Lagos, NGX to raise capital to fund infrastructure projects in the state

The Lagos State Governor, Babajide Sanwo-Olu, has indicated the state’s interest in collaborating with the Nigerian Exchange Limited (NGX) as it will explore capital raising through the exchange to fund infrastructure projects through equities, Green, Sukuk and Blue Bonds.

The remark was made by Sanwo-Olu, when the board and management of NGX led by its Chief Executive Officer, Mr Temi Popoola, paid him a courtesy visit at Governor’s office, on Thursday, February 10, 2022.

Other board members of NGX present at the meeting with the Lagos State Governor include Mr. Kamarudeen Oladosu, Mr. Seyi Osunkeye, and Mr. Yomi Adeyemi.

According to NAN, Sanwo-Olu expressed confidence in the opportunities available in the capital market and indicated an interest in deepening synergies between the state and the NGX.

What the CEO of NGX said during the visit

Popoola, in his statement, said, “At NGX, we are eager to reaffirm our commitment to collaborating with the Lagos State Government on its infrastructure development drive through our robust platform available to fund strategic objectives.

“This is particularly important to us given the critical position Lagos state occupies as the Centre of Excellence and the major economic hub in Nigeria and Sub-Saharan Africa.

“NGX has always been a strong collaborator through which the state accesses long-term developmental funding from the capital market evidenced by the N224.54 billion Lagos State Bonds listed on NGX, cumulatively the largest subnational bond listed on the NGX platform.

“We, therefore, look forward to exploring more opportunities especially in infrastructure financing, environmental and climate bonds, and capacity building.’’

The NGX boss pointed out that capital market stakeholders will continue to look forward to outcomes from the series of strategic engagements the NGX has facilitated with key players across the public and private sectors.

What you should know

• In a related development, recall that in December 2021, Governor Sanwo-Olu signed a N137.3 billion 10-year bond to finance key infrastructural projects in the state.
• The debt instrument which is at 13%, is under the N500 billion fourth debt series expected to run between 2021 and 2031.
• The governor who at the signing ceremony in the presence of the 24 issuing houses and 8 trustees among others, said the bond was to finance key infrastructure projects, on roads and healthcare and listed the projects to include the Lagos-Badagry Expressway, Lekki Regional Road, Rehabilitation of Ijeododo road and Rehabilitation of the alternative route to Admiralty Circle Toll Plaza.