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Is Toll Collection on Lambe-Matogun Road Legal?
http://businessworldng.com/web/articles/1357/1/Is-Toll-Collection-on-Lambe-Matogun-Road-Legal/Page1.html
By Saka Khaliq
Published on April 6th, 2010
 
THE illegality of toll collection was made manifest in a tripartite memorandum of understanding (MoU) signed by three parties in Ifo Local Government Area of Ogun State without the backing of the law and without input of lawyers representing the three parties. The parties are the representatives of the people of Matogun-Olambe, the contractor for a road construction and Mr. Olawale Sikiru Ogundele, chairman of Ifo Local Government Council Area.

THE illegality of toll collection was made manifest in a tripartite memorandum of understanding (MoU) signed by three parties in Ifo Local Government Area of Ogun State without the backing of the law and without input of lawyers representing the three parties. The parties are the representatives of the people of Matogun-Olambe, the contractor for a road construction and Mr. Olawale Sikiru Ogundele, chairman of Ifo Local Government Council Area.
Thus, the collection of toll for the construction of Matogun-Olambe road in Ifo local government area of Ogun State from motorists and okada riders is kicking up a lot of controversies.
 
How did it Begin?
Matogun-Olambe road, a 14-kilometer Trunk C road, has gone bad, almost impassable especially during raining season, for many years now without the Ogun State Government and the Ifo Local Government Council doing anything about it. It was an abandoned road so to speak.
However, some concerned residents of the area, with the backing of the Baale, decided to repair this road on their own capacity after many appeals to the state and local government failed to yield any result.
A contractor, Bab Akins, was contracted to carry out reconstruction of the road under a Build, Operate and Transfer (BOT) agreement. A Memorandum of Understanding (MoU) was signed by the parties but without input from legal services of any kind. In the MoU, it was agreed that toll will be collected from motorists plying the road which would be used to finance the construction of the road. In addition, the toll would be collected for a period of 20 years. Neither the state nor the local government has contributed any finance to the project. Thus, the project is self-help type by the residents of Matogun-Olambe road.
 
The Controversy
While the local government as well as some people residing in the community believe the toll should only be collected after the completion of the road project, others insist the collection of the toll should commence before the start of the project.  
BusinessWorld Intelligence shows that the community started collection of toll from February 1 this year. Buses and cars plying the route were mandated to pay N100 per day, while cars, tricycles and motorcycles pay N50 per day.
Finding shows that the 14-km road is a Public-Private Partnership (PPP) project consisting of the Matogun-Olambe CDC Area, Ifo local government and the contractor.
Ogundele, who was not happy with the development, had earlier summoned all the parties involved to a meeting to explain the reason for the collection of the said fees before the start of the project. At the strategic meeting, all the parties later came to the conclusion that the toll should go on, while making moves to amend the section in the MoU that says the gate fees should only be collected after the completion of the project.
Investigation shows that the contractor had proposed that the project would gulp about N300 million. Investigation also shows that the money generated from toll collection would enable the contractor access credit facility from a bank to complete the road project.
 
Who Monitors the Project?
Chief Segun Fashoranti, secretary to the Baale of Olambe and ex-official of Olambe-Matogun Area CDC, said the road project is the cooperation among the Ifo local government, the contractor and the people of Olambe-Matogun district. Though the local government makes no financial contribution, Fashoranti said the local government promised to supervise the contractor to make sure the road is well constructed. The duration of the project, it was learnt is two years, although the community is clamouring for 18 months for its completion.
Fashoranti said the contractor had already graded the road, while works is on-going to complete the phase one of the project. He stressed that it would have been wise to pay contractor the money before the construction, but for lack of fund as well as lack of cooperation from government which he said has been approached on several occasions for the construction of the road, but to no avail.  “As a community leader, we are going to monitor them to make sure that the money is used judiciously,” he said. “Since local or state government refused to give anything to us and we don’t have anything on ground, so, why shouldn’t we collect toll? The road has been graded and the contractor is constructing the water-drainage as at now.”    
Mr. Taoriid Ewenla, chairman, Road Transport Employers’ Association of Nigeria (RTEAN), Olambe branch, said its members are cooperating by paying the prescribed money on a daily basis. Though, initially there were grumbling but they have come to realise that if the road is finished, it can put their buses in good shape.
Ogundele said part of the plan of his administration is to embark on Public-Private Partnership (PPP) project to make life better for the people in the local government, adding that, the road project is a PPP. “The local government is up to a state in some areas of the country and is the largest local government in Ogun State,” he said. There is no way government can do everything at a time, so when the community comes up with this idea, we bought into it and promised to give them every necessary backing.”
Mr Emmanuel, motorcycle rider that always take the route, was not however happy with the N50 he is paying on a daily basis, saying, he was not sure the road project is going to be real.  Emmanuel foresees embezzlement on the part of the stakeholders especially the contractor involved stating that aside this money he pays on a daily basis, some policemen along the road also collect N60 on a daily basis.  “I don’t even understand the whole concept, but if it is not abandoned half-way, it would be good for us,” he said. “This is because this is the second contractor that will take over the construction of the road. The first one was sent packing by the community.”
A bus driver in the area is of the opinion that unless adequate measures are put in place, the construction work can easily sparks off crisis in the community after people must have been tired of paying the daily collection. He also advised that adequate awareness should be put in place so that residents can be carried along as the project progresses.
Comrade Adebanjo Kayode, an official of the contractor handling the project, said the collection of the toll is meant to guarantee a bank facility. The collection of toll, he said, was not meant to defraud people; rather, it was to assist the community on the construction of such road which has been in bad state for several years.
According to him, “initially, we proposed between N60,000 to N70,000 per day, but what we are generating per day is between N6,000 and N7,000 on the toll. So, it is not to defraud, but a sacrifice.”
To Alfa Abdul-Azeez Ajetunmobi, general secretary of Olambe community area, “this is a self-help project and we are seriously working with contractor to make sure there are no lapses. The contractor is living in the community, so there is no way he can defraud or run-away unless he want to implicate himself.”
 
The Illegality
The award of the contract obviously did not follow due process according to industry analysts. According to one expert, it is difficult to know how they arrive at the cost N300 million for the construction of a 14-kilometer road. Apart from this, the imposition of toll collection by the residents of Matogun-Olambe road is illegal as they have no right whatsoever to do that. Such toll collection can only be imposed on the people of the area by an act of the parliament. The participation of the Chairman of the Local Government Area worsens the situation since it can be interpreted that he sanctioned the entire illegal process.