The Federal Executive Council (FEC) has approved a $200 million loan for Lagos State government to enable it complete some ongoing projects in the state.
The Minister of Power, Works and Housing, Babatunde Fashola and the Minister of Information and Culture, Alhaji Lai Mohammed briefed State House correspondents at the end of the meeting presided over by President Muhammadu Buhari.
The Minister of Information said that the loan would enable Lagos State Government complete some of its ambitious projects, such as the 61km 10-lane expressway from Lagos to Badagry that would also include 27-kilometre light roads.
He said the facility would also enable the state government to rehabilitate the inner roads in Apapa in addition to some other major ongoing works.
Minister of Power, Works and Housing, explained that the loan was not entirely new as part of it had been collected during the past administration.
Fashola said that the delay in approving the balance was due to political differences between the Federal Government and Lagos State at the time.
According to him the loan was approved in 2010 by the Federal Government with an initial moratorium of 10 years and a repayment period of 40 years.
Fashola said that the rebasing of the Nigerian economy which made it the largest in Africa had altered the terms and conditions of the loan, reducing the moratorium period to only five years, repayment period to 25 years and an imposition of 2.5 per cent interest rate.