Moses Akaigwe
Before his appointment as the Managing Director/Chief Executive Officer of Lekki Concession Company (LCC) Limited in 2016, Mohammed Mubashiru Hassan, had behind him a public sector career that spanned 34 years. This culminated in his attainment of the topmost position as the Permanent Secretary in the Lagos State Public Service. Some of the key positions he held previously include: Auditor General for Local Governments for nine years; Council Treasurer/Head of Finance and Supplies; Controller and Head of Accounts; and Head of Audit Unit, amongst several other strategic roles.
He is also a holder of MSc Accounting; Masters in Public Administration; BSc (Hons) Accounting (First Class); Top Executive Leadership Development Programme from Manchester Business school, United Kingdom; Post Graduate Diploma in Marketing (Distinction); and HND (Accountancy), amongst others obtained from reputable institutions, such as the University of Lagos; Olabisi Onabanjo University, Ago-Iwoye, Ogun State; Yaba College of Technology (YABATECH); and Nigerian Institute of Journalism. He is presently a PhD (Accounting} student at Babcock University Ilishan.
In this exclusive interview, Hassan speaks on the Lekki Concession Company Limited as a special purpose outfit set up specifically to execute the Eti-Osa Lekki Toll Road Concession Project. He further dwells on the efforts made so far to execute the mandate of delivering essential road infrastructure and services along the Lekki Peninsular of Lagos, including the slight review of the tolls in 2018. The LCC boss also explains why many Lagosians now prefer to live in Lekki.
Excerpts:
Reasons behind toll fare increase
It wasn’t a few years after. We commenced around 2006, and that was about 13 years ago. So, if anything happens now, we will not say it is sudden. I did it as Managing Director of Lekki Concession Company Limited to enhance the financial status of the company.
Any future plan to raise toll fares
You see, we tried to meet certain percentage of our interest. We succeeded in that. We met our goals and there is no need to introduce another increase soon after. That will be wickedness on the part of LCC and the government, bearing in mind that the situation of the economy as at today is tough. I remember what Asiwaju Bola Ahmed Tinubu said at his 67 birthday celebration recently. He strongly advised the Federal Government not to increase Value Added Tax (VAT). So, why should we increase our toll?
Toll review and transport fare on Lekki axis
It was an increase negotiated with the relevant union. They came here and we agreed. They told us that if we go beyond N100, they would increase their transport fares. We told them we were not going above N100. That is the reason transport fares have remained the same on this axis till date. The government believed that there were other stakeholders we were supposed to carry along, especially the residents and we carried all of them along. They agreed with us on the increase, as long as we would continue to maintain the roads. That is why we have zero tolerance for pot holes. If you drive through, the Lekki Expressway it is the best maintained road in Lagos State. This is because it is delegated to LCC. It is our job to see that this road does not degenerate like others. In future, we are planning to upgrade the road. Kilometer 0 to kilometer six was designed that after 10 years, it will be upgraded. We are looking at upgrading kilometer 0 to kilometer six, until we get to the end of the road.
How toll affected Lagos economy revenue
I will tell you that the LCC operations have impacted strongly and positively, not only on the economy of the Lekki axis, but also on the economy of Lagos State. Even our people in diaspora have positive impression about Lekki. And what brought about that is this road. The reason everybody wants to be in Lekki is because of the impact of this road. I think we have achieved that and the residents are happy that the road exists within their environment. Honestly, they are happy because the road enhances their socio-economic activities. New residential estates and businesses are springing up every day. They are able to make more money and mix with different types of people. This road opens the way to Dangote Refinery which is under construction. It is also the road leading to the Lekki airport project site and seaport coming up soon. This is why we have zero tolerance for pot holes because the road is no longer a local road. It is now an international route. Recently, the Togolese President passed through this road to Dangote Refinery. Also upcoming is the Alaro City that Gov. Akinwumi Ambode recently started. It is because of this road that all these projects are coming to this area. Therefore, we will continue to maintain it to continue to attract investors.
You always say there is an alternative route at the Lekki-Epe toll plaza, but some motorists insist there is truly none; that the route you refer to is too long and has unfriendly traffic.
It is a matter of choice. If you want to get to your destination faster, you pass through the toll plaza, and if you believe you have enough time at your disposal and you don’t want to pay the toll, you can go through the alternative routes. It will interest you to know that the alternative routes are well maintained the way we maintain the main road. The only thing is that you will not pay any kobo for going through an alternative route. But here {across the toll plaza} you just pay a token. The users of the {alternative} roads are aware this is being maintained for the benefit of those who are not interested in going through the plaza.
Diversification and consultancy to neighbouring countries
That is business expansion, and I don’t see any reason one can refuse to accept business expansion. Why not? Recently, we got an offer from Kogi state, telling us that, perhaps, we will be interested in managing their toll gate. We did the assessment and we believe it is not in an environment that is attractive. We discovered it may take long to recoup the amount invested and those plying the roads are very few. That is why we turned down the request.
How Lagos huge population boosted our business
Yes, the population of Lagos is an advantage and more are still coming. In fact, on a daily basis, there is an increase in vehicular traffic, particularly at the Lekki-Ikoyi link bridge. The capacity of the bridge has been exceeded by the motorists. We now have over 50, 000 to 60, 000 motorists plying that road per day, unlike when it was planned for just 20,000 to 25, 000 per day. In any business, we always operate where we can have patronage. You cannot locate your business where there is no patronage. The more motorists ply this road, the more the level of depreciation and we don’t want to allow the depreciation to eat deep into the road. Again, we need money, considering that everything in Nigeria today is at a high cost. This is important in order to have a good road that they will be proud of, and be paying the toll with pleasure. The more population we have, the happier we are. That means we will have more money to maintain the roads and even extend it later. If we build the road and it is not being used by motorists, then what is the essence? In Abuja, we have roads, but few motorists; but in Lagos, we have motorists, but few roads to accommodate the motorists. That is why the government is trying to maintain existing roads and then construct more roads.
Benefits of e-Tag and acceptance by residents
We have so many motorists on the e-Tag using the Express lane. And one of the advantages is that, there is usually no traffic on that lane. You just drive through and the barrier opens. As you enter the lane, we have equipment that will tell you that you are authorised at the beginning with green light to move on. But if the light turns red, we have an exit in front telling you to follow another lane when you are not qualified to go through the e-Tag lane. It fastens your movement. Those in a hurry can pass through that lane. We have so many customers using that lane. Those that are not on the e-Tag cannot use the Express lane. They can use the other mixed cash lanes.
Handling queue at the toll gate
Traffic is a feature of a mega city. You can’t deny that. A mega city without traffic, I doubt whether it is a mega city. This is because, there is no way you will not have the residents plying the route. And there will be one or two challenges. But on this our own route, if you have an accident, there is a department, Route and Incident Management, in charge of very quick intervention. If the traffic is embarrassingly long, what we do is that we boom up (allow free passage of vehicles} to reduce the traffic for 20 to 30 minutes before we boom down and start collecting tolls again.
Our reaction to threat by politician to demolish toll
No. I wasn’t jittery. I believe it was a political statement just to attract support. But, if he knows what is behind the scene in maintaining this road, he wouldn’t have said that. This is because there are many factors to consider. It is just like saying if I become the governor of Lagos state, I will introduce helicopters to move passengers from one local government area to another. He has forgotten about the cost and affordability. I always remember one promise made by the former governor of Ekiti State, Ayo Fayose, when he was campaigning. He said the moment he becomes the governor, of Ekiti State, he would relocate Ekiti State University back to Ifaki. Now, more than four years after, we still have Ekiti University in Ekiti. So, it was a political statement, and it can be anything. But, when you are in and you now see the reality, you will understand that these things cannot be fulfilled. I heard it and I was just laughing. You know it is just like taking over a business.