‘How we spent Ekiti’s N25bn bond’
Ekiti State Government, recently, said that proceeds of the N25 billion bonds it floated on the Nigerian Stock Exchange (NSE) were committed to the provision of development infrastructure.
The State Commissioner for Finance, Mr Dapo Kolawole, disclosed this to the News Agency of Nigeria, (NAN) on Thursday in Ado-Ekiti.
Kolawole said contrary to some other opinions, the bond was the best option because of the prevailing economic realities and passion of the Fayemi-led administration to develop the state.
According to him, the state government settled for the bond after considering available options, including embarking on an aggressive tax drive to improve its revenue base.
He said the state government settled for the bond because of its transparency, 14.5 per cent interest rate compared with banks’ lending rate of between 20 per cent and 22 per cent and the seven-year repayment period.
Kolawole also said that they had repaid N11 billion in less than two years of taking the bond and had transformed the landscape of the state through the provision of world class infrastructure.
The finance commissioner said that the idea behind obtaining the bond was to stimulate the economy and develop the state.
He listed the projects prosecuted with the bond’s proceeds to include 11 intratownships and inter-township roads totaling over 170 kilometres.