Kwara State government is to raise N20 billion bond from the capital market to finance its infrastructural programmes.
The state executive council which met yesterday immediately after the swearing-in ceremony of the new commissioners, agreed that the bond has become necessary in the face of the slide in the monthly federal allocation.
The Commissioner of Finance, Ademola Banu, while briefing journalists shortly after the council meeting, said “few months ago, the state was earning N3.4billion as federal allocation, but that last month, it went down to N1.4billion.”
He noted that the amount will not be able to sustain the state government’s commitment to salaries alone, which stands at N2.4 billion monthly if nothing is done to improve the situation.
While fielding questions at the press conference, the Chief Economic Assistant to the Director-General for Kwara Public Private Partnership, Yomi Ogunmola said the state will not be able to achieve her infrastructural drive if an alternative source of funding is not sought.
He also clarified that the state government, aside improving the internally generated revenue, believes that the bond will help to cause a bottom-up spiral effect on the economy of the state, as more investments will spring up with enhanced infrastructural development.
Furthermore, the newly appointed Commissioner for Information, Alhaji Mahmud Ajeigbe, expressed delight at meeting newsmen, and also added that the state has resolved to use the bond for multi-sectoral projects which will cut across education, health, sports, roads, education and energy.

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