The Kwara State Government has clarified that it has paid off the N17 billion infrastructure bond obtained in 2009, even as it prepares to obtain a fresh N20 billion bond for new projects.
The state government, in a statement by Dr. Muyideen Akorede, the Senior Special Assistant on Media and Communications to Governor Abdulfatah Ahmed, said the N17 billion bond was fully paid on August 5, 2014, following prompt payment to subscribers throughout the bond’s five-year tenure.
The government maintained that the repayment of the N17 billion bond, which was obtained by the previous administration of Dr. Abubakar Bukola Saraki, did not impose any undue burden on the state’s finances as the bond maintained an issue rating of A and issuer rating of BBB- which signified the superior credit profile of the Kwara State Government.
The statement listed the N17 billion bond projects as the Kwara State University, Harmony Advanced Diagnostic Center, International Aviation College, remodelling of Ilorin Stadium Complex, phase one of Ilorin Water Reticulation Project, the Ilorin Cargo Terminal, as well as various urban and rural road and electrification projects.
Stressing that long term borrowing such as bonds are cheaper and more reliable means of funding major capital projects, the state government maintained than the proposed N20 billion bond will finance innovative projects such as dualisation of Michael Imoudu-Gamo Road, part completion of Kishi-Kaiama Road, the indoor sports Hall of Ilorin Stadium and the new campuses for Kwara State University at Osi and Ilesha.
Other proposed projects are new secondary school classrooms across the state, equipment for the International Vocational Center, Ajase Ipo, remodelling of General Hospital, Oro as well as cottage hospitals, the state’s counterpart funding for an Industrial Park ,which will generate 3,000 local jobs, provision of electricity transformers and take-off of Contributory Pension Scheme, which is a precondition for accessing other infrastructure funds.
Continuing, the statement emphasised that the proposed bond was a necessity given the challenges in the national economy and huge drop in monthly allocation, which have limited government’s ability to fund new infrastructure, as well as the urgent need to begin closing the Kwara Infrastructure Gap, which is estimated at more than N200 billion.
It therefore assured the public that the administration of Governor Ahmed has taken steps not only to ensure the state government can afford the bond repayments without any undue pressure on its finances, but also that it has reformed its revenue machinery to boost government’s capacity to meet its other obligations to the people.
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