The Lagos State Government has asked the 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 development projects before the end of Governor Babajide Sanwo-Olu’s administration.
The requests were presented to lawmakers on Tuesday through two separate letters signed by the Commissioner for Finance, Abayomi Oluyomi, and read during plenary by the Clerk of the House, Adenike Oshinowo.
Following the presentation, Speaker Mudashiru Obasa referred both requests to the House Committees on Economic Planning and Budget, and Finance for further consideration, directing them to submit their findings on Thursday.
In one of the requests, the government sought legislative approval to participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme under the Lagos State Infrastructure Finance Fund.
According to the government, the initiative is designed to provide immediate funding by leveraging the state’s future FAAC allocations, allowing Lagos to access approximately $17 million in third-party financing for critical infrastructure and capital projects.
Oluyomi explained that the programme requires a formal resolution from the House before implementation can begin, noting that the financing would support the state’s infrastructure development agenda.
In a separate request, the commissioner asked lawmakers to approve the issuance of a N200 billion Series V bond under Lagos State’s N1 trillion Debt and Hybrid Instruments Issuance Programme.
He stated that the state has consistently relied on the debt capital market to finance infrastructure and social development projects that promote economic growth.
The proposed bond proceeds, according to the government, will 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 strategic infrastructure projects across the state.
Oluyomi urged the Assembly to approve both requests to enable the government to proceed with the necessary funding arrangements, while reaffirming the state’s commitment to responsible financial management and sustainable infrastructure development.
