Lagos Assembly Approves N200bn Bond for Infrastructure

On Thursday, the Lagos State House of Assembly approved the state government's request to issue a N200bn bond and participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme. This decision followed the adoption of the Joint Committee on Economic Planning and Budget and Finance’s report, presented by Chairman Sa’ad Olumoh.

The Commissioner for Finance, Abayomi Oluyomi, informed the committee that the FAAC programme, introduced by the Federal Government, would allow states to access funding for infrastructure development. Under this arrangement, states will authorize the Accountant-General of the Federation to deduct agreed sums from their monthly FAAC allocations over 11 months, which will be managed by the Debt Management Office and held at the Central Bank of Nigeria.

The initiative aims to provide immediate liquidity for priority projects, including legislative quarters. Speaker Mudashiru Obasa supported the borrowing plan, emphasizing responsible borrowing for infrastructure development.

The lawmakers unanimously adopted the committee’s recommendations, allowing the state to proceed with the bond issuance and FAAC programme participation.