Lagos state government takes over Lakki-Epe Expressway concession

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Lagos state government takes over Lakki-Epe Expressway concession

Lagos State Government, Nigeria, has taken over the concession rights of the Lekki-Epe Expressway from the Lekki Concession Company, LCC.

The state has bought out the equity interests in the concession. ARM Infrastructure Fund was the majority shareholder in Lekki Concession Company.

The State Commissioner for Finance, Mr. Ayodeji Gbeleyi stated:

We paid N7.5 billion (US$37.6 million) in the first instance and then N7.5 billion in the second instance. We paid the second trance on December 11, 2014. From that date, government took effective control of Lekki Concession Company."

Lekki Concession Company, LCC had a 30-year concession under the build, operate and transfer (BOT) system. The concession agreement for the road was was executed on April 24, 2006.

Regarding the consortium of lenders, Mr. Ayodeji Gbeleyi said:

"With respect to Lekki-Epe road, we have an amount of about N40 billion outstanding to this consortium of senior lenders. The senior lenders area made up of eight financial institutions including African Development Bank, Standard Bank UK, IBTC Stanbic, First Bank, Zenith Bank, Diamond Bank, Fidelity Bank and UBA."

"The debt exposure to the company must be honoured over agreed and contracted terms and conditions for our investment climate, not just for Lagos, but also for Nigeria."

The Eti-Osa Lekki-Epe expressway is the principal arterial road connecting the Lekki-Epe axis to the rest of Lagos. The road PPP project included the rehabilitation and upgrade of the carriageway. It also involved the development of new bridge structures, drainage systems, underground service ducts, and various other features.

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