by Austin Ogwuda
ASABA — DELTA State Governor, Dr. Emmanuel Uduaghan, has, sent a letter to the state House of Assembly, requesting for approval to raise N50 billion from the Capital Market.

Also yesterday, the Speaker of the House, Prince Sam Obi, was welcomed back to the House after his short tenure as the Acting Governor of the state. There was exchange of pleasantries by members, who cheered the Speaker for doing them proud when he acted as the Governor.

The N50 billion, according to the Governor, would be used for developmental needs of the state.

The letter which was read on the floor of the House reads:

“In line with the vision of this administration to effectively modernise and expand the infrastructure of the state to address the critical economic and social needs of our people, I wish to inform you of our strong desire to accelerate the completion of some of the projects that will catalyze our aim by raising funds form the capital market through issuance of a N50 billion infrastructure development bond.

“The choice of bond as a financing option was informed by the following reasons:
*Bonds are a fast and fiscally prudent option to finance government’s development agenda;

*They are a relatively cheaper source of funds compared to commercial bank loans;
*Current favorable interest rate regime;

*Bonds are financially convenient because of their longer tenor which enhances liquidity/cash flow,” the letter added.

“Accordingly”, the letter went on, “I hereby request the Right Honourable Speaker and Honourable members of the House to speedily approve the issuance of this N50 billion infrastructure development bond.”

The House received the letter and is yet to approve same.