• Thursday, March 28, 2024
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We have outstanding N11bn, $31m obligations to our lenders- LCC

Lekki Concession Company Limited

The management of Lekki Concession Company Limited (LCC), operators of the Lekki Toll Plaza, says the company has outstanding financial commitments to its local and foreign lenders, amounting to N11 billion and $31 million respectively as at 2020.

Yomi Omomuwasan, managing director of LCC, who spoke with journalists in Lagos, said these debts, among other commitments, including the need to carry out a comprehensive assessment of losses alongside its insurers, make it urgently imperative for the company to repossess the Admiralty Toll Plaza.

Besides, the company cited the need to continue to render services to the motoring public on the Lekki-Epe Expressway- such as maintenance, rescue, 24/7 security patrol, staff pay roll among others, as justifications to fully return to business.

According to the managing director, the naira component of the loans are to local financial institutions, while the dollar component is to the Africa Development Bank (ADB), from whom the initial shareholders of LCC borrowed to finance the construction of the expressway some years ago.

Although the Lagos State Government bought out the initial shareholders in LCC and took over the company 100 percent, under the former administration of Babatunde Fashola, in 2014, the liabilities inherited, are still outstanding, and company is obligated to settle them to avoid running foul of the agreement it signed with the lenders, which could result in a legal tussle, Omomuwasan told journalists.