Lekki-Epe Road: LASG Restructures LCC Loan, Saves N10bn

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  • Secures 21.16% loan reduction from international leaders

By Gboyega Akinsanmi

The Lagos State Government on Wednesday disclosed that it had effectively restructured N25.3 billion credit facility, which local and international lenders granted it to buy back the Lekki Concession Company (LCC), the concessionaire of the Lekki-Epe expressway.

Also, the state government revealed that it was able to secure 21.16 percent reduction through the restructuring of the credit facility, which the Securities and Exchange Commission (SEC) granted it in November 2013 during the administration of former Governor Babatunde Fashola (SAN).

The state government disclosed the credit restructuring in a statement by its Commissioner for Information & Strategy, Mr. Steve Ayorinde, who noted that the State Executive Council had finally approved the deal.

Ayorinde explained that the administration of Governor Akinwunmi Ambode “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 reduction to the State.”

Consequently, the commissioner disclosed that a whopping sum of N3.15 billion had been saved from the restructuring of the credit facility the Fashola administration obtained about one year and six months to the end of his second term.

He said that 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 N8.7 billion for the state government.”

Further details later