The Lagos State Government has asked the State House of Assembly to approve a proposed N200 billion bond issuance to finance critical infrastructure projects, including the Lagos Rail Mass Transit Line, New Massey Children’s Hospital, Lagos Island General Hospital and Omu Creek Bridge.
The request, contained in one of two letters from the commissioner for Finance, Abayomi Oluyomi, was presented during Tuesday’s plenary and read by the clerk of the House, Adenike Oshinowo.
According to the commissioner, the proposed Series V bond is part of the state’s N1 trillion Debt and Hybrid Instruments Issuance Programme and is intended to fund priority capital projects across Lagos.
“The Lagos State House of Assembly on Tuesday received two requests from the state government seeking legislative approval for a proposed N200 billion bond issuance and FAAC-backed initiative to finance infrastructure,” Oluyomi said in the letter.
He said proceeds from the bond would finance projects including the New Massey Children’s Hospital, Lagos Island General Hospital, the Lagos Rail Mass Transit Line, Omu Creek Bridge and other strategic infrastructure initiatives.
In a separate request, the commissioner sought legislative approval for Lagos State to participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme under the Lagos State Infrastructure Finance Fund.
Oluyomi explained that participation in the programme would enable the state to leverage future FAAC allocations to access about $17 million in third-party funding, providing immediate liquidity for infrastructure development and other capital projects.
He noted that participation in the initiative requires a formal resolution of the House of Assembly.
According to him, the approval would support the implementation of critical infrastructure projects aimed at accelerating development across the state.
Oluyomi also assured lawmakers that the state government would maintain prudent financial management while ensuring sustainable infrastructure development in executing the proposed projects.
Following the presentation, Speaker Mudashiru Obasa referred both requests to the House Joint Committee on Economic Planning and Budget and the Committee on Finance for detailed consideration.
The committees were directed to report back to the House on Thursday for further legislative action.
