ABUJA, July 22 – The Lagos State Government has asked the State House of Assembly to approve a $131 million bond to fund major infrastructure projects, including hospitals, rail transport and road infrastructure across the state.
The request, presented by Commissioner for Finance Abayomi Oluyomi during Tuesday’s plenary, forms part of the state’s larger debt and hybrid instruments issuance programme. According to the government, the proposed Series V bond will finance projects such as the New Massey Children’s Hospital, Lagos Island General Hospital, the Lagos Rail Mass Transit network, Omu Creek Bridge and other priority capital projects.
In a separate request, the state also sought legislative approval to participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme under the Lagos State Infrastructure Finance Fund. The programme would allow the state to use future FAAC allocations to access about $17 million in third-party funding, providing immediate liquidity for infrastructure development.
Oluyomi said participation requires a formal resolution from the House of Assembly and assured lawmakers that the government would maintain prudent financial management while delivering the planned projects.
Following the presentation, Speaker Mudashiru Obasa referred both requests to the Joint Committee on Economic Planning and Budget and the Committee on Finance for further review, with a report expected on Thursday.
Lagos has remained one of Nigeria’s most active issuers in the domestic debt market. Since becoming the country’s first state to issue a bond in 2002, it has repeatedly raised funds through the capital market to finance infrastructure, with previous bond programmes either fully repaid or still performing.
The latest proposal comes as work continues on the Lagos Rail Mass Transit network. The Blue Line is being extended to Okokomaiko, while construction is also progressing on the final phase of the Red Line to Marina.
Meanwhile, preparations are underway for the 68-kilometre Green Line linking Marina to the Lekki Free Zone, a project valued at about $3 billion.
