BEVERLY HILLS, February 16, (THEWILL) – The Lekki Concession Company (LCC) has launched an appeal to pacify aggrieved Nigerian youth bent on preventing it from commencing business following the four-month shutdown of its tollgate since October 20, 2020 when soldiers shot, killed and maimed peaceful protesters at the site.
Citing the need to service subsisting debts of over N23.9 billion to local banks and $49.6 million to foreign institutions as well as the fate of its over 500 workers, the company’s Managing Director, Yomi Omomuwasan, addressed a press conference in Lagos yesterday to pacify young Nigerians to give their blessing for Lekki Tollgate’s reopening.
He alleged that fake news peddlers were floating misinformation about the company’s ownership in order whip up public sentiments against its return to business.
Omomuwasan said while LCC empathised with Nigerians who suffered losses during the #EndSARS protest, the continued punishment of LCC for whatever happened on that fateful night, after its facility was forcefully taken over by the protesters, would amount to subjecting the company to double jeopardy.
He explained that the company’s failure to resume operation was negatively affecting its loan obligations to local and international lenders, maintenance of the road, its ancillary services and staff welfare.
He disclosed that LCC owed somewhat in the neighbourhood of N23.9 billion and $49.6 million to local and foreign lenders as of December 31, 2011.
He said, “As of January 31, 2021, the outstanding debt liability from the local lenders is in the region of N11.6 billion and from the foreign lenders $31.1 million (USD), with the difference being the amount LCC has so far paid the lenders. It is important to say that, before the #ENDSARS protest, LCC had continued to meet up with servicing its loan obligations without default to the lenders.
“However, since the commencement of the #ENDSARS protest, the forceful takeover of the Admiralty Circle Toll Plaza and the unfortunate incident of Tuesday 20, October 2020, we have had to plead for moratorium repeatedly with our local and international lenders.
“It has been impossible to meet our loan repayment obligations- and obligations to our workers –given our inability to collect tolls, the main revenue source from which the repayment was contractually expected to come.
“Again, this explains where the bulk of our earnings goes, contrary to the false claims on social media that the toll plaza is a cash cow. If we default in payment of these loans, the implications for the business community are too grave to be imagined.”
The MD further explained that contrary to allegations that all the Company does is collect tolls, the LCC renders a host of value-added services.
“Daily users of the Eti-Osa-Lekki-Epe Expressway would testify that LCC provides free 24/7 towing services, accident and breakdown recovery, emergency services and 24-hr security patrol along the express road. LCC is solely responsible for the man-power and operational cost of all of these ancillary services at no cost to road users,” he said.
The Toll Plaza, he explained, was never shut down. “LCC was only asked to leave the Plaza untouched until the completion of the forensic audit instituted by the honourable Panel.
“It is important to recall also that at no time was the Toll Plaza ever designated ‘a crime scene’ by the Panel, as this would have warranted the total stoppage of vehicular movement at that section of the road.
“On the contrary, vehicular movement has continued unhindered on the road since Wednesday, October 21, 2020,” Omomuwasan said.
The Managing Director further explained that the Panel’s ruling permitted it to access the Toll Plaza, evaluate and assess damages and necessary renovation.
According to Omomuwasan, “Nowhere in the world is a company shut down indefinitely over an enquiry into an incident. We must bear in mind that as a business, we also have hundreds of workers, who have thousands of dependents, to take care of and monthly financial obligations to honour.
“Besides, evaluation and restoration require time, and further delay can only worsen the Company’s situation as a going concern.”
On allegations that the LCC pays some outdoor advertising companies, the MD said it was a lie and that the opposite is the case.
“As part of efforts to open up other streams of income to service our loan obligations and continually maintain the road as done in other climes, LCC partnered with various advertising agencies, who then pay LCC from the revenue they generate from their advertising platforms. It gives us a sense of fulfilment to note that most of these agencies are the new generation advertising agencies owned by young Nigerians,” he said.
He gave the names of the outdoor advertising agencies as E-Motion Advertising Ltd, Prodigy Advertising Ltd, Loatsad Promo media Ltd and Eye Kontact Ltd.
While these companies actually paid LCC for the use of its advertising platforms, he said, some “purveyors of fake news” went to town to insinuate that LCC paid one of these companies, a claim he described as totally false.
Omomuwasan also disclosed LCC’s ownership structure, saying four private firms originally owned it before the Lagos State Government acquired it.
“As of December 31 2011, the shareholders of the Company were African Infrastructure Investment Fund (AIIF); Asset and Resources Management Company Ltd (ARM), Larue Projects Company Ltd, Hi-Tech Construction Ltd.
“However, in December 2014, the Lagos State Government acquired 100% shareholding right in the Company. The shares were accordingly allotted as 75% to the Lagos State Government and 25% to the Public-Private Partnership (PPP) Office.
“The records are there at the Corporate Affairs Commission (CAC)’ including the regular filing of returns and tax obligations,” he explained.
About the Author
