Lagos News

Lagos Lawmakers Approve Govt’s Takeover Of Lekki Concession Company

Lagos Lawmakers Approve Govt’s Takeover Of Lekki Concession Company

Lawmakers have approved the Lagos State Government request to assume full ownership of Lekki Concession Company (LCC) Limited.

The state’s governor, Babajide Sanwo-Olu, had on June 21 asked the parliament to approve the request for the takeover of LCC.

The House made the resolution after considering the report of its Committee on Finance at Monday’s plenary.

The committee’s Chairman, Rotimi Olowo, who presented the report, said the state would become the subsisting shareholders of LCC with 75 percent shareholding and while the Office of Public-Private-Partnership (PPP) will get 25 percent.

The lawmaker said the $53.9 million loan obligation from a private sector facility had been resolved after series of engagements between the African Development Bank (AfDB), the company and the state government.

He said: “The agreement was to convert the loan to a public sector facility with the benefit of a considerable reduction in interest charges of 1.02 percent of $1.12 million biannual.

“This was against the 4.12 percent of $2.746 million per bi-annual, therefore, giving a savings of $1.16 million bi-annual or $3.24milliom per annum.

“The House, therefore, granted the executive the approval to convert the AfDB loan to the public sector loan backed up by the Federal Government guarantee on behalf of the state government.

“This also authorise the state government to issue a counter-guarantee in favour of the Federal Government along with an Irrevocable Standing Payment Order (ISPO) to deduct from the state’s statutory allocation.”

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