By Demola Akinyemi

ILORIN — Kwara State government has concluded plans to obtain a N20 billion bond from the capital market to enable it meet infrastructure development needed for economic growth of the state.

Abdulfatah Ahmed

Commissioner for Finance, Alhaji Demola Banu, said this after the maiden executive council meeting at Government House, Ilorin yesterday.

Banu, who was flanked by his Information counterpart, Mr. Tunde Ajeigbe, at the press conference said the N20 billion loan became necessary because the state government could no longer meet its monthly commitment due to the dwindling revenue from federal allocation.

The commissioner, who said the state used to receive N3.4 billion as federal revenue allocation, added that it now received N1.4 billion and could no longer meet monthly commitment of about N2.4 billion.

Banu also explained that the state government had planned to take the N20 billion bond from the capital market two years ago, but restrained itself due to insinuations from the opposition that it would be used for electioneering campaign. “But the need for the bond persisted, thus the need to resuscitate the bond issue,” he said.

The commissioner, however, said the bond proposal was subject to approval of the state House of Assembly and the Securities and Exchange Commission,SEC.

He added that the specific infrastructural projects which the bond would be used for would in turn attract revenue, wealth creation, economic growth and attract investors.

The commissioner also said that part of the bond would be expended on completion of ongoing infrastructural projects, adding that the projects, which were said to be community based, would also impact on lives of the people.

He further said that the projects, which were said to be evenly spread in all parts of the state, were also meant to help increase socio-economic indices in such areas of health, education, energy, sports, roads.

The governor’s aide also said that repayment of the N20 billion bond had been structured in a manner that it would not affect the N4.6 billion bail out fund, adding that the state government had blocked leakages and energised its internal revenue services.