The Lagos State Government has announced plans to raise 100 billion Naira of public transport infrastructure bond to finance its proposed new bus reform initiative of 5,000 air-conditioned buses.

The new bond will span between seven and 10 years in tenor.

The State Governor, Akinwunmi Ambode, explained that a 30 billion Naira sinking fund has already been set aside for its take off.

Also according to him, the seed money would be generated from the Paris club refunds from the Federal Government and a sinking fund of 14.5 billion Naira.

He added that Lagos plans to invest an additional one billion Naira to kick start the bus initiative.

The three-year initiative is geared towards replacing the iconic yellow commercial buses, otherwise known as ‘Danfo’, which the governor says is no longer befitting for the state’s mega city status.