The Kwara State government yesterday said it will spend N15.5 billion of the N23 billion bonds it intend to issue on the execution of capital projects across the three senatorial districts of the state.
This, the government believes would add value to the socio-economic well being of the populace.
The government said the remaining N7.5 billion would be used for refinancing the loan of N10 billion it had previously obtained from a commercial bank.
Speaking to journalists in Ilorin, the state Commissioner for Finance, Alhaji Demola Banu, his counterpart in the Works Ministry, Dr. Abubakar Amuda-Kannike and Special Assistant to the governor on Investment, Mr. Abayomi Ogunsola, said that, “government’s decision to go for the bond was informed by the need to find an additional source of fund for the infrastructural development of the state”.
He said the debt would complement the fund the state receives from the federation account and its Internally Generated Revenue (IGR) to execute developmental projects and complete on-going ones.
Banu disclosed that the state would have seven- year period to refund payback the debt with a fixed interest of 15 per cent.
This story first appeared in Thisday
Comment
It’s less than a year to election and states are still hell bent on borrowing at an exorbitant rate of 15%. Is this a priority at the moment? I think not.