- Lagos Assembly approved a ₦200 billion bond to finance infrastructure projects
- Lawmakers also endorsed the FAAC Receivables Discounting Programme
- The funds will support transport, healthcare and other strategic developments
The Lagos State House of Assembly has approved the state government’s request to raise a ₦200 billion bond and participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme to fund key infrastructure projects across the state.
Eko Hot Blog gathered that the approvals were granted on Thursday after lawmakers adopted the report of the Joint Committee on Economic Planning and Budget and Finance during plenary.
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Presenting the committee’s findings, Chairman of the Joint Committee, Sa’ad Olumoh, said members thoroughly reviewed the executive requests and found them suitable for approval.
Olumoh explained that the Commissioner for Finance, Abayomi Oluyomi, informed the committee that the Federal Government introduced the FAAC Receivables Discounting Programme following a proposal by the Nigeria Governors’ Forum to help states secure funding for infrastructure development.
He said participating states would sign an Irrevocable Standing Payment Order (ISPO), authorising the Accountant-General of the Federation to deduct agreed amounts from their monthly FAAC allocations over an 11-month period.
According to him, the deductions will be paid into a sinking fund managed by the Debt Management Office and domiciled with the Central Bank of Nigeria.
He added that the arrangement would provide Lagos State with immediate funding for priority projects, including legislative quarters and other critical infrastructure.
The committee also endorsed the government’s proposal to issue a ₦200 billion Series V conventional bond under the state’s existing ₦1 trillion Debt and Hybrid Instruments Issuance Programme.
Speaking during the debate, Chairman of the House Committee on Waterfront Infrastructure, Gbolahan Yishawu, described the FAAC facility as an advance funding mechanism under the ISPO framework rather than a conventional loan.
He noted that the programme carries no interest and could improve the state’s financial flexibility, while urging the government to clearly identify projects that would benefit from the funds and ensure transparency in their implementation.
Speaker of the House, Mudashiru Obasa, supported the financing plan, saying responsible borrowing remains necessary to accelerate infrastructure development and meet the state’s growing capital needs.
Obasa clarified that the increase in the proposed bond to ₦200 billion reflected additional funding requirements and assured lawmakers that the utilisation of the funds would remain subject to legislative oversight.
Following deliberations, lawmakers unanimously approved the committee’s recommendations, paving the way for Lagos State to access the financing for major projects, including the New Massey Children’s Hospital, the Lagos Rail Mass Transit Line, Lagos Island General Hospital, Omu Creek Bridge and other strategic infrastructure.
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