The Lagos State Government has refuted reports that it sought approval from the House of Assembly to take over Lekki Concession Company (LCC).
A statement signed by the state’s Commissioner for Information and Strategy, Mr. Gbenga Omotoso, said: “Reports that the Lagos State House of Assembly has granted the Lagos State Government the go-ahead to take over the Lekki Concession Company are false.
“The government did not make such a request. Its request was to convert the African Development Bank loan from a private sector to a sovereign loan, which attracts a lower interest rate. This will enable the company to make some savings.
It also stated that the sovereign loan conversion will lead to a crash of the applicable interest rate on the facility to circa 1.8 per cent yearly compared to the current interest rate of circa 4.12 per cent yearly and the conversion will increase the tenor of the facility from the current five years to 15 years, which has an impact of spreading the cash flow impact by an additional 10 years.
“One of the requirements stipulated by the Federal Ministry of Finance for the loan conversion is the approval of the Lagos State House of Assembly. This is the approval given by the Lagos State House of Assembly on August 5, 2021, and not an approval for take-over of LCC, as reported,” the statement further stated.
It finally said the state government, after due consultation with all major stakeholders, entered into an amicable settlement option with the shareholders of LCC with a view to bringing the project back on the path of long-term sustainability, acquired the full shares/equity of the previous owners, thereby assuming full ownership of LCC in December, 2014.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lagos NIPR celebrates female chief executives | The Guardian Nigeria News - Nigeria and World NewsThe Chairman of Lagos Nigerian Institute of Public Relations (NIPR), Comfort Nwankwo, has congratulated the recently-appointed chief executives of Guaranty Trust Bank, First City Monument Bank...
Read more »
NACC seeks stronger ties between Nigeria, U.S. | The Guardian Nigeria News - Nigeria and World NewsThe Nigerian- American Chamber of Commerce (NACC) is seeking stronger relationships and empowerment from the commercial section of the United States Embassy through its consulate in Lagos, Nigeria.
Read more »
Improve education beyond rhetoric | The Guardian Nigeria News - Nigeria and World NewsInternational conferences, summits or seminars have their usefulness and advantages. They provide a forum for reasoned discussions, and for positions to be taken on contemporary problems facing nation states....
Read more »
Igbo youths decry alleged lopsided appointments by Buhari | The Guardian Nigeria News - Nigeria and World NewsThe youth wing of the apex Igbo socio-cultural organisation, Ohanaeze Ndigbo, has accused President Muhammadu Buhari of violating the laws guiding the Federal Character Commission...
Read more »
‘Nurses to update professional knowledge’ | The Guardian Nigeria News - Nigeria and World NewsTo meet the increasing demand for effective and efficient nursing care, nurses have been urged to regularly update their professional knowledge.
Read more »