Lawmakers Give  Sanwo-Olu Nod  To Acquire Lekki Concession Company

Lagos State House of Assembly has granted the request of the State Governor, Mr Babajide Sanwo-Olu for the conversion of the African Development Bank, AFDB loan Lekki Concession Company Limited (LCC) as a privately owned for the state Government to assume full ownership of the company.

This was contained in a report of the Committee on Finance of the House of Assembly, presented bythe Chairman of the Committee, Hon. Rotimi Olowo.

It would be recalled that the request received from the Executive arm on Monday 21st June, 2021 was committed to Committee on Finance to further look into it and report its findings to the House.

The lawmaker, while presenting the report to his colleagues on Monday, noted 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% shareholding and the Office of Public Private Partnerships, shareholding 25% respectively.

He further 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% of $1.12million bi-annual as against the 4.12% of $2.746million per bi annual thus giving a savings of $1.16million bi-annual or $3.24milliom per annum.

The House 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  same to issue a counter guarantee in favour of the Federal Government along with an irrevocable standing payment order an itrevocable Standing Payment Order, ISPO to deduct from the state’s  statutory allocations.

According to the report, the servicing of the loan obligations would be a maturity till August 2034.