Lagos Government Saves Over N10billion From Loan Restructuring

Lagos State Executive Council, on Wednesday, June 29, said it has approved the restructuring of the Lekki Concession Company (LCC) Loan Facility provided by local and international lenders, saving over N10 billion in the process.

In a statement issued by the Commissioner for Information and Strategy, Mr Steve Ayorinde, the State Government said that it has paid a total of N9.8 billion 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.

The commissioner said as a result, the sum of N3.15billion was saved, stating 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 N8.7billion for the government.

Ayorinde also reiterated the state government’s commitment to continue to deploy appropriate public finance management principles to ensure adequate provision of infrastructure to all Lagosians.

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