‘How we spent Ek­iti’s N25bn bond’

Daily Trust - - CAPITAL MARKET -

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.

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