Lagos Governmnet to raise N60bn bond

The Lagos State Government is set to take another N60 billion bond from the capital market to boost Infrastructural development in the State.

The State Commissioner for Finance Mr. Akinyemi Ashade, who disclosed this in Lagos at the debt issuance programme Annual General Meeting, stated that the bond was the first tranche of the N500 billion Bond that was approved by the State House of Assembly, stressing that the Government would draw another N100 Billion bond from same by next year.

Mr. Ashade noted that the huge population of Lagos, that is estimated to be over 24 million people with a growth rate of 3.2 per cent per annum, has to a large extent put pressure on the State’s infrastructure and sustainability thus the need for the government to continuously strive to increase its revenue base to meet the need and aspirations of its citizens.

“The bond series which the State Government started in 2008 has tremendously impacted on the socio-economic

development in the State and positively affected the life of the people,” he stated.

While noting that the N57.5 billion fixed rate programme 1(series 2) bond 2010/2017 will mature next year, Ashade pointed out that the outstanding bonds have recently been restructured making for better management of the debt profile.

Speaking also at the meeting, one of the joint Trustees to the bond Mrs. Tokunbo Ajayi disclosed that the N57.5 billion fixed rate bonds was used for rehabilitation of Alimosho and Ibeju Lekki General Hospitals, development/upgrading of State Health Care Facilities, Rehabilitation and expansion of Harvey road Health Care Centre and provision of Pharmaceutical Inspectorate Unit.

Others projects on which the money was expended include rehabilitation of Funsho Williams Avenue, Ago-Palace Way, reconstruction of Lagos Badagry Expressway, some Lagos Metropolitan Area Transport Authority, water transportation, road rehabilitation and maintenance projects as well as BRT and bus reforms with other rail transportation projects.

While the N80 billion bonds was used to finance the annual investment commitments of the State specified in the State capital budget which include but not limited to construction of Admiralty Way, Lekki/ Toll link bridge, Dualization and improvement of Isheri- Olofin- Iba Ojo LASU Road.

The N87.5 billion fixed-rate bond, which was the last to be discussed at the AGM, was spent on more road-reconstruction projects at Mushin-Isolo road, Ijegun-Ishasi Isheri Osun road in Ojo LGA and Lagos- Badagry Dual Carriage way amongst others.

In addition, Adiyan Waterworks Phase II, Lagos Rail Mass Transit Project (Blue Rail), Ayinke House and General Hospital Ikeja are being upgraded as well as Waterfront infrastructural development which also benefited from the bond.