Lekki Toll Road: In defence of LCC, resumption of tolling,By Victor Ifedayo.
Barring any last-minute change, Lekki Concession Company (LCC), a Special Purpose Vehicle set up to execute the Eti-Osa Lekki-EpeToll Road Concession Project, will resume collection of tolling on the Lekki-Ikoyi Link Bridge effective April 1, 2022, but with a two-week grace of free passage to motorists till April 15, when actual payment of tolling will commence.
Contrary to the uninformed position of antagonists of tolling, as a resident and property owner within the corridor, it is pertinent for me to help shed more light on why it is imperative for LCC to resume tolling on the iconic bridge as well as the Eti Osa Lekki- Epe Expressway.
It is important to state that LCC’s decision to resume tolling on these facilities was not intended in any way to subject motorists, commuters and residents of the area to any hardship. Rather, the action was expedient for the good of all.
I consider it expedient to commend LCC for suspending tolling on both the link bridge and the upgraded/expanded expressway for the past 18 months, aftermath of the October 10, 2020 EndSARS protests.
Due to the fact the link bridge and the Admiralty Circle Toll Plaza were among public and private infrastructure that were massively destroyed during the protests, LCC had to endure months of huge loss of revenue. It also expended huge investment on the reinstallation of damaged facilities.
It is highly disappointing that antagonists of LCC and return of tolling fail to acknowledge that, LCC as a company did not collect any toll for the use of the two facilities for over one-and-half years.
As a corporate entity with obligations to numerous internal and external stakeholders such as staff, contractors, lenders, customers, government and communities, those opposed to tolling have not shown any empathy for the company regarding how it survived for 18 months without earning income.
Yet, LCC consistently brings values that enable a peaceful, safe and comfortable every day pursuit of socio-economic aspirations for its stakeholders. The link bridge and expressway have been well-maintained for 18 months in the absence of income so that their quality and functionality would be preserved.
Apart from maintaining the facilities, LCC did not stop in providing ancillary services that make travelling on these roads safe and smooth for motorists in the past 18 months.
Over the period of toll suspension, and as it previously did, LCC has been providing round-the-clock essential services including medical emergency services to road users, ambulance/rescue services to accident victims, and emergency towing van services and traffic management to ensure smooth flow of traffic.
The company has been offering security patrol and environmental protection of the host communities through drainage clearing, silt removal and evacuation, and cutting of overgrown grasses etc to improve quality of life of motorists and residents.
LCC with over 500 direct and thousands of indirect employees remains a key source of employment generation for thousands of the youth, while the toll plazas enable residents and those plying those axes to access safe, secure, and smooth daily commute to their daily pursuit of social and economic prosperity.
As a committed socially responsible citizen, LCC through the Lekki-Ikoyi Link Bridge and Lekki-Epe Expressway has dutifully sustained the delivery of these values in service to the people throughout the 18-month period it has been away from the toll plazas.
Without any doubt, these infrastructure have become systemic important to the day-to-day security, safety and peaceful conduct of social and economic activities of Lagos State in general and within the communities where they operate in particular.
While LCC has become the goose that lays the golden eggs, the import must not be lost on all and sundry that, money is a vital vehicle. So, to emphasise why tolling needs to return is stating the obvious.
The fact is that LCC has salaries and allowances of 500 workers to pay every month. Same for hundreds of indirect employees especially the youths, as well as contractors that are providing specialised services through which LCC increases employability of Lagosians. Imagine the fate of hundreds of dependants of those workers should the company go bankrupt! Imagine the spiral effect should the company lay off staff in the event of inability to sustain monthly wage bills!
LCC has a need to meet its statutory obligations to creditors. As of December 31, 2011, the company reportedly owed N11.6 billion and $31.1 million to local and foreign lenders respectively.
The costs of construction have risen astronomically as a result of rising interest rate, and impact of COVID-19 not only in Nigeria, but globally. The inability of LCC to service its debts could lead to a takeover of the company by creditors with wider adverse implications including the ripple effect on the financial sector.
Being a public-private partnership (PPP) venture, any negative thing that happens to LCC would signal a negative trend for PPP as a model for alternative infrastructure funding for Nigeria. Investors might lose confidence in the Nigerian economy, as well as increasing the deficit on Nigeria’s ease of doing business global rating.
The Lekki Toll Road was designed as a Build-Operate-Transfer (BOT) model of infrastructure delivery, under a 30-year concession agreement. No doubt a world-class asset, it is a big gain when it is formally transferred to the Lagos State Government in good condition.
Revenue from toll collection is meant to provide LCC with the cash inflow required to recover the cost of investments, services and repay debts while meeting capital and operating costs.
It is only fair, therefore, that LCC must be allowed to return to work in order to continue to deliver the good values and support to the society, secure the dignity and livelihoods of hundreds of employees and their dependents, as well as other critical stakeholders including creditors, motorists, passers-by and communities along its areas of operations.
Ifedayo, a development and public policy analyst, lives in Sangotedo, Ajah, Lagos State
