The Lagos state House of Assembly has approved the transfer of full ownership of Lekki Concession Company (LCC) to the Lagos state government.
With the approval of Governor Babajide Sanwo-Olu’s request, the state government will now assume full control of operations of the Lekki toll gate.
LCC was originally set upto execute the Lekki toll road Concession project.
The approval was made by the House following a presentation of a report by the House committe on finance during the plenary session on Monday.
The Chairman, Rotimi Olowo (Somolu I) said Lagos would become the subsisting shareholders of LCC with 75 percent; Office of Public Private Partnerships will own 25 percent.
Olowo explained that this was the result of the buy-out of all shareholding interests of the company by the state government.
The $53.9million loan obligation from a private sector facility has been resolved after engagement between Africa Development Bank (AFDB), LCC and Lagos.
The agreement converts the loan to a public sector facility with the benefit of a considerable reduction in interest charges of 1.02 percent of $1.12million biannual.
The lawmaker said this is against the 4.12 percent of $2.746million per bi-annual, with savings of $1.16million bi-annual or $3.24million per annum.
The AFDB loan becomes public sector loan, backed by sovereign Federal Government guarantee on behalf of the Lagos government.
The State will issue a counter guarantee in favour of the Federal Government along with an Irrevocable Standing Payment Order (ISPO) to deduct from its statutory allocation.
Olowo noted that the servicing of the loan obligations would have a maturity till August 2034.
Lagos Speaker, Mudashiru Obasa, directed the Acting Clerk, Olalekan Onafeko, to send a clean copy of the House resolution to Governor Sanwo-Olu.
