Lagos State House of Assembly has granted the request of the state governor, Mr Babajide Sanwo-Olu, for the conversion of Lekki Concession Company Limited, (LCC) to a full government-owned firm.
It would be recalled that the Assembly received a request from the executive arm on Monday June 21, 2021 and it was committed to the committee on finance for further deliberation.
In his presentation, chairman, committee on finance, Rotimi Olowo, posited that upon the buy-out of all the shareholdings interest of the Lekki Concession Company Limited, LCC by the state; Lagos State government became the subsisting shareholders of LCC with 75 per cent shareholding and the Office of Public Private Partnerships, shareholding 25 per cent respectively.
He stated in the report that the original $53.9 million loan obligation from a private sector facility, AFDB had been resolved after series of engagement between AFDB, LCC and the state government to convert the loan to a public sector facility with the benefit of a considerable reduction in interest charges of 1.02 per cent of $1.12million bi-annual as against the 4.12 per cent of $2.746million per bi annual thus giving a savings of $1.16million bi-annual or $3.24million per annum.
The House therefore granted the executive the approval to convert the AFDB loan to the public sector loan backed up by sovereign federal government guarantee on behalf of the state government as well as; authorize 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 Lagos State Government statutory allocations.