Airtel

Wednesday, August 28, 2013

Lagos State Govt buys back LCC's concession rights in Lekki-Epe Expressway

The Lagos State Government has announced its intention to buy back LCCs concession rights in the Eti-Osa Lekki-Epe Expressway. Find a press statement from the State Govt below..
The Lagos State Government wishes to state clearly that it has neither terminated nor cancelled the Concession Agreement it entered into with the Lekki Concession Company Limited (LCC) to reconstruct and expand the 49.36 km Eti-Osa Lekki-Epe Expressway.
To set the records straight, Lagos State Government is engaged in buying back the rights pertaining to the concession ahead of the 30-year period stipulated in the Design, Build, Operate and Transfer (DBOT) Concession Agreement. This is to be achieved by purchasing all the shares in LCC.
The State Government came to this decision to buy back the rights in the light of several developments clearly not envisaged in the 2006 Concession Agreement (which became effective in 2008) a few of which are highlighted below.

The project, given its pioneering nature, had some underlying assumptions and market indicators under which the transaction was concluded which have since drastically changed in a manner that it can no longer be sustained in its current form. Such include the devaluation of the Naira and costs of construction.

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 is compelled to raise tolls currently being charged at Toll Plaza One from N120.00 to N144.00 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 commence 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 completion of the remaining sections of the road. 

Furthermore, the LCC stated that Toll Plaza Three, as contained in the Agreement, must be built and tolls collected for the continued viability of the project.

Under such circumstances, the Lagos State Government felt obliged to buy out the interests of the Concessionaire in advance of the hand-over date of 2038 under a mutual settlement option also expressly provided for in the Concession Agreement. This is after due consultation with all major stakeholders including the Lagos State House of Assembly based on various feedback and agitation made to the Government.

Contrary to the misleading reports by some sections of the media on Wednesday, August 27, 2013 from the State House of Assembly’s consideration and approval of the 2013 Supplementary Budget, the buy-back is not and does not amount to a “termination” or “cancellation” of the concession of Eti-Osa, Lekki-Epe Expressway.

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 would 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.

In addition LASG wishes to reaffirm its unflinching commitment to the adoption of PPP Model as a complementary policy thrust for the acceleration of infrastructure delivery towards improving the living standards of the populace. Lagos remains an investor friendly State that shall continue to ensure the sanctity of contracts, as in this case, in sustaining investors’ confidence in its investment climate as a preferred destination.

The general public is therefore enjoined to continue to cooperate with LCC's officials and operatives as it continues the expansion and construction works on the 49.36km Eti-Osa Lekki-Epe Expressway and the operations of the toll collection systems. LASG wishes you a safe and happy motoring experience on the modernised expressway with its associated free value added services such as 24/7 security patrol, vehicle break down recovery, ambulance services, amongst others.

Eko oni baje O!

Ayo Gbeleyi                                                              
Honourable Commissioner for Finance

Ade Ipaye
Honourable Attorney-General & Commissioner for Justice
Wednesday, 28 August 2013

91 comments:

★★PRINCE CHARMING™★★ said...

All for the taxes!

Mich said...

In other news,the word 'Twerk' has just been added to the British Oxford dictionary.

Anonymous said...

Wtf is a 144 naira?

BONARIO NNAGS said...

How I wish they can be allowing keke napeps into central area and three arms zone.

~BONARIO~says so via NOKIA3310

Ayo said...

And Tinubu gets richer...

For some reason I'm angry.

Anonymous said...

This is one of the reasons why investors don't plan to invest on the long run.your agreement with GEJ will not hold with any other incoming president.a country of uncertainty.

Anonymous said...

Na wah ooo

Anonymous said...

BONARIO NNAGS YOUR A GOAT FOR PRAYING TO FASHOLA TO ALLOW KEKE TO BE PLYING IN DOWN TOWN LAGOS.TOO BAD,DO YOU KNOW THAT KEKE AS IT'S CALLED OVER HERE MEANS CARTS? THAT ARE MEANT FOR MOVING AROUND WITHIN THE FACTORY,AUCTION YARDS OR GOLF FIELD.BUT IN NIGERIA;KEKE ARE SEEN PLYING FROM LAGOS TO IBADAN.WHAT ARE THE PEOPLE THAT CALL THEIR SELF FRSC DOING TO EDUCATE PEOPLE ABOUT THIS.RATHER THEY ARE ONLY INTRESTED IN EXTORTING MONEY FROM MOTORIST ON THE HIGHWAYS.

Anonymous said...

BONARIO NNAGS YOUR A GOAT FOR PRAYING TO FASHOLA TO ALLOW KEKE TO BE PLYING IN DOWN TOWN LAGOS.TOO BAD,DO YOU KNOW THAT KEKE AS IT'S CALLED OVER HERE MEANS CARTS? THAT ARE MEANT FOR MOVING AROUND WITHIN THE FACTORY,AUCTION YARDS OR GOLF FIELD.BUT IN NIGERIA;KEKE ARE SEEN PLYING FROM LAGOS TO IBADAN.WHAT ARE THE PEOPLE THAT CALL THEIR SELF FRSC DOING TO EDUCATE PEOPLE ABOUT THIS.RATHER THEY ARE ONLY INTRESTED IN EXTORTING MONEY FROM MOTORIST ON THE HIGHWAYS.

Anonymous said...

They have not stated oh the toll is changing from N120 to N144 in 30 years I wounded what they will pay.

carolyn t spice said...

Abgg he too long

bonita bislam said...

Eyes rolling

Anonymous said...

The more we look, the less we see. Hmmmm. 2015 election must be funded somehow. With the awesome cash being raised by the FGN through the militants turned pipeline protector turned oil thieves, APC must find a way to compete.I gotta become a politician in this country, otherwise na to just dey feel cheated. If you can't beat them...

Anonymous said...

Toks: na wa pls Gov Fashola pls pls dont give it to someone like Mr Fowler of LIRS to maintain it oooo,cos he will sleep wit all the people passing on that road.

Ganiyu Kareem said...

This is another game plan for 2015 election,pls b washful

Ganiyu Kareem said...

This another game plan for 2015 election,pls b washful

Anonymous said...

And why wasn't this done in the first place???

Anonymous said...

I guess Tinubu needed to cash out his investment. Election dey come oooo

Anonymous said...

Oya shey dey wee reduce d toll fee now abi? Plenty grammer. Is dat not y dey say dey r buying it ni.

Anonymous said...

Off point! Mtchewwwwwww.

Ikechukwu Maduka said...

Ode. That is not d issue atvhand

ty said...

Its high time LASG terminate the contract without delay

ty said...

Its high time LASG terminate the contract without delay

SIMPLYCOCK said...

Wetin concern Agboro, concern overload? How will this development impact the koko of the matter? Will it now stop the tolling on that corridor????? Let LASG tell us how much they paid in order to execute the takeover of that company. Let them disclose to us who the majority shareholder of that company had been before this takeover. Let them debunk the claim that LCC had always belonged to LASG or its agent, but was being masqueraded as a privately owned enterprise in order to establish a basis for tolling on that road. Was the LCC not making enough money from tolling on that road as if by default? That it was a cash-cow goes without saying! So it was a successful company before the takeover bid was made. From what we know being trained lawyers, takeovers operate mostly when the target company is financially floundering, its books telling of serial losses over a period. Thus takeover bids constitute a vote of no confidence being passed on the board of the target company. This is why this whole thing is suspect to me. Was the contract signing an open affair since it involves Lagos State, a public institution of governance? Questions upon questions upon questions. My gut feeling tells me it is just a drama being played out by crafty state actors, cast and crew playing fidelity to a well-written script. For me the plan was well hatched and executed, a concatenation of well-guided events masterfully stringed together to achieve the State's inveterate pursuit of big-kill cash; it's all about shoring up its revenue base in the most devious variegation of ways...

Omotayo Alli-Hakeem said...

They shld go n shut up there o, nobody is gonna buy all d format they think they can use, election is on d way, Lasg isn't 4 d masses and that we know. Or maybe they want 2 use style. Style 2 increase it since pple are paying double @ d ikoyi-lekki bridge.

Anonymous said...

i am so happy about this, fashola is such a wonderful and learned man. was wondering why he increased d interest rates on loans...it was probably to drive those useless hi-tech people away knowing fully well they would increase their toll fee to pay the interest on their loan. now fashola can get a proper construction company like julius berger to construct that road in no time. for many years now, all of us that live on ajah axis have been suffering so much. u cant even go to d next shopping complex bsides ur estate with a car cuz u may spend 1 to 2 hrs on d road. u can live d house after 2 cuz d traffic has started building up and u may spend 5 hours just going home...we have really suffered all cuz of that mumu tinubu cuz majority of d toll fee is going to him so he subjected us to suffering for so many years nw. now fashola has used strategy to collect d road back from him. i only hope now fashola can reduce d interest rates on loans again.

KINGSLEY LEO said...

Hisssssss! N walks away

Anonymous said...

Linda, your opening comment is misleading and negates the subject content in the 2nd paragraph.

Anonymous said...

Pray to buy ur own car

Anonymous said...

Government of the people in did

Anonymous said...

Them just they fake us in this country fake people election tin.

Anonymous said...

LASG don see d kain money wey LCC dey make. Come buy out the company so that they cn control the revenue...lie lie govt. Eko ni baje o sha :)

Anonymous said...

D only mssg I know dt was passed across is dt d toll fee has increased from 120 to 150 in reality&nt 144 as it is stated above..plus anythin dt govt is in charge of,is nt to mk d prices of things affordable for its citizens.eko o ni baje o!

Anonymous said...

I didn't read all dis @ all, all I know is that the lagos state government is really losing its mind, as in d pple in government r totally mad, dose of us that live on the island dnt av water supply and the lagos state government jst cut out our only way 2 gt water by telln d truck pushers nt 2 operate agn. Dear Mr Fashola incase u c dis or sum1 who knws who sees dis, u av 2 provide an alternative way 4 us 2 gt water b4 u take away d 1 we had. B4 u knw it nw dey will say we shld dnt make use of generators agn. Awon oloriburuku pple, senseless governor wit usesless cabinet.

Ayo Badejoko said...

Election is coming up.

Anonymous said...

I didn't read all dis @ all, all I know is that the lagos state government is really losing its mind, as in d pple in government r totally mad, dose of us that live on the island dnt av water supply and the lagos state government jst cut out our only way 2 gt water by telln d truck pushers nt 2 operate agn. Dear Mr Fashola incase u c dis or sum1 who knws who sees dis, u av 2 provide an alternative way 4 us 2 gt water b4 u take away d 1 we had. B4 u knw it nw dey will say we shld dnt make use of generators agn. Awon oloriburuku pple, senseless governor wit usesless cabinet.

Anonymous said...

Fuck all yuhh!"In 2pacs voice"

Anonymous said...

I hope d state run it better

Anonymous said...

Trust me, now that Lagos state has managed to buy this over, toll fees will rise to 150.00 per vehicle. With the likes of Tinubu and Fashola still much in power. Instead of that money going to LCC, they would prefer to bring it home. Infact the introduction of the new fee will be New year gift for lagosians plying that route. I pity this state.

Shyla

Anonymous said...

Ucl nokia 3310 central area of where biko? Abj? Wetin concern fct n lag toll plaza now?

Anonymous said...

Our Government is a RIP-OFF!!! Making it sound like they r doing us a favor... What in the world are taxes for? Nigerians pay taxes. Taxes are for social amenities e.g. Roads. We shouldn't pay any silly tolls in the first place. This government no get fear of God sha. smh!

Anonymous said...

All his tactics are jst in preparation for the 2015 elections,he knws pple are turning against him......mtchewwwwwww...........Eko o ni baje ju bayi lo ooooo

Bonkers said...

No one's claiming first place now for this article o. If it was a lingerie article or one with the caption, Simon bangs the shit out of his best friends wife the whole of Lagos would be giving their "views". Smh. I think its commendable what the LASG is trying to do but my question still remains, why wasn't this an option during the planning stage? Why now? What's the catch?

Anonymous said...

Don't know what this men are talking about here, eleven yeas gone still counting don't think I will fly in to Lagos sorry 042

Ikenga said...

I hope this is not a case of "the more you look, the less you see" and not in anyway related to the "Family Tree" advert on Tinubu by the PDP on the pages of some newspapers. The coincidence is just unnerving.

Anonymous said...

3 toll gates collecting money on dat road .I pity my broda & sis living in ajah area. Poor lag folks.

Anonymous said...

Approx 150

voice said...

'' To make it affordable for road users'' and yet the toll fares are being increased. Who is fooling who?
Truth be told.....you do not toll an existing road built with tax payers bucks.

Anonymous said...

I guess dis is a good news.N144? dats exhortion.so dat is d amount one will pay 4 three tollgates all in one expressway!!! Now dat LSG is involved guess it will b reduced to N50

Anonymous said...

MY GOVERNOR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Anonymous said...

Fraud fraud why do they wait for so long? every movement is for 2015 election..Jagabam of lagos is a thief.

Anonymous said...

Way to go gov BRF!!!!! U continue to make us proud!!!! All we need to do now is drive out all these retarded ibo scum who believe lagos is their fatherland and we'll be straight..we've been way too accomodating. Feel free to comment all u want...I won't be reading it...but you guys know I speak the truth and in my opinion you can all go to hell #tribalistfuckheads!

Anonymous said...

So government nor fit do road make pple pass free abi? Dem prefer to dey steal d money and use am build houses and malls for lands wey dem steal for Ajah,lekki and VI. God dey....

Diva1996 said...

What is 144 naira

Anonymous said...

lol. as far as they would complete the road everything sounds fine

flaky said...

People are paying @ one toll plaza,they are not finding it funny, not to talk of paying 3 toll fee daily whether going out or coming in.Your excellency sir we are not finding this funny at all.

sunday obi said...

Dats a good one ...jst dat wld ve prefered it under a private company cos of d story of embezzlement ...u did wel gov fash

flaky said...

People are paying @ one toll plaza,they are not finding it funny, not to talk of paying 3 toll fee daily whether going out or coming in.Your excellency sir we are not finding this funny at all.

Anonymous said...

Bloody Marafoorkars

Anonymous said...

Fashola and tinubu have concessioned all lagos property to themselves. They are just exploiting pple here and there. Tell me how one can be paying 144 naira for two tollgates everyday, to and fro? Calculate the money in a month. What you are seing in lagos now is the same way APC intends to rule NIGERIA. Tax pple arbitrarily and erect tollgates overnite. Nonesense people.

Enam Jonah said...

hmmm!..because 2015 is fast approaching.Its a game plan.

Anonymous said...

this govt is full of ideals caring and listning.okumola from A-yes.Epe.lagos

Enam Jonah said...

Hmmmmm!..because 2015 is fast approaching..its a game plan>

Anonymous said...

You are just a fool. Pple like you think from their mouth instead their head. You wanna drive pple that have bought all your lands abi?? Soon they will buy you too so you can be washing cars and clothes for them. See him ugly face

Anonymous said...

Greed!!toll gate 1 alone records over a million cars on each side of d road in a day making 2 million cars.at 120naira per car (240 million naira on d average per day) let's not even count d buses and other vehicles/motors,dis is evil !!

Anonymous said...

You mean "watchful".

Anonymous said...

Brov...there was greed in that concession..they have made the back the money spent on that rd times over already and did not need to go 30years. That is too much. This is money meant for lagos..not Tinubu (who will still b smiling to the bank anyways)

Anonymous said...

Who are the faceless investors that we don't know and that have agreed to a 'scam' share buy back from the LASG? The more we realise the urgent need to properly quote the shares of these entities on the floor of the stock exchange, the better for all of us. The citizens may not even have the need to lament increase in costs that may be driven by demand and supply laws. They will be happy to receive dividends and capital appreciation from their investment in LCC. In that case, what goes round will eventually come round.

Taiwo said...


Now im confused, Lagos users pay all those Taxes , at least i know i do. Now if you have signed a concession arrangment with the LCC, There are several options
1. As far as you know that there will always be cars passing through that route, any sensible bank or banker can arrive at agreements either to extend the loan agreement with the company and government
2 Create arrangement that allows for the Funding institution waivers supplied by the concession company and rated as payback
3. re-negotiate contractual terms with a payback guarantee from the Lagos state Government as "backers" even after the contract tenure has expired .
4.The concession company and goverment can evenreview the quaterly/Bi-annual/Yearly profit value of concession company and review to present realities.
5. Lagos state provide further Lucrative co-operative business options to ameliorate the cost of interest ( if any really exist) in short term state ventures to cover for Long term spend- in rationed options ....and a Tonne of available options !!!
Make dem stop am , we are not fools, we know you cant win government but please Haba , we know the truth so you govt people you cannot fool us ....na Govt Magic ! all this for free money

D said...

Nice one.

Anonymous said...

Lol! On the real the way ibo people talk, u would think they owned the bloody state and the yoruba's were the outsiders, and do u notice how quick they are to say derrogatory stuff about yoruba's? Talking about yoruba's are cowards this and that..we are just a very welcoming people you idiots, cos when e happen una nor go remain o! Make una cam dan

Anonymous said...

Lagos Lagos my people wake up to reality,APC IS NOT SURE THEY WILL WINE LAGOS STATE,SO THEY ARE SECURING THEIR INVESTMENT, IF ANOTHER PARTY COMES IN THEY WILL , OR THEY MIGHT REVERSE CONTRACTS,NEXT THING TINUBU WILL SELL MOST OF HIS VISIBLE ASSETS TO PLAY SAFE.

bitchplis said...

Alhaji Gani,people should be 'washful'? Seriously?

insideman said...

Well i think Lagos is doing the right thing, it is better to have the government take over it and the people can protest the price at any time, Than for it to belong to some investors and they keep increasing the price under the umbrella of their getting money back before the 30 years.

kaego said...

Election Election Election!!!!! Who be mumu? Who fashola and tinubu dey fool? After dem use our money repair d road, tell us say na private company, con give dem 1 kind name *LCC* dem won use dis strategy tell us say dem do sometin for lag-gidi *No way* Mbanu.... ACN pack and go, d one wey una rule don do make another party do their own.. After una don share all d land wey dey island and mainland within unaselves finish una still dey talk of toll gate, God no go forgive una @all...... who be LCC? Make una (fashola and tinubu) tell dem to show their face... Chaiiiiii dis pple don finish us for dis country.
I pray make I no join politice oooo I pray *headshaking*

Anonymous said...

The way the Yoruba people have allowed this Tinubu of a man to turn himself to a demi god is beyond me. Fashola and Tinubu run the state as if its a family business. Why should there be two tolls Within the same vicinity? So if my office is in Victoria Isalnd and I live in Ajah, I would have to go through two tolls and pay twice, Is that not robbery? The rich are getting richer and they keep robbing the poor to feed their greed. Rubbish

j said...

Is that why you are calling him a goat, I see you don't have a sense of humor smh!!! Your bold comment have been noted fool

Anonymous said...

vote out ACN or whatever the call themselves. buy back the concession then toll it for us after all taxes... ole

Terry Gareth said...

Going through most of the comments here shows how shallow most of the LIBERS are in grasping common English language. Simply put, the LASG is subsidizing the Tolls to cushion the inflationary effect that the concessionaire (LCC) is incuring. In essence, the LASG has prevailed on LCC not to increase the tolls as they will bear it.

Bucky said...

Beautiful write up...I couldn't stop smiling as I kept reading...such eloquence...Kudos 2Messers Ade&Ayo...Kudos 2LASG!

Eko oni baje ooo

Anonymous said...

Lolll!So Tunde Fowler is that kind of man.I never knew

Terry Gareth said...

Going through most comments here indicates that most Nigerians need to go back to school. What the LASG is trying to do is to cushion the effect of inflation as they have realised that leaving the pricing of toll in the hands of the concessionaire (LCC) will bring a lot of hardship to the commuters plying that road. In essence, the govt has decided to subsidized the tolls and ensure that LCC does not increase the tolls in accordance to dictate of rising cost of executing/maintaining the project for the duration of the agreed period.

Eguko Efetive said...

It is important we keep abreast of the authentic facts and stop being stereotyped. Tinubu does not own Lagos like so many people alleged, buying over the right of LCC is a move in the right direction to control the toll fee. Its important we know that contrary to what various media initiatly published LASG has not terminated its concession contract with LCC over the reconstruction and maintain of the Eti-osa lekki-Epe Expressway. If anyone have proof to implicate Tinubu, the person of Fashola, APC and other so called 'Power house', please let them bring forward or desist from speaking jargons. Buying over the rights of LCC implied buying over the shares from investors like AFDP, First Bank and the likes which obviously are not own by Tinubu or APC. check out the proof @ http://www.afdb.org/en/news-and-events/article/nigeria-afdb-approves-us-85-million-for-lekki-toll-road-project-3427/

Anonymous said...

APC must not rule!

sQo said...

Mr Ade Ipaye. Our role model. I love Lagos

Anonymous said...

This govt is very insensitive esp to d plight of its staff,they reduce their salaries as they so wish,deduct different amts every month,giving it different names. If u don't leave our salaries alone esp those at LASUTH,where we work like Jackals,just forget 2015
If u can't improve us why make it worse.

Anonymous said...

This is such a big scam. Tinubu steals public funds before leaving office, installs fashola. uses stolen funds to build the road and run it to recover some profit. fashola/lasg buys rights to the road back from him with interest. its but embezzlement and money laundering at the same time. APC corrutpiuon will be worste

Anonymous said...

Terry Gareth and Eguko efetive I believe dat both of u re APC or ACN agents.... Thief thief pple. Una won decieve us with English abi? We nor gree. Make una tell fashola and tinubu say d one wey dem don steal for dis our lagos don do, e reach na... Make dem go spend dat one let another party rule....

Anonymous said...

Try to drink vry chill lacasera.

Anonymous said...

@ Anon 10:15..Yes motherfucka...we will drive you..despite all the lands you have bought. If I recall its ibo people who are mostly houseboys and not yoruba..so your dad prob used to be our houseboy. Oh btw I'm faaaaaaaaaar too wealthy to be bought..at least not by anyone in your retarded spearpart dealing, human meat eating, women biabia having, mostly male chauvanist, yoruba wanna be tribe..yea I said it..we are what you wanna be but can never be so like let me reiterate...go...fuck...yourselves!!!!!! Wait till quanta happens and u'll see if u can be chased or not. Bloody bastard

Anonymous said...

Finally...someone with sense