Lagos Assembly Approves Full Takeover Of LCC By State

The Lagos house of assembly has approved the request by the
state to assume full ownership of Lekki Concession Company (LCC)
Ltd, a privately-owned company.

Babajide Sanwo-Olu, the governor, had sent the request to the
assembly on June 22 and was referred to the committee on finance to
deliberate on.

The assembly made the resolution to approve the governor’s
request during plenary, on Monday, sequel to the presentation of
the committee on finance.

Rotimi Olowo, chairman of the committee, said the state would
become the subsisting shareholders of LCC with 75 percent
shareholding and the office of Public Private Partnerships having a
shareholding of 25 per cent, respectively.

The lawmaker added that this was made possible following the
buy-out of all the shareholding interest of the company by the
state government.

Olowo further said the original $53.9 million loan obligation
from a private sector facility had been resolved after series of
engagement between Africa Development Bank (AFDB), the company and
the state government.

“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 per cent of $1.12 million biannual,” Olowo
said.

“This is against the 4.12 per cent 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
sovereign 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.”

Olowo noted that the servicing of the loan obligations would
have a maturity till August 2034.

The Lagos house of assembly has approved the request by the
state to assume full ownership of Lekki Concession Company (LCC)
Ltd, a privately-owned company.

Babajide Sanwo-Olu, the governor, had sent the request to the
assembly on June 22 and was referred to the committee on finance to
deliberate on.

The assembly made the resolution to approve the governor’s
request during plenary, on Monday, sequel to the presentation of
the committee on finance.

Rotimi Olowo, chairman of the committee, said the state would
become the subsisting shareholders of LCC with 75 percent
shareholding and the office of Public Private Partnerships having a
shareholding of 25 per cent, respectively.

The lawmaker added that this was made possible following the
buy-out of all the shareholding interest of the company by the
state government.

Olowo further said the original $53.9 million loan obligation
from a private sector facility had been resolved after series of
engagement between Africa Development Bank (AFDB), the company and
the state government.

“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 per cent of $1.12 million biannual,” Olowo
said.

“This is against the 4.12 per cent 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
sovereign 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.”

Olowo noted that the servicing of the loan obligations would
have a maturity till August 2034.