Lagos Assembly okays N500bn bond

By Lanre Adesanya

The Lagos State House of Assembly at its Plenary on Tuesday have approved the issuance of 2016-2019 N500 billion programme 3 bonds for the State.

It would be recalled that the House at its plenary Session of Monday, 29th August, 2016 set up a 6-Man Ad Hoc Committee to consider the request of the State Governor, Mr. Akinwunmi Ambode on the approval for issuance of Lagos State 2016-2019 N500bn Programme 3 bonds.

The 6-Man Adhoc Committee chaired by Hon. Oluyinka Ogundimu presented the report, having considered the submissions of the invited State officials.

 According to Ogundimu, the Commissioner for Finance, Mr. Mustapha Akinkunmi had stated that bond is the cheapest source of borrowing, considering the high interest rate on bank loans and the recent economic recession and to the Committee that the bond will stimulate and boost state economy, thereby attracting direct investments, while the payment of the bond will be sourced from the 23%Internally Generated Revenue and Federal transfers.

The lawmaker also note that the Commissioner for Economic Planning and Budget, Mr. Akinyemi Ashade at the parley with ad hoc committee, emphasized that N43.298bn was approved by the House in the Y2016 Appropriation Law as bond and this has been captured in the N500bn Bond request.

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He noted that the State Government has plan to boost Internally Generated Revenue (IGR) of the State.

The Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem expatiated that the request for the approval of N500bn programme 3 Bonds is in consonance with Section II (2) of the Lagos State Bonds, Notes and other Securities Issuance Law, 2008.

He also maintained that  sourcing money for the repayment of bond will be predicated on the Internally Generated Revenue (IGR) and the infrastructural development targeted will alleviate burden of the people.

The robust contributions of the trio and other explanation was keenly considered and seen to be in the interest of further enhancing the finances of the State, geared towards achieving infrastructural growth in line with the megacity status of the State.

To this end, the Speaker Rt. Hon. Mudashiru Obasa recommended that “the State Executive Council is hereby authorized to do all that maybe required in ensuring the successful execution of the Bond issuance programme.”