Ogun State Eyes Capital Market for Infrastructure Funding

Nosa Alekhuogie

The Ogun State Governor, Ibikunle Amosun is looking at raising funds from the capital market to finance the development of infrastructure in the state. Speaking to journalists at the closing Gong ceremony on the Lagos floor of the Nigerian Stock Exchange(NSE) last Thursday, Amosun explained that he was at the exchange to explore opportunities in the market.

A Mutual fund (Unit Trust)

“The capital market isn’t a place where you just jump into, you need to prepare and I want to believe we can do better. There are some responsibilities that come with borrowing money. So when you are in a position to not fulfill those obligations then there is crisis. When we came in, we were doing N700 million monthly, we could not come here with that but now we are doing about N6- N7 billion so we can relatively come to the capital market and say this

is an investment vehicle managed by a SEC (Securities and Exchange Commission) registered Fund Manager. Investors with similar objectives buy units of the Fund so that the Fund Manager can buy securities that willl generate their desired return.

An ETF (Exchange Traded Fund)

is a type of fund which owns the assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. Investors can buy these ‘shares’ on the is who we are and what we have done, we are here for their support. If I come here to take money, I must pay it back. The crisis we find ourselves in today is that we are borrowing short and spending long, it is financial chaos and that is what is happening,” he said.

According to him, now is the time, people believe in his government, stressing “If you come here and they look at the numbers all those boxes would be ticked straight in our favour. If I came here years

floor of the Nigerian Stock Exchange.

A REIT (Real Estate Investment Trust)

is an investment vehicle that allows both small and large investors to part-own real estate ventures (eg. Offices, Houses, Hospitals) in proportion to their investments. The assets are divided into shares that are traded on the Nigerian Stock Exchange.

GUIDE TO DATA:

Date: All fund prices are quoted in Naira as at 14-Dec-2017, unless otherwise stated. back, nobody would have wanted to hear us out but we are here now and ready. Even though I have just a year to go, the governance of Ogun State is not going to end with me. But I think with where we are now, we can take advantage and the benefits of several offerings that the NSE has and that is why I am here.”

He stressed that the infrastructure that would address man power movement is in progress.

He said: “We are talking to a lot of people. Between when we came and now, we have about 146 companies that have now berthed in Ogun State. Those that have invested under and a minimum of $200 million , we know you are there, thank you but those that have invested in more than $200 million and some in excess of $2 billion in Ogun State. They wouldn’t come unless they know that we are getting something right. When we came, we were rated 35th in

Offer price: The price at which units of a trust or ETF are bought by investors. Bid Price: The price at which Investors redeem (sell) units of a trust or ETF. Yield/Total Return: Denotes the total return an investor would have earned on his investment. Money Market Funds report Yield while others report Year- to-date Total Return. NAV: Is value per share of the real estate assets held by a REIT on a specific date. the Ease of Doing Business , but today we are between the bracket of one and four and I want to believe we can strive to be number one. We create enabling environment for business minded people to come and thrive. All these majors are listed on the stock exchange there in Ogun state. We are on the right path but we need funds, we cannot be borrowing short and spending long which is the crisis we are facing at the moment and we want to stop that.”