Lagos Assembly Granted Approval For Restructuring Of Loan Granted LCC, Not Takeover Of Company Says Chairman Committee On Finance, Olowo

Lagos Assembly Granted Approval For Restructuring Of Loan Granted LCC, Not Takeover Of Company Says Chairman Committee On Finance, Olowo

Olowo

Olowo

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Lagos State House of Assembly has said that the approval granted the Executive arm of government was to convert the $53.9million loan granted Lagos Concessionaire Company (LCC) by Africa Development Bank and three other local banks to a public sector loan.

Chairman house committee on finance Hon Rotimi Olowo (representing shomolu constituency 1) who dropped this hint today while speaking with August24news.com state house correspondent AJAGBE ADEYEMI TESLIM and other media houses at his Alausa office in Lagos said that the clarification on the issue of the loan became necessary in view of reports of some media organizations that the house granted approval for the takeover of LCC by the state government at last week’s reconvened sitting of the house.

He noted that the Lagos state government had since 2014 taken over LCC based on terms of agreement 75% share holding by Lagos state government and 25% by Public, Private, Partners.

Olowo said that the repayment period of the loan was based on the new ownership structure extended to 2034 so as to reduce pressure of repayment of loan on the state government.

According to him, the loan was initially taken as a private sector loan at an interest rate of 4% but it was renegotiated to 1% interest rate as a public sector loan thus requiring approval of the state house of assembly.

Olowo explained further that presently the government owns LCC 100%  adding that the government decided to takeover the company due to its economic advantage in the near future.

He pointed that government also intends to develop infrastructure in the Epe axis of the state considering the future establishment of Dangote Refinery amongst other which is expected to create employment opportunities.

The chairman posited that out of the $53.9million loan, $20.1million with interest rate of $40million has been paid and outstanding loan of $27.5million.

He identified African Development Bank as the bank that granted international aspect of the loan while Zenith, United Bank of Africa and First City Monument Bank granted the local loan.