MULTIPLE TOLLS ON LEKKI-EPE EXPRESSWAY DROP PROPERTY VALUE BY 30 PERCENT

The three toll gates planned for Lekki-Epe Expressway is already impacting negatively on the value of property in that axis with about 30 percent differential in the prices of property before and after the toll gates, THE INFO EXTRA  investigations have revealed.

The drop in property value started a couple of years ago when tolling started on the expressway. The drop in property prices had been gradual, beginning with 10 percent and recently, a bit drastic, rising as high as 20 percent.

The findings further reveal that there is a major disparity in property values beyond the Chevron Toll Gate, which is the second after the Admiralty Circle. The disparity is such that parcels of land before and after the Nigerian Conservation Foundation (NCF) office, whose values were at par when the second toll gate was not there, now have as much as 50 percent value difference between them.

Tolling on the expressway has been a subject of unending controversy and litigation, and the contention of those opposing the tolling is not only that the rates are outrageous and inconsiderate, but also that three toll gates on a 49-kilometre expressway are too many and therefore exploitative.

Worried about having to pay tolls at different points on the same road before getting to their houses or offices, prospective home buyers and tenants have decided to avoid the Lekki axis, especially those beyond the second and third gates.

Gbenga Olaniyan, a resident and developer in the area, disclosed to newsmen that places like Victoria Garden City (VGC) had felt the brunt of this development heavily, explaining that about five years ago, VGC was more costly than Lekki.

"A property that was rented for N3.5 million per annum in VGC was at par with Nicon Town, a relatively upscale neighbourhood in Lekki, before the toll gate. But now, while VGC has dropped a little, Nicon Town has gone up 100 percent in four years.

"In VGC, a property of N4 million per annum four years ago has dropped to N3.5 million, while a N3.5 million property in Nicon Town four years ago has gone up to N7 million, just because of the toll gate," he said.

Samuel Ukpong, CEO, 1004 Estates Limited, had told BusinessDay in an interview that part of the reasons for the rising demand for their apartments was the tolling on Lekki-Epe Expressway, which has compelled some Lekki residents to move over to their apartments.

He explained that many of the Lekki residents spend between N500,000 and N600,000 a year on tolls, depending on the number of cars they put on the road, and the number of toll gates they have to pass before getting to their offices or homes.