Lagos government has debunked the story making the rounds that the state House of Assembly has okayed the take over of Lekki Concession Company (LCC).
Commissioner for Information and Strategy, Gbenga Omotoso, in a statement yesterday said the government did not make such a request to the House.
“Its request was to convert the African Development Bank loan from a private sector (commercial) loan to a sovereign (public sector) loan, which attracts a lower interest rate. This will enable the company to make some savings. The government, in fact, acquired the full shares/equity of the former owners of the company in 2014. There was no need to take such a request to the House.”
Omotoso said following the Lagos State Government’s full ownership of LCC in December 2014, the loan became eligible for conversion to a sovereign facility with an attendant significant lower interest rate plus 80 basis points and extended tenor.
He said in the recent past, there have been discussions amongst LCC, Lagos State government, AfDB and relevant Federal Government ministries and agencies concerning conversion of the loan to a sovereign facility.