In a reported move to enhance infrastructure development in Lagos, Governor Babajide Sanwo-Olu has officially signed N134.815 billion bonds. The funds will reportedly be allocated to key projects aimed at transforming the city.
The signing ceremony took place on Tuesday, showcasing the government’s commitment to delivering essential infrastructure in Lagos.
During the ceremony, Governor Sanwo-Olu highlighted one of the major projects that will be initiated as a result of this bond issuance. The plan involves the overhaul of 33 public schools located in the Tolu Complex area of Ajegunle (Olodi Apapa).
“The state has issued a 10-year tenure bond valued at N115 billion, carrying an interest rate of 15.25 percent. This is our fourth issuance under the Debt and Hybrid Issuance Programme, duly approved by the State House of Assembly,” stated Governor Sanwo-Olu.
Furthermore, the governor explained that the second instrument being utilized is a seven-year tenure bond worth N19.815 billion, offering a fixed return of 14.675 percent. He added that the bond, known as the Forward-Ijarah Lease Sukuk, would mature by 2030.
Governor Sanwo-Olu emphasized that this achievement represented a significant milestone for his administration in delivering the necessary infrastructure to drive economic growth throughout the state.
He further stated that the two bond issuances would provide the necessary impetus for his government to advance its development agenda in critical sectors of Lagos.
“The projects encompass a comprehensive overhaul of 33 public schools in the Tolu area of Ajegunle and ongoing road infrastructure projects on the Lekki-Epe corridor,” explained the governor.
He similarly said “A substantial portion of the funds will be allocated to drainage works, as well as sea and lagoon embankment projects, aimed at protecting the environment from climate-related issues.”
Governor Sanwo-Olu also highlighted that a portion of the proceeds will be allocated to the construction of the Infectious Disease Research Centre at the Infectious Disease Hospital in Yaba.
“We are also focusing on enhancing our agricultural capability to ensure food security for our people. Part of the proceeds will be directed towards constructing major food markets,” he added.
Rabiu Olowo, the Commissioner for Finance, emphasized that these bond issuances demonstrate Lagos’ status as a ‘Category A Issuer’ and affirm investors’ trust in the state’s ability to effectively utilize the proceeds for government projects.
Chapel Hill Denham, the lead issuing house, reported that Lagos successfully raised the N135 billion bond within a mere 14 days of issuance. This oversubscription indicates the high level of confidence investors have in the state’s potential for growth and development.
Meanwhile, David Hundeyin, a popular investigative journalist in Nigeria, had in a recent tweet accused the ‘President-elect’, Asiwaju Bola Ahmed Tinubu of ordering the Lagos State Governor, Babajide Sanwo-Olu to raise N100b to approach the Supreme Court justices who are to deliver a judgement on the suit seeking to disqualify him for double nomination on Friday.
