June 18, 2009

SEC yet to approve Ogun State N50bn Bond

By Peter Egwuatu
THE Securities and Ex change Commission (SEC), apex capital market regulator has not given approval to the proposed N50 billion Bond by the Ogun State government, saying until all the necessary requirements are met.
Meanwhile the Executive Governor of Ogun State, Otunba Gbenga Daniel has called on the Securities and Exchange Commission (SEC) to support Ogun State in issuance of a N50 billion bond to finance infrastructure in the state.
The Governor who paid a visit to the Commission recently said the bond will enable the state embark on industrial development.

In his response, the Chairman of the Commission, Senator Udo Udoma, said the state’s decision to raise a bond in a bid to develop the state is a welcome development and the Commission will give all the necessary assistance needed, towards securing the requisite approvals.

He however, noted that the approval of the Commission is subject to meeting the Commission’s rules and regulation.
Senator Udoma reiterated the need for the three tiers of government to take advantage of the capital market to raise longer term funds to provide critical infrastructure needed for economic development.

Earlier Governor Daniel had paid a courtesy visit on the Nigerian Stock Exchange (NSE) to brief it of its proposed plan to float a N50 billion Bond to finance needed infrastructure.

He told the capital market community that his administration having met the short and medium term objectives now wish to meet its long term objectives.

He said, “ There is no deep sea port in Nigeria and in the West Coast of Africa. So building a deep sea port have a lot of advantages for the State and the country in general. With deep sea port we would be able to get big ships berth in our country. There will be no need for ships carrying Nigerian goods from Europe or America to tranship to other ports before getting to Nigeria. We would begin to have direct transportation of our goods from Europe or America to Nigeria.. The issue of congestion of the Tincan Island and Apapa Wharf will be reduced drastically. The cost of transportation  and duration of ship landing in Nigeria would be reduced.”

On the aspect of building roads, he said, “ It is capital intensive. Our country do not produce bitumen and we have to import them. So we intend to build many roads across the State. The money we are about to raise through  Bond will be used to touch all the nooks and crannies of the State in one way or the other. We are planing to have joint corporation with our neighbouring States like, Ondo, Edo and Delta where there are some deposit of bitumen to see how we can explore it.

We are partnering with Lagos to have free flow of traffic. We are part of the Mega Lagos City project. The airport we are building is going to have railway track to Lagos. The modern railway track that the Lagos State plans to build would be connected to Ogun State. Most of the water that Lagos is consuming is being supplied by Ogun State.