The Lagos State House of Assembly has approved the sum of Two Hundred and Fifty Billion Naira, through loan and bonds as requested by the Executive Arm.
The approval of the bond was for the State to address some of the Infrastructural gap in order to prepare the State for a Smart Mega City status which prompted the State to go Capital market for bond and loan to make the Y2019 budget performance 100 percent.
It would be recalled that the House at its Plenary on Tuesday, 19th November, 2019 granted the request of Governor Babjide Sanwo-Olu for the bond.
Presenting the report, Chairman, Finance Committee, Hon. Rotimi Olowo said the House recommended the grant approval for the issuance of 100 Billion Naira bond and 50 Billion Naira syndicated loan facility to the State.
According to the Chairman, the projected financing had been factored into the debt profile analysis as at 31st December, 2019 which shows a total debt profile of ₦ 1.085 Trillion.
Hon. Olowo stated that debt service to revenue ratio is at 25% in 2019 which was below the required threshold of 30% required by Country policy and Institutional Assessment (CPIA) World Bank assessment.
The recommendation was adopted as the resolution of the House.
