Oyogist has learned that the Lagos State House of Assembly has approved Gov. Babajide Sanwo-Olu’s request for N85 billion Special Dispensation Bond to help support capital projects in the state.
According to the Chairman, House Committee on Finance, Rotimi Olowo, the project was approved swiftly by the house since it was for the implementation of infrastructure development in the state.
The Lagos lawmaker said that there could not be a better time than now for the state to go for the bond market which he called “Special Dispensation Bond.”
“When you look at our Consolidation Debt Service Account (CDSA), we have about N22 billion and we are talking N101.2 billion in the next two or three years.“It will amount to a lot of pressure on our debt obligation, so what we thought is necessary to quickly access the bond market with the approval of the House so that we can get it at a cheaper rate and it will be for 10 years with two years moratorium.
“What it means is that in the next two years after securing the bond, we will not pay any money. We will not pay the interest and the capital, it will be like a tax holiday. It will relieve the state of the burden of sourcing for money to pay the creditors.
“That means we will have been able to save money worth an average of N1.5 billion in form of seeking fund to be able to make up to 2023,” Olowo said.