The state governments get free money (Allocation) from the federal government, yet they do not see it fit to find other ways of raising money without putting generations of citizens in debt. This is a disgraceful phenomenon which should be stoppped.

What if the Feds did not provide this allocation, would the states then go bankrupt? SMH

The Governor of Ekiti State, Dr. Kayode Fayemi Tuesday told stockbrokers and management of the Nigerian Stock Exchange (NSE) that the N20 billion bond raised recently from the capital market would accelerate the rapid development of the state.


Speaking on the trading floor of the exchange in Lagos, Fayemi also declared that the proceeds from the bond would be judiciously utilised to ensure the completion of all target projects, just as he pledged to render quarterly report to the Securities and Exchange Commission (SEC) on the use of the bond.

The exchange recently, approve the listing of Ekiti State N20 billion fixed rate infrastructure development bond 2018 on its official list.
The Ekiti State governor disclosed that he had directed all concerned to ensure close monitoring and effective supervision of the projects being financed with the bond proceeds.

According to him, apart from other projects, a total of 11 road projects had been awarded, pledging the administration’s commitment to complete all the various projects within 24 months.

He noted that apart from the road projects, establishment of Ekiti State School of Agriculture and rehabilitation and expansion of Ero Waterworks would be given serious attention. Other projects are Ikogosi Warm Spring Development Company, construction of ultra-modern civic centre in Ado Ekiti, construction of ultra-modern market in Ado Ekiti, construction of Lagos liaison office, construction of new Governor’s office, and rehabilitation and expansion of Ado Water works.

Source-ThisDay

My reservation is not on raising N20B bond, but on what the money will be spent on. Was expecting the bulk of the money to be spent on ventures that will increase the state IGR, but then am not the Governor. Building a liaison office and Governor's office with a loan doesn't cut it for me.

I Agree OAM4J. Yes, you can raise bond, that is what cash strapped Govts and Municipalities do, but it is sheer stupidity to spend your borrowed money on projects you aren't planning to make profits from. If they have no plan to make these utilities generate income through tolls, levies, taxes e.t.c then we must call it Nonsense.

But I believe Fayemi is not Foolish and bond investors can't be that stupid. So maybe there is an income generation plan to this.

Kilode?!:
I Agree OAM4J. Yes, you can raise bond, that is what cash strapped Govts and Municipalities do, but it is sheer stupidity to spend your borrowed money on projects you aren't planning to make profits from. If they have no plan to make these utilities generate income through tolls, levies, taxes e.t.c then we must call it Nonsense.

But I believe Fayemi is not Foolish and bond investors can't be that stupid. So maybe there is an income generation plan to this.

Please understand that I do not have any objection to fund raising by state governments through bonds. I however believe that these state governments should look for other ways of generating revenues first, before turning to bonds as a last resort.

If anyone can list any revenue generating venture, through any means, by Fayemi or other state governors with the exception of say, Fashola, then I'll feel better.

Fayemi and these other governors in my view, are incompetent and essentially lazy when it comes to revenue generation. With their PhDs, they should have big revenue generating ideas which could propel their states to the next level. Any fool can get free money from the Feds and spend it, or obtain it from the bond market, spend it and leave the debt to his successor. SMH