The Lagos State government under Governor Babajide Sanwo-Olu has provided a N79 billion credit guarantee to a little known Voda Infrastructure Management Limited, a development company appointed by the state to undertake construction of its two projects,

The projects include Massey Children Hospital and Opebi Link Bridge.

The guarantee is a total of NGN79 billion term loans and bond issuance obtained by Voda for the respective projects from commercial banks and bondholders.

The payment obligations (including coupon, principal repayment and other charges) on the loans and bond issue are backed by irrevocable standing payment orders issued by the state as a first-line monthly deduction from its expenditure accounts domiciled with the banks and IGR accounts respectively.

It is unclear why Lagos State did not issue the bonds directly and use the proceeds to fund the projects. Voda Infrastructure Management Limited led by CEO Akindeji Akinniranye, was registered some 4-years ago in September 2020, according to CAC data.

The Lagos State Government’s gross debt (including contingent liabilities) increased to N2.7 trillion in March 2024, due to adverse exchange rate movement as a high portion of the state’s debt, above 53% is foreign currency (FCY) denominated.

Leverage metrics have as such deteriorated and net debt to total income weakened to 1.8x in 2023 (2022: 1.6x), free cash flow (FCF) coverage of gross debt declined to 23% in 2023 from 36% in 2022, and net interest coverage reduced to 4.8x in 2023 from 6.4x in 2022, due to higher finance charge from the elevated debt.

Lagos state has an ongoing plan to refinance the foreign currency loans with local debt,

“We do not expect this to materialise in the near term as it will have negative consequences on the interest cover and the debt maturity profile,” GCR Ratings said in a note.

https://moneycentral.com.ng/moneycentral-west/article/sanwo-olu-gifts-voda-infrastructure-n79bn-credit-guarantee-as-lagos-debts-hit-n2-7trillion/

Please take your time to read up and see how Lagos is the most corrupt state in Nigeria

Another bold move from Sanwo-Olu.

If only this kind of support could be extended to local businesses struggling to survive.

But then again, we know the importance of infrastructure, so let’s see how this plays out for the people of Lagos.

Chinkoalhaji34:
Another bold move from Sanwo-Olu.

If only this kind of support could be extended to local businesses struggling to survive.

But then again, we know the importance of infrastructure, so let’s see how this plays out for the people of Lagos.

You be irredeemable zombieee

Chinedu we should read how Lagos is the most corrupt state in Nigeria from your fake Igbo website. Same Lagos that is able to build electric train something your FG can not accomplish even after selling trillions of barrel of crude oil, same Lagos is built a seaport with several bridges.

Make we no even talk about the many oil producing state earning trillions yet dare not venture into what Lagos is doing.

SadiqBabaSani:
Please take your time to read up and see how Lagos is the most corrupt state in Nigeria

Onitsha Monorail
Orient Petroleum Refinery

And other Anambra invested billions of dollars on are no where to be found yet Lagos we can actually see visible project is the most corrupt.

When foolish souls are pointed out your household should be at the forefront with your father leading the line.

Sanwo-Olu is taking bold steps to ensure the development of Lagos continues, even in challenging times. N79 billion for crucial projects like Massey Children Hospital and Opebi Link Bridge is a testament to his commitment. The focus on infrastructure is what Lagos needs to thrive. Let's watch how these projects unfold!