By Gabriel Enogholase
BENIN—EDO State Governor, Mr Adams Oshiomhole, yesterday, explained why that state has gone to the Capital Market to access a N30billion bond, saying that it would be cheaper to borrow from the Capital Market with an interest of about 11 percent as against 18 or 19 percent offered by commercial banks.

Oshiomhole, who gave this explanation while hosting traditional rulers from Edo Central Senatorial District in Government House, said  the money was needed to sustain the level of development in the state.
According to him,” we decided to  go the Capital Market to borrow to sustain our present level of development.

We have awarded contracts that is over N150billion and when you look at the revenue accruing to the state government, it is clear that so far, we are able to cut cost here and there.

“I told you last time, that in my first year in office, we found out that we cut the cost of running our re-current expenditure by N5bn. That is not enough to do the roads the people need. So, we have to cut cost here and there. But we also realized that the commitments we have entered into, we to able to sustain them,” he said.

“What is interesting is that our political opponents who have been ma king all the noise over the issue is that in the Appropriation Act under Prof. Osunbor, they approved for the government to borrow over N12billion. In 2009 under Hon. Zakawanu Garuba as Speaker, in the Appropriation Act, there was a provision for the Edo state government to borrow about N13 or N14billion and in this year Appropriation, they also made a provision for the government to borrow up to N16billion or so”.

“We have not take advantaged of these provisidons became when you borrowed, you pay. You don’t borrow and you go and sit down. We are not borrowing from the World Bank that will give you 30 years for re_payment. And when we look at the cost, we found out that lit will be in our interest to go the Capital Market and borrow at a lower rate than to the Commercial banks where they pay as high as 18 or 19 percent”.

The governor told the traditional rulers that the major challenge facing him was not why he was borrowing, but whether he would make judicial use of the funds or not just as he vowed that he would borrow or take what belongs to Edo state people into his pocket.

He challenged those who are opposed to his going to access fund in the Capital Market to first of all institute a legal action against President Goodluck Jonathan who has gone to the Capital Market to source for Trillions of Naira to balance its recurrent expenditure.

Besides, the governor listed Lagos state that accseed over N180billion, Bayelsa state_N50 billion, Imo State_N25Billion and Ogun state that has got approval from the state legislature to borrow N100billion, all from the Capital market. All these are states controlled by Peoples Democratic Party (PDP), he said.
Oshiomhole said that he will not wait until he lives office before commencing re_payment of the loans, saying that the re_payment would commence as soon as it was accessed.