Lagos State Government Revives Lekki Toll Fee Increase

The Lagos State government has given residents of the state an early Christmas present as it has revisited plans to increase toll fees for the Lekki toll gates. There are two toll gates leading into Lekki: the Lekki-Ikoyi toll gate and the Admiralty toll gate which is on the Lekki Epe expressway. An earlier move to increase the toll fares was suspended after intervention from the Lagos State government.  The new  fees have however not been announced.

Current toll fees

For the Admiralty toll gate,  Danfo buses pay N80, saloon cars N120, SUVs and mini vans and pick ups N150. Light trucks and two axle buses N250, heavy duty trucks N350.

For the Lekki-Ikoyi toll gate (commonly known as Fashola bridge)  motorcycle users pay N100, saloon cars N250, SUVs, mini vans and pick up users N300, and heavy trucks  N400.

Why are the fares being increased

Managing Director of the Lekki Concession Company, (LCC) hinged the increase on the inability of the company to provide its services at current prices. Hassan also stated that the  company had not increased fares since inception in 2011.

the toll review has also become necessary to enable the company meet its loan obligations to its local and foreign lenders, considering the fact that foreign exchange rates have continued to increase astronomically in the last couple of years. lcc cannot continue to operate or provide the services required from us if we do not review the toll tariffs

Expect a push back

While the company has given valid reasons for the increase,  users of the toll gates are very likely to kick against the increase due to its multiplier effects on transportation costs. Why did the company take foreign currency denominated loans, for a project whose revenues would be earned in Naira ? Why did the company not hedge, especially in an environment prone to rapid and sudden devaluation of the Naira.

The Lekki Concession Company (LCC) Limited was a Special Purpose Vehicle set up By ARM  specifically to execute the Lekki Toll Road Concession Project. The Lagos State government however, bought off the concession in 2013.