Lagos state government to buy back road concession
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The Lagos State Government is preparing to go to the capital market to float a N87.5 billion (US$530 million) bond to buy back the concession rights of the Lekki-Epe Expressway from the Lekki Concession Company, LCC.
The Lagos State House of Assembly had on Tuesday approved the buy-back of the concession right from LCC, paving way for the government to take over the road and toll collection. According to local sources, the government intends to compensate the concessionaire to take full possession of the road.
According to these sources, the concessionaire possessed the right to increase tolling on the road at any time. Apparently, the concessionaire would have increased by 20 % the toll fee this year and another 5 % was expected for next year.
Lekki Concession Company, LCC has a 30-year concession under the Build, Operate and Transfer (BOT) system. ARM Infrastructure Fund is the majority shareholder in Lekki Concession Company.
The state government would be planning to moderate prices on the toll road in order to democratize the use of the road.
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