Skip to main content

Ambode clarifies N500 billion bond approved by Assembly

Gov. Akinwunmi Ambode

Gov. Akinwunmi Ambode

Kazeem Ugbodaga

Lagos State Governor, Mr. Akinwunmi Ambode has 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 on Wednesday, 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, 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 could only draw N60 billion from the pool of N500 billion, 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 N60 billion. So, it’s from this Programme that we are pulling out this N60 billion. So, for next year’s budget, if the House approves for instance N80 billion 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 N500 billion, 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 N500 billion, it’s just a requirement by Securities and Exchange Commission (SEC) so that you follow the procedure on a yearly basis,” Ambode said.

The Governor also assured that the N60 billion 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.

Ambode added that the financial arrangement of the State was such that Bond Programmes embarked upon were easily repayable through Internally Generated Revenue (IGR), adding, “all we are just doing is to accelerate development for the future prosperity of Lagos.”

He also thanked members of the House of Assembly for approving the Bond, saying that their actions had 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 Internally Generated Revenue, IGR.

Labels:

Comments

Post a Comment

Popular posts from this blog

Court grants Fani-Kayode N50m bail

Fani-kayode sandwiched by EFCC officials Justice James Tsoho of the Federal High Court Abuja on Thursday granted a N50m bail to former spokesman of the Goodluck Jonathan Campaign Organisation, Chief Femi Fani-Kayode. Fani-Kayode was arraigned by the Economic and Financial Crimes Commission (EFCC) on a five-count charge of money laundering to the tune of N26m. Fani-Kayode is the sole defendant in the fresh charges numbered, FHC/ABJ/CR/140/2016. The EFCC accused the defendant of diverting 26 million Naira allegedly received from the ONSA while Sambo Dasuki was in office. The anti-graft agency also accused him of handling the said N26 million without going through financial institution as required under the Money Laundering Act. The embattled former minister is already facing 17-count charge of money laundering before the Lagos Division of the court, along with a former Finance Minister; Nenadi Usman, Danjuma Yusuf and a firm; Joint Trust Dimension Nigeria Limited. They were charg...
Post a Comment
Read more

Pope not involved in Colombian peace deal- Vatican

Pope Francis Pope Francis has turned down a request to play a role in the peace deal between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC) rebel group. The Vatican in a statement issued on Wednesday in in Vatican City said that an invitation was sent to his Holiness in early August to appoint a representative to participate in the committee that selected the judges for the talks. The statement said that though Pope Francis supported the peace process, he, however, reiterated that he would not get involved in Colombian peace deal. It said that Pope was praying for the enlightenment of the hearts and minds of those who were called to promote the common good of the Colombian nation. A deal was announced last week, putting an end to five decades of internal conflict between government forces and the FARC rebels. The agreement, which needed to be ratified through a referendum in Oct. 2, would entail setting up a special court to grant amnesties or pu...
Post a Comment
Read more

Fall of Assad is a Blow to Russia's Prestige

The potential fall of Syrian President Bashar al-Assad, a long-standing ally of Russia, would mark a turning point in Moscow’s global influence, particularly in the Middle East. Steve Rosenberg’s analysis underscores the profound implications for Russia, which has invested heavily—both militarily and politically—in ensuring Assad’s survival over the past decade. This article delves into why Assad’s downfall would strike at the core of Russian prestige and what it could mean for the broader geopolitical landscape. Russia's Strategic Commitment to Syria Since the outbreak of the Syrian civil war in 2011, Russia has been a staunch supporter of Assad's regime. In 2015, Moscow launched a military intervention that proved decisive in stabilizing Assad’s hold on power. This intervention solidified Russia's role as a key power broker in the Middle East and demonstrated its willingness to project military power far beyond its borders. Syria is not just an ally for Russia; it is a...
Post a Comment
Read more