Press Releases

Lagos To Register With Security And Exchange Commission (SEC) For Issuance Of N275B Bond

Aug 19, 2008 - Lagos State Government will soon register with the Security and Exchange Commission (SEC) for the issuance of bonds and notes worth N275Billion over the next three years following the signing into law of a bill which authorizes the state to raise funds to that effect by Governor Babatunde Fashola (SAN) on Tuesday.

According to Governor Fashola who spoke during the brief but impressive ceremony which took place at the Governor’s office Alausa, the new law authorizes the state government to raise funds through the issuance of bonds and other securities as a means of responding to critical infrastructural challenges of the people and the state.

Governor Fashola informed that the bond which would be issued in three tranches of N75Billion, N100Billion and N100Billion respectively would be an investor‘s delight.

He explained that the first tranche for N75Billion would be issued next month, adding that the new law also provides a basis for the establishment of the State Debt Insurance Programme and provides a platform for the sustenance of its infrastructure renewal and upgrade.

In Governor Fashola words: “The bond would be an investor’s delight. Coming from our first experience with the first bond issued in the life of the last administration which was most successful and has been fully retired and paid up, we expect that these new bond would also be a huge success”.

The Governor added that his optimism stems from the many best practices which the present administration has put in place.

He added that investment in the bond is further reassuring because its repayment will be dependent not on volatile oil revenue which constitutes the bulk of the proceeds of revenue allocation.

Rather, the Governor said, the repayment will be dependent on the State’s Internally Generated Revenue which is now characterized by the willingness of the citizenry to pay their taxes due to popular buy-in of the people into the programmes and policies of the administration as a result of government’s delivery on promises.

Earlier in his remarks, the Special Adviser to the Governor on Political and Legislative Powers Bureau, Mr Abdullateef Abdul Hakeem said the Lagos State House of Assembly had already made provision in the 2008 appropriation law for the issuance of the bond noting that this accounted for the expeditious manner it was passed unanimously by the House.