Lagos Will Be Financially Responsible With N115bn Bond Issuance

Lagos State Governor Babajide Sanwo-Olu has signed the N115 billion 10-year 15.25 percent Series 1 Bond issuance due 2033 and the N19. 815 billion seven-year 14.675 percent Fixed Return Forward-Ijarah Lease Sukuk due 2030 under the N1 trillion debt and hybrid issuance, saying his administration would ensure that the funds are well utilised for the development of the state.

Speaking at a brief ceremony held at Lagos House, Ikeja to launch the bond, Governor Sanwo-Olu said the proceeds from the issuance would be used to finance priority projects aimed at improving the state’s infrastructure and fostering economic growth in line with the state’s THEMES Agenda.

He said, ‘’Today is another significant day in Lagos State, with us reaching another milestone in our commitment to deliver infrastructural, economic and societal progress to the people of our great and excellent state. As I renew my mandate in the coming days, these two issuances, which we will be allotted today – will provide the impetus for my administration to further drive our THEMES agenda.

“Proceeds from the Bond and Sukuk will enable various MDAs – including the Ministry of Energy and Mineral Resources, the Ministry of Agriculture, the Office of Drainage and Water Resources – to execute respective projects that have been pre-inspected by the Securities and Exchange Commission (SEC).’’

The governor said the proceeds from these issuances would not only drive infrastructure development, but also stimulate economic growth, foster job creation, and enhance the quality of life for all Lagosians.

He said, “Our objective is to create an environment that attracts local and foreign investors, spurring economic activities that will benefit every citizen of Lagos State.

‘’I am extremely proud of the performance and accomplishments of the Lagos State Finance Team over the last four years. Under the leadership of Mr Rabiu Olowo and the strong support of Mrs Alake Sanusi (permanent secretary, Lagos Debt Management Office) (DMO) and Team DMO, Lagos State has charted (and will continue to chart) new financing frontiers through the issuance of new instruments and the disciplined use of the domestic debt capital markets.’’

Sanwo-Olu applauded the efforts of the Federal Ministry of Finance and Debt Management Office, Nigeria for the feat recorded, saying SEC had been of immense support to the state government.