Lagos State House of Assembly at its Plenary on Tuesday approved the issuance of 2016-2019 N500 Billion Programme 3 bonds for the State.
Commissioner for Finance in the state, Mr Mustapha Akinkunmi, explained that the 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 House at its plenary Session of Monday, August 29, 2016, had 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 N500 Billion Programme 3 bonds.
The 6-Man Adhoc Committee headed by Mr Oluyinka Ogundimu presented its report, having considered the submissions of the invited State officials.
Mr Ogundimu said that the Commissioner for Economic Planning and Budget, Mr Akinyemi Ashade in a cross-examination emphasized that N43.298B was approved by the House in the Y2016 Appropriation Law as Bond and this has been included in the N500b Bond request; moreso the State Government has plan to boost Internally Generated Revenue (IGR) of the State.
The Attorney General and Commissioner for Justice, Mr Adeniji Kazeem during his contribution had advocated that the request for the approval of N500 Billion programme 3 Bonds is in consonance with Section II (2) of the Lagos State Bonds, Notes and other Securities Issuance Law, 2008. He also has stated that e 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 towards achieving infrastructural growth in line with the megacity status of the State.
To this end, the Speaker, Mr 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.”