Lagos Assembly begins consideration of ₦200bn bond issuance request

By Imisioluwa Afunmiso

The Lagos State House of Assembly on Tuesday has commenced consideration of two requests from the Lagos State Government seeking legislative approval for infrastructure financing initiatives, including participation in a funding programme and the issuance of a ₦200 billion bond.

The requests, contained in separate letters from the Commissioner for Finance, Mr. Abayomi Oluyomi, were read during plenary by the Clerk of the House, Mrs. Adenike Oshinowo.

Following the presentation, Speaker of the House, Rt. Hon. Mudashiru Obasa, referred the requests 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.

One of the requests seeks the Assembly’s resolution authorising Lagos State’s participation in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme under the Lagos State Infrastructure Finance Fund.

According to the Commissioner, the initiative is designed to provide immediate liquidity for the state by leveraging future FAAC allocations to finance critical infrastructure and capital projects.

Oluyomi explained that participation in the programme would enable Lagos State to access an estimated $17 million in third-party funding for developmental projects.

He noted that the House’s approval is a prerequisite for the state to participate in the programme and implement key infrastructure projects across Lagos.

In a separate request, the Commissioner sought legislative approval for the state’s proposed ₦200 billion Series V bond issuance under its existing ₦1 trillion Debt and Hybrid Instruments Issuance Programme.

He stated that Lagos has consistently utilised the debt capital market to raise funds for strategic infrastructure and social development projects aimed at driving economic growth and improving public services.

According to him, proceeds from the proposed bond would finance 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 critical infrastructure across the state.

Oluyomi urged lawmakers to approve the resolutions to enable the government proceed with the necessary arrangements for accessing the capital market.

He assured the Assembly that the state government remains committed to prudent financial management and sustainable infrastructure development.

The outcome of the committee’s review is expected to determine the next stage of the legislative process before the requests are considered for final approval by the House.