LASG seeks assembly backing for N200bn bond, $17m funding

Lagos State Governor Babajide Sanwo-Olu is seeking approval from the Lagos State House of Assembly to raise N200 billion through a bond issuance and secure approximately $17 million in infrastructure financing. These financial measures are intended to fund critical projects before the governor's current term concludes in about 10 months.

The state government's requests were formally presented through letters from the Commissioner for Finance, Abayomi Oluyomi, to the Assembly. Speaker Mudashiru Obasa has directed the Joint Committee on Economic Planning and Budget and the Committee on Finance to scrutinize both proposals and report back. The Assembly is expected to review the requests by Thursday.

One request involves Lagos' participation in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme. This initiative aims to provide immediate liquidity by leveraging future FAAC allocations to finance infrastructure and capital projects, potentially accessing about $17 million in third-party funding. The second request seeks authorization to issue a N200 billion Series V bond as part of the state's N1 trillion Debt and Hybrid Instruments Issuance Programme.

Proceeds from the proposed bond issuance are earmarked for priority projects such as the New Massey Children’s Hospital, Lagos Island General Hospital, the Lagos Rail Mass Transit Line, and the Omu Creek Bridge. Governor Sanwo-Olu's administration assures the Assembly of its commitment to prudent financial management and sustainable infrastructure development as it seeks to advance these key initiatives.