She is still at the party because I just left. This news is strange to me oh.

@shortgun u r a madman u just crack me up. I'm really laughing. We'v got a madman

agbameta: So they are buying an invisible infrastructure with the proposed bond offering? So Lagosians are currently driving on invisible road and they've been paying tolls to invisible entities and the Lekki toll road doesn't exist?


These half backed and thoughless posts are getting tired...

The bond is to buy the concession rights and not to complete the road. The govt will still source funds for the road. We are yet to know how they would source the funds. Previously, Lekki-Epe expressway was not included in the budget but now it will.

I think you are impatient to read. Go back and read again.

Please I will beg everyone to avoid insults or tribal e-wars and analyze this issue properly. Let's not lose focus

@delafruita please let's not beat about the bush. We know how this bond would be repaid.

All the bonds Lagos state has issued are coupon bonds (valid fact). Please note that these bonds are not only purchased by Nigerians.

I have clearly stated what funds would pay the interest and even the principal of these bonds. That has been the practice of LASG and I do not see any deviation from the norm. The annoying part is that no infrastructure will be carried out with the bond.

Let's see how the market will turn out with the bond issuance. The bad or rather the good thing about bonds is that it is a safe investing option and always over-subscribed. I am angry, very angry with Fashola.

They were aware of this right from giving LCC the contract, right from the conceptualization of the contract. This is one hell of a public scam and each time I pass that toll gate I would keep cursing till it harms the concerned people

I have noticed how people are avoiding this thread. However, if it has to do with copy and paste pictures of fashola's intended achievements, we would see praise worshipers singing and chanting. Now, they seem to distant themselves from any negative about fashola.

@Delafruita you are funny. Are you telling me that the LASG will issue a zero coupon bond. A 30 year bond, means the principal will be paid to you after 30 years. Interest are being paid either annually or semi-annually. Except a zero coupon bond and the LASG doesnt not have that credibility to issue a zero coupon bond. Even a zero coupon bond is issued at a discount and paid in full. The difference is still like interest which you pay for but only at maturity. Like I said LASG do not have the credibility to issue a zero coupon bond.

I now know you ain't a financial analyst so I will not engage you further. Even the bonds you are showing me on central bank website have interest rate but you are not even seeing it sef.

Delafruita: First,the management of LCC cannot invoke the buy-back option.only the LASG can do that.so irrespective of whatever problems LCC is facing in its financial projections,the only reason we're having this discussion is because LaSG wanted to take back the road and not because LCC couldn't source for funds

Secondly,I can only adequately pass comment on the finance option if I have full details of the bond been issued by the LASG.till then,anything you and I say will just be conjectures which can never replace fact

Finally,the scenario highlighted in the last paragraph of your post might be plausible.but this is government and not a ponzi scheme

There are little financial details that you will need for a Government Bond. The LASG wants to issue a bond to buy back the concessionary rights. It MUST pay back the bond (interest plus principal) to the investing public. How will it pay back the bond? Is it by issuing another bond (I have asked you this before)? It will pay with IGR (for me this is the most viable source of government finance). It cannot pay back the bond with monthly federal allocation (because this is a fixed sum of money which should have been budgeted for). Now what is IGR? I hope you are a financial analyst oh mek e no be sey I dey yarn with person wey no sabi? IGR also includes taxes and levies, Land use charge, Land allocation fees, other charges e.t.c

This is plain financial logical sense. I know how they pay for the bonds that is why I am telling you that taxpayers' money will be use to repay the bond.

I always knew something was wrong with the lekki-epe project because why would a company use funds from tolling to construct a road. The company should have sorted out its funding. All its needs to do is to collect tolls but use capital or loan to continue construction and for 30 years recoup its investment. Even if the increase their fees in the future, it can be acceptable because of the rate of inflation but we know that the road has been completed.

However, the road has not been completed. Investors has collected their money and abandoned the project for Government to go and look for money to finish the road.

@taharqa2 this is huge fraud. I wonder why it has not started generating controversy. I believe people are yet to understand what the fvck just hit them on their face. I am angry with the 419 scheme. I am waiting for Fashola praise chanters to come here and try to defend this scam.

Now I have got questions for Ifeanyi Ubah's supporters. Someone that did not go to school and clearly shows that he has not undertaking any leadership course, what idea is he going to bring to Anambra? What innovation is he going to implement? We have all seen how his management inefficiencies has rammed his company into huge debts. Is that the kind of governor you want for state? A man who is unable to get his company out of debt? After someone will tell me he stepped on toes. He stepped on toes and those toes turned into billions of debt in naira?

Please I think it is only a mad person that will vote for Ifeanyi Ubah or someone who does not mean well for Anambra state.

@ Delafruita if LCC is a going concern, it does not need tolls to complete the construction of the road. It can source its funds either through loan (and that it what it has done) or capital (Doesn't the company have capital). The tolling will be income to repay the loan and also make profit for constructing the road. I believe the management went to the drawing board after noticing that their financial projection was not summing up based on their budgetary analysis. Hence, they invoke the buy-back right.

Now the LASG has agreed to issue bond to buy the concessionary right. Remember interest will be paid on the bond. The bond was issued to by concessionary RIGHTS and not to for infrastructure development. Again, the government was now have to source for funds to finish up the road. Now if you are a good financial analyst, you should know that there have been a depletion, an opportunity cost (an alternative forgone). The government MUST pay for the bond it has issued to investors and because it will source fund from either Federal Monthly Allocation or Internal Revenue Generation, projects that these funds should have primarily be used for will suffer.

Now delafruita how will the LASG pay for interest and principal for the bond? By re-issuing another bond? (Excuse me) by using your tax payers' money to pay investors and if they want to be nice by using Federal monthly allocation (I doubt this one because, this monthly fund should have been budgeted for)

Fashola is truly working.....

Delafruita: first,why would you even ask such a question as the one in bold?

secondly,LASG will still not fund the project with taxpayers money.it will fund it by issuing bonds to investors

And how will it pay the interest on the Bonds that it has issued to investors. Oga be careful oh. Do you think investors will buy your Bond papers if they don't know how they will get their principal plus interest from.

[quote author=A-town]Somebody please explain to me how this remains a PPP if the LASG is buying out the private investors? Do they intend to sell the shares off LCC to a new investor. Does LASG really think people on this axis are crazy? LASG's justification for the toll was the private sector funding needed to expand the road. Now that LASG is buying out LCC with TAX PAYERS money, why on earth should people on this axis continue to pay TOLLS ON THAT ROAD. This is no longer double taxation but quadrupule. Since they have bought out LCC, there needs to be an audit. We need to know how much LCC made from TOLLING at plaza one.

The sham involved in this scheme is intense.[/quote]Now that is left for Lagos State Resident to start SCREAMING NOW!!!!!!! The publication was devised to confuse people. However, you have to read in between the lines. LASG has bought off the private investors from their company. The company now belongs to LASG. The term buy-back of concession via purchase of shares was intended to confused people. This is a project the LASG contributed N5 billion and now part off N15 billion (total government expenditure N20 billion).

From the publication N32 billion has been expended on the road, what is the percentage rate of completion at as now and what is the total cost of constructing that road. Remember, LCC has incurred debt and other liabilities which the government is still going to pay.

Please pardon my analysis of LASG owning LCC (even though we know). I got emotional about the dirty deal. It has only bought the concessionary right through shares. So LASG is also a shareholder of LCC and LCC will not longer keep the tolls as part of its income, but collect it and give it to LASG. I also wonder if LCC will be constructing roads or if it was actually set up to be a construction company. But I give kudos to the master mind of this project, the guy truly thinks and a smart financial business analyst.

akpanbaba: By the time he finishes as Anambra Governor,the total debt will be N630 billion.Pls vote for Ifeanyi Ubah.He is our man.

This (the bolded) really got me laughing. If that guy enters Awka house, Anambra will never survive. Debtors will line up in Govt house to draw their debt 50 years after Ifeanyi Ubah has left office.

When I tell people that Fashola is not truly working, they begin to copy and paste pictures of intended projects on Nairaland. This scheme is a dubious one and right to our very face. I have always insisted that LASG been transparent and publish a journal of its revenues and all projects it is handling. Then we can start a thorough appraisal system for Fashola.

Now where are the song praisers and chanters? Are they running away from this thread. I am not a PDP fan but a concerned Lagos tax paying resident who is feeling cheated right now.

Delafruita: am sure the buy-back option in the agreement will have its own terms which would have been mutually agreed by both parties before the agreement was signed.

Yes the buy-back right was there from inception. That was why the right was invoked. it is a scheme to make some people richer.

debosky: Quite confusing I think - how can LCC continue to operate 'commercially' if it can't increase the tolls to meet its needs? Does that mean LASG will meet the shortfall between the toll-generated funds and the expenditure requirements from other budgetary funds?

If so, what areas of government expenditure will suffer in order for the road to be built?

Exactly, LASG will have to go source the money either by Federal monthly allowance, Internal Revenue Generations or by issuance of Bonds (I heard LASG will issue bond soon). The Lekki-Epe expressway will now form part of the budgetary plan for the state, another reason why the bill was sent to the State House of Assembly for approval. The tolling was not stop, the State will generate income from the toll, LCC (which is now owned by the State Govt through the buy-back via shares) will collect the toll on behalf of the Govt. But the Govt will not rely on the toll income to finish the road.

I hope you understand now. I wanted to do the financial analysis of this and to explain financially why the Investors of LCC are better off. Honestly, this was a wasted project another waste of tax payers money and to make matter worse, tax payers have made someone richer.

I do not know what to say about this because I don't want to insinuate. I just feel that this deal was bound to happen right from inception. When you pay someone money he ought to earn for 30 years today, it means the inflation that is expect to eat into those future income would have been eroded and he is better off with the money today than earning it in 30 years (the present value (PV) of future income).

Honestly, the deal isn't looking good. The winners are the owners of LCC. I do not want to analyse this because it will be deficient due to the fact that adequate financial information were not made available but from the little here, I can confidently say that LCC investors are smiling to the bank in a joyous mood. While Lagos state will have to raise extra funds to finish the road. Though the tolling will not stop. Hence, the public statement that the concession was not terminated or cancelled. Another wasted project again.

Fashola is truly working.

shortgun: Get your facts right my friend, he was into partnership with NNPC.
Most big businesses in a Nigeria are greedy that's why they won't sale at 50 naira.
This is a man who brought succor to the masses,he deserves our commendation.

You expose your ignorance in public with the way you talk. Corporate Nigeria is different from Public Office Nigeria (I mean political system). It is only in Nigerian Politics that 1 + 1 = 5 where the minority rules over the majority. In Corporate Nigeria, you cannot cheat the system, that is a reason why many small business fail. If you want to cheat, the market will reject you. I do not know about the cost to import 1 litre of Kerosene (sorry I will have to go do an analysis on that). But if the market is selling @ N150 it is because they are either importing at N100 per litre. Now if a man is selling at N50 per litre and he is importing at the same market rate which is N100 per litre. Bros common maths will tell you that the man is going to run into loss and will be out of business soon. I don't know of any partnership that Ifeanyi has with NNPC.

Ifeanyi is a rogue and does not deserve my commendation. I know him for a while, not on a personal level but a business level. He swindles people's money. The man has questionable character. If such man is what you hold to high esteem, then you too have questionable character. of course you do. Go and read up your comment and your mind will tell you that you have questionable character.

alexchiny: I don't care if he feeds you and your family sir! The point is, Anambra don't need a stark illiterate with an empty skull as a Governor! We are not that hungry to sell out our votes to the highest bidder! Tell your boss that he is just wasting his precious time.

The guy will run Anambra to the grave. Because he is so illiterate, he thought getting into government will deliver his company out of the insolvency he has put it into. I overheard from a reliably source saying so. He wants to pump anambra's money into his company to rescue his company from going down. Not a bad idea business wise, that would save the company but stiffen the progress of anambra state.

shortgun: Get your facts right my friend, he was into partnership with NNPC.
Most big businesses in a Nigeria are greedy that's why they won't sale at 50 naira.
This is a man who brought succor to the masses,he deserves our commendation.

Businesses in other climes survives by loans from banks.
Haven't u noticed that the interest of the loan is exorbitant?
This is why businesses are closing daily in Nigeria.

The banks should also share in the blame, as a bank u can't just give billions of dollars to a company without monitoring how the money is been spent.

Chief shutup if you don't know what you are saying. Just keep quiet and learn. Go and study business finance and know how many businesses source their finance. Business survives on their rate of potential and actual earnings, their ability to generate earnings or income. It is their earning that gives them the ability to pay for interest on loans. Loans are leverage used to support the business, some are use to solve liquidity problem, some are used to increase the earning capacity of the business like the purchase of non-current assets, sometimes loans are use to address working capital problems. A business that is doing well and generating enough earnings do not require loans because it can generate enough retained earning for either expansion, purchase of assets or payments of dividends to shareholders. E.g UAC, Unilever, Nigerian Breweries. These food and beverage companies rarely borrow, they do so reluctantly because there is too much liquidity and effective cash management system.

In the case of Ifeanyi Ubah, he was overtrading (you can check my previous comment on this) also Cosmas Maduka stated that too. Ifeanyi Ubah was doing too much with too little capital, he was overshooting what his capital can handle and hence supporting it with borrowings from banks. His problem was that, though he was making turnovers, inventories were plying up and so were his debtors, his cost of sales was also increasing and he could not pay back interest on loans. He now devised a scheme of collecting loans from banks to settle other existing loans, business expensive and also trading expense. That is where he started shooting himself on the leg. He also started collaborating with shipping companies to divert petroleum products (where he fell out with Cosmas Maduka and Access Bank Plc). When you sum up all these, you would see management inefficiencies only perpetrated by someone who is uneducated. AMCON knew they would take over, it was just a matter of time. This is a welcome development at least better than killing the company altogether.

sammybrainy: I bet you dont use the road, so you dont know the distance between 3 bridges scatared between 7 roundabouts and over 20 major busstops

I don't use the road regularly but I go there often. And if I have a brain I would use a bus to get to the next pedestrian bridge then cross i.e. when I am far off the bridge. I see people trekking the road and there is no social harm in trekking. It is even healthy to walk long distance in order to stay fit.

Lagosians enjoy cutting corners. They enjoy beating the system in order to prove to themselves. But that's pure stupidity. When the next vehicle hits you, I hope you would prove to God how smart you are trying to cross an expressway.

azeezlateefah: This lekki Epe express way need more pedestrian bridges walahi....from lekki Phase one to Chevron you will encounter only 2 pedestrian bridge! so tell me why people won't cross an get hit! I do cross at agungi bus stop All most everyday cos the next pedestrian bridge is far like LASU to okokomaiko...haba..... people gat no choice than to cross...May Almighty Allah Helep us for this country..ameen

Please use the bridge. The distance is not an excuse. You are ranting today, how about tomorrow? You have been warned that pedestrians get knocked down on a daily basis on that road. Value your life and use the pedestrian bridge

It is a criminal offense to cross an expressway in Lagos. If you are not aware please see the Lagos State penal code or listen to traffic fm.

Pedestrians should value their lives by using the pedestrian bridges. There is no excuse for death. Make use of the bridge and save your life. Don't be a James Bond on an expressway.

I almost knocked down a guy and his girl friend and in the event of avoiding them, I almost had an accident likewise the vehicles behind me. The stupid couple were relaxed holding hands and strolling on Oshodi-Apapa expressway.

We need to promote the use of pedestrian bridges in Lagos especially. It is abused alot. I am sorry for people who get knocked down by vehicles. However, why take the risk to cross an expressway. Even if the bridge is far, please use it and if you don't it means you don't value your life.

Very Sad