Lagos to issue N60bn from bond programme in Q4

Lagos to issue N60bn from bond programme in Q4

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Lagos state plans to issue N60 billion this year out of a N500 billion bond programme to be issued over the next three to five years.
The State government had, in April, agreed to pay off holders of an outstanding N167.5 billion bond before maturity to cut its interest payments after a plunge in oil prices slashed government revenues.
The new bond, which the state plans to issue, will be channelled to infrastructure projects.
“The N60 billion bonds approved for the current year would be used to accelerate the aggressive infrastructure development ongoing in the state,” Governor Ambode said.
Lagos state is home to the commercial hub of Africa’s most populous nation, a sprawling city of more than 21 million people, which is in dire need of infrastructure upgrades.
Lagos is the first state to announce a bond issue since the country slipped into recession in the second quarter. It also generates about 70 per cent of its revenue internally from taxes. Most other states depend on their share of federal oil revenues.
“The financial arrangement of the state is such that bond programmes embarked upon are easily repayable through internally generated revenue,” Ambode said.

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