Lagos Restructures LCC Loan Facility; Says Approach Saves N10Bn

Posted by African Examiner Featured, Lagos, Latest Headlines, News Wednesday, June 29th, 2016

LAGOS, NIGERIA (AFRICAN EXAMINER) – The Lagos State Executive Council has approved the restructuring of the Lekki Concession Company (LCC) Loan Facility provided by local and international lenders.

The State Government in a statement issued Wednesday by the Commissioner for Information and Strategy, Mr. Steve Ayorinde, informed that it has paid a total of N9.8billion in full and final settlement of LCC’s indebtedness to its international lender, which granted a 21.16 per cent haircut (reduction) to the State.

He confirmed as a result of this, the sum of N3.15billion was saved.

The Commissioner added in addition, local lenders, whose interest rate was 18.5 per cent at the consummation of the facility, offered a 12 per cent haircut and also fully paid with a restructured loan at 13.5 per cent, thereby creating a savings of N8.7billion for the Government.

Ayorinde also restated the State Government’s commitment to continue to deploy appropriate public finance management principles to ensure adequate provision of infrastructure to all Lagosians.

Meanwhile, Lagos residents have been urged to pay their taxes as at when due.

The State’s Commissioner for Finance, Dr. Mustapha Akinkunmi, assured that if citizens cooperate in this regard, more facilities would be provided by government “through the tax payers’ obligation to government”.