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Opinion: Time To Overhaul Lekki Concession Company-Michael Effiong

Published

4 years ago

July 16, 2020

Editor

By Michael Effiong

If you live in Lagos and commute around Nigeria’s commercial capital, and have any business around the Lekki-Epe axis, chances are that you would have encountered the Lekki Concession Company (LCC).

The company, which is now publicly owned, has become a huge uncontrollable monster with no modicum of respect for the very people it is supposed to serve-and is attracting very negative vibes for the present government.

Before going on to outline my angst against LCC, it will be necessary to take us down memory to the very beginning, could it be that the circumstances of its birth had led to its present show of impunity and “I don’t Care attitude”?

Established in 2006, the Lekki Concession Company began as a Special Purpose Vehicle set up to execute the Lekki Toll Road Concession Project. The Project was a Public Private Partnership (PPP) scheme and used the Build-Operate-Transfer (BOT). The Concession was for a period of 30 years.

Conceived during the Tinubu administration, it was hailed as the best thing to happen to Lagos after the Third Mainland Bridge, it was applauded as innovative and well thought out. The government got kudos for the gigantic effort to modernize the Lekki-Epe area with our own equivalent of the German autobahn.

The original stretch of road was made up of two lanes and was tarred by the Lateef Jakande administration and so this was an initiative meant at improving that impressive job by the action governor.

To begin the execution of the project, funding came from different sources including a $85million concessionary loan from African Development Bank. This loan gave the impression that LCC had enough money to complete the whole stretch plus the alternative routes that formed a part of the project’s originally- approved design. The company had indicated that it would toll the road from Kilometre 3, Kilometre 13 and Kilometre 23.

Lagosians were enthusiastic and cared less about the tolling as far as the project is completed and they can drive smoothly on well-paved expressway from Victoria-Island to Epe.

The enthusiasm of having such a fantastic road was really high and I remember having a chat with then Managing Director/Chief Executive Officer of LCC, Mr Opuiyo Oforiokuma on a Lagos-Accra flight. With a smile on his face, he told me that this expressway would add value to that corridor as well as enhance economic development and productivity. “Lagosians should be patient, they will thank us years later for the work we are doing there”, the urbane gentleman stated and I had no reason to doubt his confidence.

I want to say that Lagosians have been very patient with LCC for the past 14 years. Contrary to what was proposed and despite not working at the speed expected, LCC has been collecting toll. It also did not do much in the area of alternative routes.

Therefore, all road users going to Lekki from Victoria Island or residents of local communities along that corridor intending to to go to Epe or Victoria Island have no choice but to pass through this route and pay the toll.

In not time without much work, LCC decided to build another toll plaza just before Oluwanisola Estate, the impressive home of famous industrialist, Chief Rasak Okoya and begun a test run in preparation for the beginning of another tolling spree before vociferous protests stopped that misadventure, since then, it has not had the gumption to attempt it again

As if it did not have its hands full, in 2013, Governor Babatunde Fashola added the lovely Lekki-Ikoyi Link Bridge,a 1.36 km cable-stayed bridge to the already juicy pot of soup enjoyed by LCC. It now had bigger responsibility and making money from two fronts.

Buoyed by this monopoly and deeming itself as now untouchable, LCC forgot its responsibilities completely. The road was not being worked on at the speed expected for a private enterprise. It was in the midst of this inaction that we woke up one fine morning to be told that the Lagos State Government was buying back the LCC stake for N7.5billion.

Governor Fashola had sent a letter to the Speaker, Rt Hon. Adeyemi Ikuforiji for a further amendment to the year’s budget, this he said is “Predicated on the need to fund the acquisition and existing concession rights and toll revenue benefits held by the Lekki Concession Company, the Concessionaire for the Eti-Osa-lekki-Epe Expressway. This will effectively accelerate the transfer of the ownership of the road to the state, leaving the state with wider policy options with regards to that all important road”. Of course there was furore in town.

In a statement signed by Ade Ipaye and Ayo Gbeleyi, Commissioners for Justice and Finance respectively, the state government said that it had engaged in buying back of the concession rights ahead of the 30-year period stipulated in the Design, Build, Operate and Transfer (DBOT) Concession Agreement. This, according to the state government, is to be achieved by purchasing all the shares in LCC.

The State Government stated that its decision to “buy back” the concession rights was due to several developments not envisaged in the 2006 Concession Agreement.

According to the statement, with the devaluation of the Naira and increased costs of construction, the underlying assumptions and market indicators under which the transaction was concluded had drastically changed in a manner that it can no longer be sustained in its current form.

“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.”

The Lagos State Government said that it felt obliged to buy out the interests of the LCC 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,” the statement said.

“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,” the commissioner said.

Now, take another look at the some lines of this statement, LCC was grumbling about not collecting additional toll, imagine! Anyway, the Lagos State government said “it will operate the new LCC for the benefit of the taxpayers and the larger society”- and this is the crux of the matter and the reason for this my epistle.

Has LCC since that buy back been working in the interest of the people? I have my doubts, without breaking a sweat, I will say a capital No. Its activities to say the least has been anti-people.

LCC, for example, has completely abandoned the idea of extending the road, it is languishing around Ajah presently. Companies and commuters are groaning over loss of man hours and revenue.

Today, plying that part of Lagos is nightmarish. It is at your own risk. Many sections along the road have collapsed. In deed, it is a complete embarrassment, it is a huge insult to add the word “express” to that road, it has become that bad and people now derisively refer to it “Lekki-Epe Slowpress Road”

God help you if you are caught on that stretch of road on a rainy day, be ready to have your breakfast, lunch and if care is not taken, dinner enroute your destination.

A friend who was so unfortunate to experience LCC’s idea of an expressway wrote on facebook that his SUV (Sport Utility Vehicle) was disgraced that day by the rain and the gullies, and I jocularly wrote that next time, he should ensure he rides in an HUV (Heavy Utility Vehicle). It was a joke, but for those who go through this nightmare everyday, it is not a joking matter at all.

As if that is not torture enough, on the Lekki-Ikoyi Bridge, LCC’s incompetence is rearing its ugly head again.

As if that is not torture enough, on the Lekki-Ikoyi Bridge, LCC’s incompetence is rearing its ugly head again.

We all know that the government has ordered that no cash payment would be accepted on that bridge currently, maybe, for the sake of probity, which is a good thing, but some people are hell bent on frustrating or should I say sabotaging that noble effort by Governor Sanwo-Olu

Can you imagine that I have been trying for over a week to use the LCC webportal to register and purchase the required toll pass to ply the bridge?

All I have seen written on the page www.lcc.com.ng is “We’ll be right back. Our site is undergoing scheduled maintenance. It won’t take long we promise. Come back and visit us in few days”.

LCC’s “few days” has turned into weeks, and waiting for the LCC site to function has become like waiting for Godot, that fictional character in Samuel Beckett’s famous play.

If not for impunity, how will such a website experience so long a downtime and the company had not deemed it fit to issue a statement, a clear lack of empathy for its clients.

How long does it take to fix such an important website? They simply do not care! In case the top shots at LCC have forgotten, it is a publicly-owned company, this kind of lackadaisical attitude is unacceptable.

I believe it is time for Governor Sanwo-Olu to reevaluate and overhaul the operations of the LCC, that monster must be tamed and whipped into shape before it throws a huge blot on his sterling record. We now pay higher tariff but get lower service, that is not the kind of legacy this government wants to be remembered for.

In the same vein, Mr. Governor should also revisit the issue of the Coastal Road that has been on the drawing board for years now. The alignment of the proposed road has been mapped out, property owners affected have been notified and many have been refused planning approval to ensure they do not obstruct this project. Perhaps if there are more alternatives to the Lekki-Epe Expressway, LCC will not threat its clients and commuters like thrash.

Finally, it is a good thing that Mr Governor has taken a bold step regarding construction of the Regional Road, which is also key in terms of the traffic congestion and movement around that axis, kudos to him, but it is obvious that he still has many rivers to cross.

Michael Effiong, a Lagos-based journalist, is Editor of Ovation International magazine

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Lagos-Calabar Coastal Highway: Prioritize Existing Unfinished Projects, Peter Obi Tells FG

Published

2 days ago

April 22, 2024

Eric

Mr. Peter Obi, the Labour Party’s presidential candidate in the 2023 general election, has advised the federal government to prioritize existing unfinished projects spread across the country instead of the Lagos-Calabar coastal highway project.

Obi, in a series of posts on X (formerly Twitter) on Monday, stated that the project was a misplaced priority given the numerous unfinished roads throughout the country.

The former governor of Anambra State mentioned that the budget allocated to the Ministry of Works is insufficient for significant progress on the country’s various unfinished roads, much less their completion.

Obi therefore, advised that the government prioritize the existing infrastructural projects in the country before embarking on any new and colossal projects like the Lagos-Calabar super highway project.

“The Federal Ministry of Works 2024 capital budget of N892,461,262,656.00, additional funding from multilateral loan projects of N94,828,535,243.00, alongside other expected contributions from sources like the China-Exim Bank and the World Bank, will not be enough for serious work on all the critical roads, some of which I enumerated above, let alone their completion.

So, why embark on another huge project that will not be completed in the next 20 or 30 years?

“To do so will only exacerbate the problem of abandoned, uncompleted projects that are not contributing to economic growth and overall development.

“Therefore, while acknowledging the potential benefits of coastal superhighway infrastructure, I urge prioritization of our existing uncompleted projects. We must allocate resources towards repairing and completing existing infrastructure.

“In any development formula, the primary focus should be on completing and rehabilitating existing infrastructure rather than embarking on colossal new projects that may never reach completion within the next 30 years,” Obi said.

Back in March, the Federal Government began constructing the 700-kilometer Lagos-Calabar Coastal Highway, designed to extend through 9 states with two spurs leading to the Northern States.

Recall that former Vice President, Atiku Abubakar, had earlier described the project as a fraud.

“Umahi had announced that Hitech would fully fund the project, and based on this, there was no competitive bidding. He (Umahi) then said that Hitech could only raise just 6% of the money for the pilot phase. This smacks of deceit,” Atiku said.

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2027 Presidential Race: Opposition Parties Under Attack

Published

2 days ago

April 21, 2024

Eric

By Eric Elezuo

While it is still a whole three years before the next general election in 2027, The Boss has learnt that opposition parties in the countries are being muffled to pave the way for the ruling All Progressives Congress (APC) to return to, and retain power.

From the Peoples Democratic Party (PDP), to the Labour Party (LP), and down to the New Nigerian Peoples Paty (NNPP), crises have engulfed the rank and files, in what a source told this paper was the attempt and making of the ruling party, APC, to decimate, destabilize and make redundant the machineries of the opposition parties.

It is believed that by 2027, the apparatuses holding together the various opposition parties would have weakened irredeemably to the extent the country would seemingly nosedive into the inglorious one party state that every civil right advocate and democrats abhor.

It is alleged that all the crises in all the opposition parties are being engineered by the President Bola Tinubu-led ruling APC, with the hope of getting the fibres of their system weakened, thereby luring the members of the crisis-ridden parties into the APC.

Slightly one year after the last presidential election, the two major opposition platforms, Peoples Democratic Party (PDP) and the Labour Party, have separately been embroiled in a crisis of confidence which has diminished their capacity to provide viable opposition to the ruling All Progressives Congress (APC).

The crises in both opposition parties got to a head. The Labour Party led by its national chairman Julius Abure held its much-opposed national convention which was boycotted by its 2023 presidential candidate, Peter Obi; its only governor, Alex Otti of Abia State; federal and state lawmakers elected on its platform, and the organised Labour.

In the Labour Labour, members have been embroiled in endless battle of supremacy with a faction led by Mr. Apapa steadily contesting the leadership of Julius Abure.

Consequently, the presidential candidate of the party in the 2023 elections, Mr. Peter Obi, reverence as a leader in the fold, noting that whatever the party faces presently, that Nigeria’s problems are far bigger than the crises in his party.

The LP has been embroiled in crises — ranging from allegations of misappropriation of funds, and leadership tussle, to calls for the resignation of the party’s national chairman.

TheCable reported that “On March 27, the LP conducted a national convention in Anambra state where Julius Abure was re-elected as its national chairman.

Obi did not attend the convention, fuelling speculations that he may be mulling over ditching the LP for another platform.

Speaking during an appearance on HaveYourSay247, an interactive online session hosted by Rudolf Okonkwo over the weekend, Obi said he is confident that the crises rocking the LP will soon be resolved amicably.

“Whatever is happening in the Labour Party is so minute compared to what is happening in the country,” Obi said.

“So, for me, it is something we will resolve amicably, and it is not anything to worry about. Let us worry about the country.

“Let us worry about how the average Nigerian would be able to have a means of livelihood to be able to eat, that should be our worry.”

Obi said he has no interest in being the party’s leader but only to make sure things are done properly.

“I don’t see what I do in politics as being the leader of any place or not. My position is that just like I always say, I am not desperate to be president of Nigeria, I am desperate to see Nigeria work because I know it can work,” he added.

“We have a more desperate situation. Parties are just a means to be able to contest elections. What is important is that being a leader of a party does not reduce the price of food.

In the PDP, the shenanigans of former Rivers State Governor, Mr. Nyesom Wike, has practically kept the party in constant crisis with many observers concluding that the now Minister of the Federal Capital Territory (FCT) is working for the APC, and is just a mole in the PDP. Wike has denied the allegation, however,

But news filtered in last week as that the immediate past Governor of Rivers State, and Minister may have concluded plans to attend the much advertised National Executive Council (NEC) meeting of the main opposition party, the Peoples Democratic Party (PDP), billed to hold on Thursday, in Abuja.

Impeccable source, who is in the know, told The Boss that the minister, whose membership of the PDP is yet to be revoked even as he frolicks with the ruling All Progressives Congress (APC), and serving in the President Bola Tinubu government as a minister.

The Source told The Boss that Wike’s impending presence at the NEC meeting on Thursday was not unconnected with plans, already hatched with some governors, to weaken the opposition PDP.

“Yes, we have on good authority that FCT minister, Wike is planning to attend the NEC meeting tomorrow all in a bid to weaken the fabrics of the PDP, and pave the way for the continuation of the Tinubu administration come 2027, and by extension, relapse Nigeria to a full blown one party state.

“From every indication, Wike and his co-travellers, are bent on unleashing the same crisis ravaging the third force, Labour Party, and Senator Rabiu Kwankwaso’s Nigerian National People’s Party (NNPP) on the PDP for the APC to remain the only political party in the country, and ensure that Tinubu has no challenger, come 2027,” the Source said.

It would be recalled that Wike has boasted over and again that there’s no opposition against Tinubu’s re-emergence in 2027, and that they have made sure of that. He has been compensated with the Ministerial job after he withdrew support for his party, and supported the APC and Tinubu to emerge as national government.

The Source further revealed that in the attempt to actualize the intended one party state, a lot of funding is ongoing to ensure that concerned stakeholders are ‘settled’ handsomely.

Wike, prior, during and after the 2023 general elections, has been floating in between the two major political parties; the APC and the PDP. While he claim to still be a member of the PDP, he is functioning as a minister in an APC government, mocking the inability of his party to discipline him.

While political stakeholders concluded that the outcome of the Thursday’s PDP NEC meeting will determine the path Nigeria’s political trajectory will take, and that it may portend the end of multi-party system and political democracy if Wike succeeds in his plan; every page of what finally transpired at the meeting pointed to the fact.

The much touted removal of the party chairman, who is believed to be a crony of the Abuja minister, Damagum, retained his seat, with his executives.

“It is very clear to everyone that a lot of money politics is being played to cajole many loyal members of the party, forcing them into frustration, and eventually it of the party. The option afterwards, will be the APC. This, will for all intent and purpose actualize the intended one party state as an APC agenda.

The Musa Rabiu Kwankwaso-led NNPP is not faring better either. The only governor under their ticket, Abba Kabir Yusuf, just had the confidence of their party on him withdrawn. He was fighting for his political life until suddenly it was announced the the APC in Kano has collapsed its structure into the NNPP.

“This is just another APC strategy to actualize their hidden intentions. Time will reveal the very sinister agenda they harboring,” an analyst said.

Much as 2027 is still three years away, but intrigues are in play to render Nigeria a one party state, and perpetuate the APC in power. The three other opposition parties are basically under attack to bring to pass this unpopular agenda.

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Akwa Ibom Government, Governor Umo Eno Receive Top Honors at the 10th Wonders of the World Expo in Lagos

Published

3 days ago

April 21, 2024

Admin

The Akwa Ibom State Government and Governor Pastor Umo Eno were recognized with Travellers Awards at the 10th Wonders of the World Expo in Lagos for their sustained enhancement of infrastructure, support for local talent, and dedication to investment in the tourism sector. The ceremony took place at the National Museum in Onikan, Lagos.

While Akwa Ibom won the Most Active Tourism State of the Year, Governor Eno was adjudged the most Tourism-Friendly Governor of the Year at the event that had Minister of Tourism, Mrs. Lola Ade John in attendance.

According to Amb. Ikechi Uko, Founder/Publisher of ATQ Magazine, the organizers of the event which is in its tenth edition, Akwa Ibom State won the top prize “in recognition of its valiant and resourceful efforts to drive and sustain domestic tourism by promoting the industry.

‘In 2023, Akwa Ibom was one of the states that hosted World Tourism Day (WTD ) events. The state also organized the famous Christmas Unplugged, which featured music, food, and cultures from all 31 LGAs as well as ensured friendly policies.”

While hoping that the Travellers Awards would spur Akwa Ibom to do more to dominate the domestic tourism industry, the organizers hoped that the state would gradually evolve into one of Nigeria’s top international tourism destinations.

That was not all, the state Commissioner of Culture and Tourism, Sir Charles Udoh was also recognized as one of the Top 100 Tourism Personalities in Nigeria for demonstrating exceptional leadership and innovation in the travel and tourism industry, while other Akwa Ibom indigenes and entity were also celebrated: Mrs. Ime Udo, Honorary Special Adviser to the Governor( Tourism) won Tourism Promoter of the Year, Favour Udo won Tourism Photographer of the Year, Loretta Effiong and Prince Uduak Sunday (Qua Tours) were listed among the Tourism Personalities of the Year and Ibom Air won Airline of the Year International.

In his remarks, Sir Charles Udoh, who represented the Governor at the event, thanked the organizers for the awards and noted that Akwa Ibom is certainly enjoying the golden era when it comes to tourism development. He stated that Governor Umo Eno is very keen on making Akwa Ibom a leading tourism destination with his programmes and policies.

He revealed that with the new Victor Attah International Airport nearing completion, the purchase of a ferry for the Oron-Calabar route, new developments along its coastline and the restoration work that will be done at all its major tourism sites, Akwa Ibom is well on the way to becoming the number one destination for all domestic and foreign tourists.

In her speech, Tourism Minister, Mrs. Ade John hailed the organizers for hosting the Expo, where practitioners were lectured by top experts while also rewarding those who have excelled in the past year.

She affirmed that her ministry is open to partnership with public and private sector operators, adding that tourism development can only be successful through collaborative efforts.

The event, which attracted leading and budding tourism professionals, also featured interactive and entertainment sessions.

Apart from Sir Charles Udoh and Mrs. Ime Udo, the Akwa Ibom State delegation, also included: Mr. Michael Effiong James, Senior Special Assistant (Lagos Liaison) to Governor, Mrs. Eme Bassey, Special Assistant to Governor (Lagos Liaison) and Akparawa John Offiong, Deputy Director ( Culture) Ministry of Culture and Tourism.

More photos below: