Onome Amuge
Parallex Bank has unveiled a N4 billion financial support programme for local government authorities in Lagos State, marking one of the most direct interventions yet by a Nigerian lender into subnational governance and community development financing.
The scheme, announced at a retreat for newly elected local government chairmen, is designed to strengthen the capacity of all 20 Local Government Areas (LGAs) and 37 Local Council Development Areas (LCDAs) across the state. The bank said the package would provide short-term liquidity, improve financial discipline and support local projects, from infrastructure to social welfare.
Olufemi Bakre, Parallex Bank’s managing director and chief executive officer, said the initiative reflected the lender’s enduring commitment to strengthening grassroots governance. Speaking through Frank Alarapon, the bank’s chief digital officer and head of retail and SME banking, he explained that the facility was structured with flexible terms, including a 30-day clean-up cycle, to ensure sustainability.
“Local governments are the closest tier of governance to the people, and their success directly impacts the well-being of millions of Lagos residents. At Parallex Bank, we are committed to giving them the financial tools they need to thrive, whether through direct council funding, support for elected officials, or facilities for contractors and suppliers who bring development projects to life,”Alarapon said.
The N4 billion allocation comes at a time when local governments across Nigeria face mounting fiscal challenges. Despite being constitutionally entitled to statutory allocations from the federation account, many councils struggle with delayed transfers, rising personnel costs and inadequate internally generated revenue. Analysts say this often leaves them dependent on short-term borrowing to fund pressing obligations.
Parallex Bank noted that its programme is more than a lending line. Alarapon highlighted complementary offerings such as asset-backed financing, mortgage services, digital revenue collection platforms and trust and legacy planning, which the bank hopes will help councils not only access funds but also manage them with greater accountability.
The approach aligns with the state government’s push for financial innovation at the subnational level, particularly as Lagos continues to struggle to address rapid urbanisation, infrastructure deficits and growing demands for improved public services.
“Supporting Lagos State’s LGAs and LCDAs is both a business opportunity and a development mission. Our goal is to see local governments succeed in their mandates, because their success translates directly into better outcomes for the people they serve,”Alarapon said.
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