Lagos — Lagos State government said the country's apex bank, Central Bank of Nigeria (CBN), has approved major investors into Lagos State Debt Issuance Programme (Bond Issuance) to trade their bonds.

State Commissioner for Finance, Mr. Rotimi Oyekan, disclosed this at a news conference yesterday, saying that investors could now sell their bonds whenever they needed cash.

"With the new development, Lagos state government has since acquired the capacity to trade at the secondary market platform where CBN will serve as bank for investors to sell their bonds. This means that an investor into the bond living in any part of the world who wishes to sell his holding can always settle the trade through the central bank."

He said government had since licensed 15 banks, which the investors could use to trade their bonds, adding : "We think we could celebrate this because the new platform will widen the investor base of the bond."

The trading, which will start in January 2010, according to Oyekan, is an acknowledgment of CBN's affirmation that the state is credit worthy.

Speaking on the proceeds from the bond, Oyekan said it would be spent on projects, which included the construction of Lagos-Badagry Expressway, provision of medical facilities and building of schools across the state.

He told the news conference that the bond had since September paid the sum of N3 billion as coupon to investors . It could be recalled that in 2008, Lagos State Government floated a N275 billion bond out of which it fixed the sum of N50 billion to kick start the scheme.