As their requests for additional bailout funds from the Paris Club funds remain under consideration, it seems that state governors are looking to raise bonds from the Nigerian Stock exchange to generate more cash for their respective states from the Nigerian Stock Exchange to fund projects. Whether they want this as an alternative to the Paris Club funds or as a supplement to it remains unclear though. The chairman of the Nigerian Governors’ Forum, Abdulaziz Yari of Zamfara State made the development known as he addressed correspondents after the governors’ meeting in the Presidential Villa in Abuja.
According to him, finding other revenue generating sources has become a necessity for state governors as incomes to the states have been consistently dwindling, so much so that projects could not be funded. Yari said it was in the light of this that a committee, comprising officials of the stock exchange and the NGF secretariat, was being constituted to work together on the bonds.
“The stock exchange has given the opportunity to some states that are ready to go into the stock exchange to raise bonds to finance some projects. Because what is tied to the bonds is our income and our income is shrinking. Through the bonds, we can finance projects that will impact on water supply, sanitation, etc.” Yari said after their meeting late Wednesday night.
Just a few days ago, the governors had made requests for another tranche of the Paris Club refunds to be disbursed to the states despite the fact that audit of the past disbursements are not yet complete. According to the governors, they wanted a prompt release of the funds so that they could factor them into their 2018 budget.