State House of Assembly Backs Funding Scheme to Accelerate Development Across Lagos

The Lagos State House of Assembly on Thursday approved the state government's request to issue a N200bn bond and participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme. The approvals followed the adoption of the Joint Committee on Economic Planning and Budget and Finance’s report during plenary.

Chairman Sa’ad Olumoh presented the report, stating that the panel examined the executive's requests and found them suitable for legislative approval. Commissioner Abayomi Oluyomi informed the committee about the Federal Government's initiative to introduce the FAAC Receivables Discounting Programme as part of a proposal by the Nigeria Governors’ Forum.

According to reporting by Punch Nigeria - Sports

FAAC Facility and Bond Issuance

The FAAC facility, described as an advance-payment arrangement under the ISPO framework, will provide Lagos with immediate liquidity to finance priority capital projects. The state intends to use these funds for projects like legislative quarters, the New Massey Children’s Hospital, the Lagos Rail Mass Transit Line, and more.

State Debt Issuance Programme

The House also approved a Series V conventional bond issuance under the state's existing N1tn Debt and Hybrid Instruments Issuance Programme. The increase in the proposed bond to N200bn reflects additional funding requirements.

Lawmakers unanimously adopted the committee’s recommendations with amendments, authorising the state government to participate in both schemes.

Frequently Asked Questions

How much will these projects cost?

The N200bn bond and FAAC financing scheme are aimed at covering critical infrastructure projects across Lagos. Examples include the New Massey Children’s Hospital, Lagos Rail Mass Transit Line, and others.

Who approved this funding plan?

The approval came from the Lagos State House of Assembly following recommendations by the Joint Committee on Economic Planning and Budget and Finance.

When will these projects start?

The funding approvals are subject to legislative oversight, but a timeline for specific project starts was not mentioned in the report.