The Lagos State House of Assembly has officially approved the state government’s request to issue a two-hundred-billion-naira bond and participate in the Federation Account Allocation Committee Receivables Discounting Programme to fund major capital developments across the state.

The decision came after lawmakers considered and adopted a detailed report presented during plenary by the Joint Committee on Economic Planning and Budget and Finance, chaired by Sa’ad Olumoh.

The panel confirmed that it had reviewed the executive’s proposals thoroughly alongside state financial officials and determined that the funding frameworks were appropriate for legislative sanction.

The Commissioner for Finance, Abayomi Oluyomi, informed the committee that the FAAC Receivables Discounting Programme was introduced by the Federal Government following a initiative by the Nigeria Governors’ Forum to help states access rapid liquidity for public works.

Under this structure, Lagos State will sign an irrevocable standing payment order that permits the Accountant-General of the Federation to deduct predetermined sums directly from the state’s monthly federal allocations over an eleven-month timeframe. The deducted funds will be paid into a dedicated sinking fund managed by the Debt Management Office and held at the Central Bank of Nigeria.

Lawmakers participating in the debate, including House Committee Chairman on Waterfront Infrastructure Gbolahan Yishawu, emphasized that the FAAC facility operates as an advance-payment structure under the ISPO arrangement rather than standard commercial borrowing.

They noted that the scheme carries no interest burden and offers immediate funding capacity, though they called for transparent tracking to ensure the resources are utilized effectively. Speaker Mudashiru Obasa supported the decision, stating that responsible financial planning is essential to deliver strategic public assets, while confirming that the deployment of all funds will remain subject to strict legislative monitoring.

The legislative approval clears the way for the state government to proceed with raising two hundred billion naira via a Series V conventional bond under its broader one-trillion-naira issuance architecture.

The combined proceeds are targeted at accelerating several key development projects across Lagos State, including the construction of the New Massey Children’s Hospital, upgrades to the Lagos Island General Hospital, expansion of the Lagos Rail Mass Transit system, construction of the Omu Creek Bridge, and the creation of new legislative housing quarters.