Members of the Lagos State House of Assembly at its Plenary on Tuesday, September 6, 2016, approved the issuance of 2016-2019 N500 billion Programme 3 Bond for the state.
It would be recalled that the House at its plenary session of Monday, 29th August, 2016 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 bilion programme 3 bond.
The 6-man Adhoc Committee headed by the Chiarman of the House Committee on Finance, Hon. Oluyinka Ogundimu presented the report, haven considered the submissions of the invited state officials summoned by the House to explain the reason for the collection of the bond.
According to him, the state Commissioner for Finance, Mr. Mustapha Akinkunmi explained that bond is the cheapest source of borrowing, considering the high interest rate on bank loans and the recent economic recession informing the Committee members 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 percent of the internally generated revenue of the state and Federal transfers to the state.
Similarly, Hon. Ogundimu said that the state Commissioner for Economic Planning and Budget, Mr. Akinyemi Ashade in a cross-examination emphasized that N43.298 billion 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 state 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 Bond is in consonance with Section II (2) of the Lagos State Bonds, Notes and other Securities Issuance Law, 2008. He also stated that e-sourcing money for the repayment of bond will be predicated on the 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 of the House, Rt. Hon. Mudashiru Obasa stated that “the State Executive Council is hereby authorized to do all that maybe required in ensuring the successful execution of the Bond issuance programme.”