- Lagos seeks approval for a N200bn bond
- State also plans to access $17m infrastructure funding
- Funds will support major development projects
Lagos State Governor Babajide Sanwo-Olu has asked the Lagos State House of Assembly to approve plans to raise N200 billion through a bond issuance and secure about $17 million in infrastructure financing to fund major projects before the end of his tenure.
Eko Hot Blog gathered that the requests were conveyed in two separate letters signed by the Commissioner for Finance, Abayomi Oluyomi, and presented during Tuesday’s plenary by the Clerk of the House, Adenike Oshinowo.
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Following the presentation, Speaker Mudashiru Obasa referred both proposals to the Joint Committee on Economic Planning and Budget and the Committee on Finance for detailed consideration, directing the committees to submit their reports on Thursday.
In the first request, the state government sought legislative approval to participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme through the Lagos State Infrastructure Finance Fund.
According to Oluyomi, the initiative is designed to unlock immediate funding by using the state’s expected future FAAC allocations as leverage to finance critical infrastructure and capital development projects.
He explained that the programme would enable Lagos to access approximately $17 million from third-party financiers for strategic investments.
“The programme is designed to provide immediate liquidity for the state by leveraging future FAAC allocations to finance critical infrastructure and capital projects,” the commissioner stated.
He noted that the Assembly’s approval was a mandatory requirement for the state to participate in the financing arrangement and begin implementing the proposed projects.
In a separate letter, the commissioner requested authorisation for the state to issue a N200 billion Series V bond under its existing N1 trillion Debt and Hybrid Instruments Issuance Programme.
Oluyomi said Lagos had consistently relied on the capital market to finance infrastructure and social development initiatives that support economic growth and improve public services.
He disclosed that funds from the proposed bond would be channelled into several priority projects, including the New Massey Children’s Hospital, Lagos Island General Hospital, the Lagos Rail Mass Transit Line, the Omu Creek Bridge, and other strategic infrastructure across the state.
The commissioner urged lawmakers to grant the approvals to allow the government proceed with the planned fundraising.
He also assured the Assembly that the state government would continue to uphold responsible financial management while investing in infrastructure that supports long-term development.
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