LAGOS - The Lagos State Government has sought for an approval of the State House of Assembly to raise 275 Billion Naira loans through issuance of bonds, notes and other securities.
The executive bill tagged ‘Lagos State Bonds and other securities issuance Bill 2008’ is to give a legal backing for raising the loan.
The bill which was hotly debated by lawmakers was committed to the committee on finance for proper deliberation.
Explaining the concept behind the bill, Hon. Rotimi Olowo said the total 3.5 Billion naira statutory allocation, 1.5 Billion from VAT and the internally generated fund could not be enough to make Lagos a mega city as proposed by the state government. He said the bond is the cheapest way to getting money. Hon
Olowo said the loan would be repaid gradually, stating that there are people interested in investing in Lagos . He cited Dubai as a city which rose by putting in place infrastructure that would attract investors.
Hon. Sino Ogunkoya in his debate said “During Asiwaju Tinubu’s tenure as governor, he raised bond to finance capital projects which have been a blessing for Lagosians “ Hon Ogunkoya added that with the state drive to improve the internally generated fund, there is assurance of repaying the loan on time.
Also speaking, Hon. Babatunde Ogala observed that the bond would make fund available for the state to execute its projects. He said there is an independent trustee which will manage the fund, adding that the fond would also generate interest. Hon. Ogala said Dubai and Singapore turned themselves into hobs, remarking that Singapore developed its tourism potentials by taking advantage of its water front. He said the bill has put in place regulations which will ensure judicious management of the fund.
The chairman House Committee on Finance Hon. Solomon Olamilekan said the Consolidated Debt Services Account would attract interest rate when it is deposited in the Sinking Account. He said the 25 Billion naira bond raised in year 2002 has been paid.
However, the speaker Hon. Adeyemi Ikuforiji, announced that the bill should be committed to the committee on finance for proper scrutiny.
In the same vein, a bill for a law to provide for the imposition of wharf landing fees payable on goods imported into Nigeria and transported into Local Government within Lagos State has been committed to the House Committee on Finance. The speaker Adeyemi Ikuforiji requested for explanation on how the fees would be collected but Hon. Ogala explained that such fees must be paid at the point of entry, saying that the State Government would collect the fees on behalf of the Local Government and there will be a sharing formula..
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