x

EFCC grills NIPC CEO for nine hours

The Lagos State House of Assembly has granted the request of the State Governor, Mr Babajide Sanwo-Olu, for the state government to assume full ownership of the privately-owned Lekki Concession Company Limited (LCC).

This follows the Executive’s request received by the lawmakers on June 21 and the subsequent directive to the House Committee on Finance to further look into it and report its findings to the House.

Six weeks after the mandate was given, the House Committee on Finance led by Rotimi Olowo submitted its report to the lawmakers.

Giving his presentation on Monday, Olowo explained that upon the buy-out of all the shareholdings interest of LCC by the state, the government has become the subsisting shareholders of the company with 75% shareholding while the Office of Public-Private Partnerships was left with the remaining 25% shareholding.

According to him, the original $53.9 million loan obligation from a private sector facility – the African Development Bank (AFDB) had been resolved after series of engagements between the bank, LCC, and the state government.

This was to convert the loan to a public sector facility with the benefit of a considerable reduction in interest charges of 1.02% of $1.12 million bi-annual, as against the 4.12% of $2.746 million per bi-annual, thus giving a savings of $1.16 million bi-annual or $3.24 million per annum.

At the end of Olowo’s presentation, the House granted the executive the approval to convert the AFDB loan to the public sector loan, backed up by a sovereign Federal Government guarantee on behalf of the state government.

It also authorised the state government to issue a counter-guarantee in favour of the Federal Government along with an Irrevocable Standing Payment Order (ISPO) to deduct from Lagos State Government statutory allocations.

According to the report, the servicing of the loan obligations will be a maturity till August 2034.

Contributing to a debate on the report, a member of the House, Gbolahan Yishawu, supported the recommendation which he described as a smart move.

He believes the interest rate will not affect what the state is spending on capital expenditure. Rather, it will reduce the interest risk and rate by moving the loan from the private to the public sector.

Another lawmaker, Abiodun Tobun, on his part, said saving 3.1% in interest rate difference would further reduce the burden on the state government and encourage the savings to be used to develop other sectors of the economy.

For his colleague, Femi Saheed, the restructuring of the loan is an indication of transparency in the state financing and gives add-on flexibility for the additional years granted for the repayment of the loan.

He deemed the request a standard financial procedure practised all over the world.

The Speaker of the House, Mudashiru Obasa, has directed the acting Clerk of the House, Olalekan Onafeko, to send a clean copy of the resolution of the lawmakers to the governor.

Hot this week

U.S. Advocacy Groups Reject Tinubu’s IPOB–Boko Haram Comparison, Demand Kanu’s Release

By Achadu Gabriel, KadunaThree U.S.-based human rights and self-determination...

Anambra Community to Bury Traditional Ruler October 9

The Oko community in Orumba North Local Government Area...

Good Road Network Attracting Investors to FCT – Wike

... Investors to Replicate Dubai City Walk in AbujaBy...

Emir of Zazzau Faces Two Defamation Suits Over Radio Interview

...Court to Hear Case November 4By Achadu Gabriel, KadunaThe...

Nigeria @ 65: Wike Assures Abuja Residents of First Class Infrastructure

By Joyce Remi-BabayejuAs Nigeria marks 69 , the FCT...

Bishop Adegbite Names Fintiri as Most Pilgrim Friendly Governor

By Joyce Remi-BabayejuThe Executive Secretary of the Nigerian...

Clean Up Abuja: Wike Reiterates Commitment to Waste Management

By Joyce Remi-BabayejuThe FCT Minister, Barr. Nysome...

Good Road Network Attracting Investors to FCT – Wike

... Investors to Replicate Dubai City Walk in AbujaBy...

Emir of Zazzau Faces Two Defamation Suits Over Radio Interview

...Court to Hear Case November 4By Achadu Gabriel, KadunaThe...

Tinubu, Mutfwang, Akpabio, and Other Dignitaries Honour APC Chairman’s Mother at Jos Funeral

By Israel Adamu, JosPresident Bola Ahmed Tinubu, Plateau State...

How l became a consultant inside Kaduna Prison – Journalist Idibia

MY STORYBy Idibia GabrielIt is Interesting but hazardous to...

RCCG Pastor Urges Men to Embrace Physical Exercise for Greater Productivity

By Achadu Gabriel, KadunaThe Zonal Pastor of the Redeemed...

“How I Became a Consultant Inside Kaduna Prison” — Journalist Idibia Recounts Ordeal

By Idibia Gabriel, KadunaJournalist Idibia Gabriel has shared a...

Related Articles

Popular Categories

spot_imgspot_img