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.