By Ebunoluwa Sessou

Lagos State House of Assembly said, yesterday, that the approval granted to the executive arm was to convert the $53.9 million loan granted Lagos Concessionaire Company, LCC, by the Africa Development Bank and three other local banks, to a public sector loan, and not take over.

This was sequel to the report earlier carried in the dailies that the Lagos Assembly approved the state government to take over the concessionaire company.

Speaking to newsmen, the Chairman, House Committee on Finance, Mr. Rotimi Olowo, representing Shomolu Constituency 1, clarified that the state government had, since 2014, taken over LCC, based on terms of agreement of 75 per cent shareholding by Lagos State government and 25 per cent by public, private partners.

READ ALSO: Lagos Assembly clarifies approval of $53.9m LCC loan conversion

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

He said: “Out of the $53.9million loan, $20.1million with an interest rate of $40million has been paid and an outstanding loan of $27.5million.”

Vanguard News Nigeria