The Global Credit Rating (GCR), has accorded Lagos State Government a Long Term Issuer A+ (NIG) and Short Term Issuer A1 with positive outlook for the current rating period Y2021.
The Permanent Secretary, Debt Management Office (DMO), Mr. Olujimi Ige, while reacting to the recent announcement by GCR, said the current rating underscores the State’s stability as a responsible financial player in the capital market, stating that as a proactive response to Market situations, Lagos State has successfully called up and redeemed the Programme 3 Series 1 Bond (N47bn) on June 30th 2021.
He said the agency gave the rating after assessing the Bond issuances by the State Government of N85.1bn, N12.2bn and N100bn, acknowledging it as high quality with an A+ rating.
Ige explained that GCR also observed that the State has about 70% of the Country’s total industrial investment and 65% of commercial activities that complement its pivotal role in the country, adding that its strengths stem from a robust internal economy and strong financial independence from statutory allocations, with about 80% of total recurring income being Internally Generated Revenue (IGR).
According to the Global Credit Rating’s statement, “Lagos State’s business profile is supported by its position as the financial centre of Nigeria, accounting for over 25% of Nigeria’s total GDP and more than 50% of non-oil GDP. The State is also a critical commercial hub for a broader West African region which ensures that it continuously attracts a diverse range of national and international businesses as well as a highly skilled workforce”.
“In spite of the COVID-19 Pandemic and its related setbacks, Lagos State remains resilient, with the proportion of IGR to total recurrent revenue up by 8.9% to account for 70% of the total in the third quarter for the year 2020 above the year 2018 and the year 2019 positions”, it added
The Permanent Secretary stated further that the Bonds raised by the present administration are being utilised to fund infrastructure, spanning different sectors such as Transportation, Education, Housing and Health, amongst others, in order to make life easier for the teeming population of Lagos State.