This is a press statement...
Lagos State Governor, Mr. Akinwunmi
Ambode on Wednesday clarified the N500bn
Bond Programme approved by the State
House of Assembly, saying that the Bond was
a pool fund that would span over a period of
time and not just for the current
Appropriation year.
The Governor, who spoke to journalists in Abuja, said
that it was pertinent to clarify the Bond Programme
as it had been technically misrepresented in some
section of the media.
Explaining the modalities of the Bond Programme,
Governor Ambode said that the State, since 2007,
has had two Bond Issuance Programme, adding that
the one recently approved by the Assembly was the
third and would run for a period of three to five
years.
He said that for the current Appropriation Year, the
State can only draw N60billion from the pool of
N500billion, saying that the State would draw from
the fund for subsequent years as approved by the
House.
“Before you can actually even appropriate it in your
budget, you need that programme and that
programme was what was approved by the House.
But in the appropriation of 2016, what is in the
Appropriation law for 2016 is just N60billion. So,
it’s from this Programme that we are pulling out this
N60billion. So, for next year’s budget, if the House
approves for instance N80billion as bond, we don’t
need to go back to the House again after they have
approved that budget, you draw from that issuance
programme and take another amount which is
approved for 2017 budget.
“If they approve any amount for 2018 budget, you
take from that pool of N500billion, which can take
the next five to ten years. So it’s just a lump sum
which you now draw down based on the authorization
by the House. That is the technical explanation. It’s
not as if the State wants to go and take another
N500billion, it’s just a requirement by Securities
and Exchange Commission (SEC) so that you follow
the procedure on a yearly basis,” Governor Ambode
said.
The Governor also assured that the N60billion Bond
Programme approved for the current year would be
used to accelerate the aggressive infrastructural
development ongoing in the State.
He said the funds would be channeled towards the
completion of the Ajah Flyover, Abule Egba Flyover,
Pen Cinema Flyover, as well as the construction of
more lay-bys, bus parks, improve health facilities and
the building of more public schools among many other
infrastructural projects.
He said that the financial arrangement of the State is
such that Bond Programmes embarked upon are
easily repayable through Internally Generated
Revenue (IGR), adding, “all we are just doing is to
accelerate development for the future prosperity of
Lagos.”
Governor Ambode also thanked members of the House
of Assembly for approving the Bond, saying that their
actions have also shown their passion and
commitment to see the State make appreciable
progress.
It would be recalled that the Lagos State House of
Assembly on Tuesday approved the sum of N500
billion worth of bond for the State Government
spanning between 2016 and 2019, which according
to them was necessary for the development of the
state and would be repaid through the State’s IGR.
SIGNED
HABIB ARUNA
CHIEF PRESS SECRETARY
SEPTEMBER 8, 2016
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