Lagos Assembly approves Sanwo-Olu’s request for LCC ownership

By Ebunoluwa Sessou

Lagos State House of Assembly, yesterday, granted the request of Governor Babajide Sanwo-Olu for the conversion of the African Development Bank, AfDB, loan by Lekki Concession Company Limited, LCC, a privately owned organisation, to take full ownership of the company.

In his presentation, Chairman of the Committee, Mr. Rotimi Olowo, stated that upon the buy-out of all the shareholdings interest of LCC by the state, the state government becomes the subsisting shareholder of LCC with 75 per cent shareholding, and the Office of Public-Private Partnerships shareholding 25 per cent, respectively.

He further explained in the report that the original $53.9 million loan obligation from a private sector facility, AFDB, had been resolved after series of engagements between the 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 $3.24milliom per annum.

The House, therefore, granted the governor the approval to convert the AFDB loan to the public sector loan backed up by the Federal Government’s 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.

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

Debating on the report before the initial approval, Mr. Gbolahan Yishawu supported that the recommendation was a smart move as the interest rate would not injure what the State was spending on capital expenditure.

In his remarks, Speaker of the House, Mr. Mudashiru Obasa directed the acting Clerk, Mr. Olalekan Onafeko to send a clean copy of the resolution of the House to the Governor.

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