The Lagos State House of Assembly has granted the request of Governor Babajide Sanwo-Olu for the conversion of Lekki Concession Company Limited, LCC into privately owned for the State Government to assume full ownership of the company.
Chairman of the Committee, Hon. Rotimi Olowo while presenting the committee’s position explained 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 the company with 75% shareholding and the Office of Public-Private Partnerships, shareholding 25% respectively.
He added that in the report submitted by the committee, the original $53.9 million loan obligation from a private sector facility, AFDB had been resolved after series of engagements 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, 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.