Lagos to Raise N75bn Bond for Development
The Lagos State Government has finalised arrangements with both foreign and local investors towards raising a N75 billion bond for the infrastructural development of the state. The state Commissioner for Finance, Mr. Rotimi Oyekan, who disclosed this in Ikeja yesterday said the amount would be the first tranche expected to be released this year.
Oyekan, who spoke at the a ministerial briefing to mark the first anniversary of Governor Babatunde Fashola, revealed that the paper work on the proposed bond is almost completed with indications of interest from both local and foreing investors. He explained that when ready, “the infrastructural development bond would undoubtedly assist in changing the face of Lagos state and improve drastically the infrastructural terrain of a mega city status like Lagos. “This N75 billion infrastructural development package to be issued in 2008 is just the first phase of the intended infrastructural development programme slated for the state in the next three years,” the commissioner explained, adding that the discussion for issuance of the bond was started by former governor Bola Tinubu.
He also disclosed that the internally generated revenue of the state government has improved from the N6 billion it was netting as at May 2007 to N10 billion monthly.
Oyekan however added that the state was targeting N15 billion as monthly revenue considering the on-going revenue drive and publicity embarked upon by the autonomous Lagos Internal Revenue Service (LIRS). Noting that the amount was still too far from target, Oyekan pointed that the 2008 budget was on high impact infrastructural capital project on which 60 per cent of the budget is expected to be expended, explaining, “For effective implementation of the budget, a whole array of new financial methods is being explored to ensure a high percentage realization of the budget.”
He however disclosed that his ministry was building a public finance model to span from 2008 to 2023 to ensure that the state government financial planning becomes reliable and stable at all times, adding that an accounting consulting firm, Messrs Price Water House Coopers was already working on the initiative. On the Land Use Charge [LUC], Oyekan disclosed that the governor has mandated a consulting firm to perfect and complete the enumeration and assessment of properties in the different local governments so as to enhance uniformity and efficient collection of revenue used in providing basic amenities in all local
government areas of the state.
He further said that the state had motivated and empowered the consultants with tools to facilitate
efficient and effective data collation for revenue generation.
NSE Closing Figures
More Business Reports...
Visit Our Business Events Board»
Post Your Business Event on Our Board»
|
