*LEKKI CONCESSION COMPANY: LAGOS DEBUNKS TAKEOVER STORY*

*… Says Approval by State Assembly Was For Loan Conversion*

1. REPORTS that the Lagos State House of Assembly has granted the State Government the go-ahead to take over the Lekki Concession Company (LCC) are wrong. The government did not make such a request. Its request was to convert the African Development Bank loan from a private sector (commercial) loan to a sovereign (public sector) loan, which attracts a lower interest rate. This will enable the company to make some savings.

2. The government, in fact, acquired the full shares/equity of the former owners of the company in 2014. There was no need to take such a request to the House.

3. Following the Lagos State Government’s full ownership of LCC in December 2014, the loan became eligible for conversion to a Sovereign facility with an attendant significant lower interest rate of LIBOR plus 80 basis points and extended tenor.

4. In the recent past, there have been discussions amongst LCC/LASG, AfDB and the relevant Federal Government Ministries and Agencies concerning conversion of the loan to a Sovereign facility. Upon the completion of the conversion, there will be a significant reduction of applicable interest rate and extended tenor.

5. The Sovereign loan conversion will also lead to a crash of the applicable interest rate on the facility to circa 1.8%pa compared to the current interest rate of circa 4.12% p.a. Besides, the conversion will increase the tenor of the facility from the current five years to 15 years. This has the impact of spreading the cash flow impact by an additional 10 years.

6. One of the requirements stipulated by the Federal Ministry of Finance for the loan conversion is the approval of the Lagos State House of Assembly. This is the approval given by the Lagos State House of Assembly on 5th August, and NOT an approval for taking over of LCC, as reported. As stated earlier, LASG took over the shares of the previous private shareholders of the company since December, 2014.

7. Lekki Concession Company Limited ("LCC" is a Special Purpose Vehicle set up specifically to execute the Eti-Osa/Lekki-Epe Toll Road Concession Project. The project is designed to deliver essential road infrastructure and services along the Lekki Peninsular of Lagos.

8. The Lekki Toll Road Concession was conceptualized as a Public-Private Partnership (PPP) scheme, and uses the Build-Operate-Transfer (BOT) model of Infrastructure delivery. The Concession is for 30 years, following which the assets will be transferred to the Lagos State Government.

9. The Project, given its pioneering nature, had some underlying assumptions and market indicators upon which the transaction was concluded and which have since drastically changed in a manner that can no longer be sustained in its previous form. The initial Financial Model contemplated three (3) Toll Plazas. This is the basis for the initial lending and repayment in the Model. Given the non-tolling of the Conservation Toll Plaza (around Chevron) and the complete cancellation of the third Toll Plaza (proposed to be located around the Lagos Business School), the financial sustainability of the project suffered a setback.

10. Therefore, the State Government, after due consultation with all major stakeholders, entered into an Amicable Settlement Option with the shareholders of LCC with a view to bringing the project back on the path of long-term sustainability, acquired the full shares/equity of the previous owners, thereby assuming full ownership of LCC in December, 2014. This approach would particularly allow the Government to take full control over the determination of toll rates in order to continue to make them affordable.


Gbenga Omotoso
HC, Information & Strategy

https://m.facebook.com/story.php?story_fbid=10159247248821013&id=735776012

A certain iwaeda will still not understand no matter how many times the matter is explained.

Vcc

A large percentage of Nairalanders who open this thread wouldn't bother to read through it, they will just hit the reply and comment whatever their brain manufactures at the moment.

This I have seen.

Am bàck again after 4 days of suspension, Bleep you nairaland

Sincerely, I need a layman explanation

Let me help the layman reading this story summarise: nothing has changed, the toll repairs will soon be completed and you are to hand over your N200, N300 and N500 to Tinubu anytime you ply those roads.
Shikena.

.

Any person that believes that a loan can simply be converted from a 4% to a 1% interest without some conditions is a f ool.
Of course Lagos State government assumes it's dealing with its fellow par Ty as s licking dunces,so doesn't bother to tell them the whole truth.
I can bet anything that if the whole truth is known,it will be found that there is no net decrease in the interest payable.The bankers are likely to have even hdemanded some additional payment in order to simply extend the tenure of the loan.
At d end if a real calculation is done,it may turn out that the interest is even effectively higher,rather than this bare faced lie of a reduction.

Fake news from fake lazy journalists all over the land.

Lanrelagboi:
*LEKKI CONCESSION COMPANY: LAGOS DEBUNKS TAKEOVER STORY*



https://m.facebook.com/story.php?story_fbid=10159247248821013&id=735776012

Lori iro. The one Fashola paid nko

7. Lekki Concession Company Limited ("LCC"wink is a Special Purpose Vehicle set up specifically to execute the Eti-Osa/Lekki-Epe Toll Road Concession Project. The project is designed to deliver essential road infrastructure and services along the Lekki Peninsular of Lagos. Is Igbo -Efon part of the scheme? It is nothing but pure exploitation. You toll a road, people end up spending valuable time in the traffic jam without alternatives.

Radarada OSHI!

hmmmm alright

Testing the waters against reopening.


We done enjoy toll free for a while

seunmsg:
A certain iwaeda will still not understand no matter how many times the matter is explained.

Chief tax auditor, hope you can comprehend your lies now.
I wish you listen to Faud Oki on Nigeria info.

seborrhic:
Any person that believes that a loan can simply be converted from a 4% to a 1% interest without some conditions is a f ool.
Of course Lagos State government assumes it's dealing with its fellow par Ty as s licking dunces,so doesn't bother to tell them the whole truth.
I can bet anything that if the whole truth is known,it will be found that there is no net decrease in the interest payable.The bankers are likely to have even hdemanded some additional payment in order to simply extend the tenure of the loan.
At d end if a real calculation is done,it may turn out that the interest is even effectively higher,rather than this bare faced lie of a reduction.

One Seunmsg did not oooo.

Lanrelagboi:
*LEKKI CONCESSION COMPANY: LAGOS DEBUNKS TAKEOVER STORY*



https://m.facebook.com/story.php?story_fbid=10159247248821013&id=735776012

Why tolling only Lekki axis, why not Ikeja, Magodo, Oshodi, Agege?

Sanwolu has finally Sanwo (meaning paid up) to his slave paymaster at the detriment of Lagos citizens. This should be a campaign promo to opposition parties in the state against the sellout governor during the 2023 election in the state. PDP and others should use scrapping off the toll gate as one of their campaign promises to the electorates !!

Hmmmmmmm
The Koko be sey, instead of paying 4% for 5yrs, they are now to pay 1% for 15yrs.
So as to free up more fund for capital project which might be inflated as the company contract is shrouded in secrecy so no one knows it's details

#Saynotolekkitollfares
The death of the protesters at Lekki Toll gates on October 20th 2020 will not be in vain.

F**k Sanwo Olu!
F**k that vegetable looking muthafucka, Tinubu!
F**k that no brain having muthafucka, Buhari!
F**k APC as government administration.

And if you're down with this APC government.....
F**K YOU TOO!!

Okay

iwaeda:

One Seunmsg did not oooo.

Does the person you quoted ever sounded like someone that went through proper schooling?

seborrhic:

Does the person you quoted ever sounded like someone that went through proper schooling?

It is so funny, someone that claims to be auditor is defending people that took a loan, we are not told how much has been paid, how much is left to be paid and how much LCC generates per month. No wonder Nigeria is like this!

Where would the road end?

temitope27:
Am bàck again after 4 days of suspension, Bleep you nairaland

Just 4 days? I laugh.

so all they have done is reduce the interest rate by increasing the number of years ...same interest rate as before however not reduced because they are paying longer ..who are you guys fooling

Nice one and thanks for the clarification.