As Sanwo-Olu commissions 9 roads, 1 bridge, Opebi-Ojota link bridge project takes off January
Lagos state government appears to have met all statutory instruments that will facilitate the raising of N137.328 billion bond from the capital market to deliver key infrastructure in critical sectors of the economy.
On Monday, the Lagos state governor, Babajide Sanwo-Olu, presided over the ceremony where the state attorney general signed the necessary documents required by the Securities and Exchange Commission (SEC) to facilitate the issuance of 13 percent fixed rate bond, issuing parties and trustees of the funds.
This is the third time Lagos state governor would be issuing a long-tenure bond of 10 years (2021-2031), bringing to a total value of N377.715 billion bond issued from the Lagos State’s Series IV N500 Billion Debt Issuance Programme.
The state set out to raise N125 billion from the capital market but closed the bids with N137.3 billion, following oversubscription.
The development, Sanwo-Olu said, demonstrated a “strong response” from the investing community and testified to confidence of investors in the state’s ability to deliver on its infrastructural and socio-economic developmental objectives, while meeting repayment obligations.
The governor said proceeds from the bond would be used to finance key infrastructure projects in healthcare, environment and road construction, including the 10-km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu, among others.
Sanwo-Olu said the iconic projects for which the funds would be earmarked would contribute to a better quality of living for the residents, while also creating a more enabling environment for commercial and economic activities.
He said: “Lagos once again marks another milestone in the domestic debt capital markets, with the issuance of the largest bond ever by a sub-national government in Nigeria. The signing ceremony finalises the issuance of N137.3 billion bond at 13 percent fixed rate in our Series IV Bond Issuance under the N500 Billion Fourth Debt Issuance Programme.
“We set out to raise up to N125 billion, but we closed the book with bids totalling N137.3 billion. This is a strong response from the investing community to our administration’s debut bond issuance. This humbling achievement is a testament to continued investors’ confidence in the state’s ability to deliver on its infrastructural and socio-economic developmental objectives, and also to meet repayment obligations.
“In line with our vision to build a Greater Lagos, proceeds from this bond will be used to finance infrastructure projects, primarily in roads, environment and healthcare. These projects include 10- km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu. These will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity.”
Sanwo-Olu said there had been multiplier effects in socio-economic activities felt from the previous intervention capital raised justified the cost of investment in critical sectors. He said Lagos had maintained high discipline on the size and pricing of its bonds, noting that the state got the clearance to proceed with the issuance as its coupon of 13 percent yearly fell within the acceptable clearing bid.
The governor disclosed that the issuance process started in April based on the advice of the state’s transaction advisers. With the issuance of the third bond, Sanwo-Olu said the imperative to aggressively drive his administration’s THEMES agenda had been boosted, pledging to deliver more iconic projects that would raise the value of the state’s economy.
The governor commended the Federal Ministry of Finance, SEC, National Pension Commission (PENCOM) and Debt Management Office for supporting the state’s infrastructure drive.
Meanwhile, the Lagos state governor, on Monday, commissioned a network of 9 roads and a bridge in Kosofe Local Government Area of the state, in fulfilment of his administration’s resolve to provide the necessary infrastructure for sustainable development across the state.
During the inauguration of these projects, Sanwo-Olu said the 9 roads with a total length of 2,840 kilometres, including the bridge, which will serve a population of over 300,000 people, within the Soluyi-Araromi-Ifako-Gbagada communities, demonstrated the topmost priority that his government accords the welfare and well-being of the people of Lagos, in line with the vision of a Greater Lagos.
The network of 9 Roads includes Aderemi Akeju Street with Deck on pile Bridge, Okun Street, Femi Kufo Street, Brown Street, Adegbenro/Ganiyat Dawodu Streets, Yetunde Street, Anipole Street and Sosanya Street.
Governor Sanwo-Olu who also expressed commitment to the completion of all ongoing road projects in Kosofe and other parts of Lagos State announced that work would commence in January on the construction of the Opebi-Ojota link road and bridge.
He allayed the fear of the residents of the area, promising that the proposed link road and bridge will not affect their properties as speculated.
He said, “We are going to flag-off the Opebi-Ojota Link Bridge in January. We have awarded the job to Julius Berger and I want to assure you that no house would be demolished. The Right of Way for that road and the link bridge does not have any demolition. It is a swamp and we are going to be doing a bridge. The road and bridge will ease movement from Ikeja to Opebi and Ojota.’’
According to Governor Sanwo-Olu, the newly-completed network of nine roads with a bridge will serve as an alternative route, a by-pass, for motorists within the Soluyi Community to the Third Mainland Bridge and Apapa-Oworonsoki Expressway via the Third Axial underpass.
He said the roads will also address the perennial environmental and infrastructural challenges facing the community, including flooding, as well as “increase property values, help improve quality of life and the productivity of residents. He added that it would reduce maintenance cost on vehicles, and reduce the cost of doing business and earning a livelihood in the area.
He said, “And, in addition to all the benefits I have just outlined — improved transport connectivity, the standard of living, environmental mitigation, and so on — these projects have also directly impacted the community in terms of job creation. I am pleased to note that in delivering these projects, jobs were created for about 380 persons: including engineers, supervisors, and various cadres of artisans.”
The Special Adviser to Governor Sanwo-Olu on Works and Infrastructure, Engr. (Mrs.) Aramide Adeyoye, said the driving force behind the construction of the network of roads with a bridge is to ensure connectivity and reduce the burden and pressure on major arterial roads that link to an integrated intermodal transport system which in turn opens up the local economy.
She said, “The delivery of the network of nine roads and a bridge has helped in improving connectivity while providing multiple bye pass, encourage traffic flow from Diya Street through either: Ajayi Aina / Ibrahim Onashokun / Paul Odulaja / Yetunde Brown / Adegbenro / Ganiyat Dawodu to the Third Axial Underpass or Ayodele Okeowo / Soluyi Road / Femi Kufo / Okun / Aderemi Akeju / Yetunde Brown / Adegbenro / Ganiyat Dawodu to the Third Axial underpass which has considerably helped in reducing traffic gridlocks in the axis.’’
Recently, Governor Babajide Sanwo-Olu commissioned a newly reconstructed network of 3 interconnected roads in the Central Business District (CBD) of the Eti-Osa axis of the state as part of moves to solve major traffic problems and reduce travel time in Victoria Island.
The 3 reconstructed roads which include Adeola Hopewell Street, Idowu Taylor Street and Afribank-Churchgate road, all within the commercial vicinity of Iru-Victoria Island Local Council Development Area (LCDA), were delivered under the urban infrastructure renewal programme of the Sanwo-Olu administration, which seeks to improve vehicular mobility within and around commercial districts in the State