₦airaland Forum

Tolexander: never wanted to comment on this topic but Gbawe through his comment forced me!
For how long shall we begin to move like a clock that will always go back to its startin point over and over again?
For how long shall we continue to wander in the same wilderness which is more severe than the Isrealite in the Bible cos theirs only lasted for 40years but ours has naw exceeded half a century.
Our government have turned the leadership of this country to a recycle bin in which they can just go at anytime and gat a corrupt and useless file and document to act as a real one just because they wanna secure a future for themselves and their generations to come.
Politcs of let me rub your back so that when am in need of who to rub mine, very sure you will be there for me just for the sake of the next election.
The last time i checked anything about Anenih, he was on the populace's black list of leaders. Why on earth do we need recycling our gabbage just for a selfish reason of 2015 election in which you are not quite sure of witnessing.
It is high time we knew Nigeria's solution is not a function of luck but hardwork of our individual and collective efforts!

drnoel: Eediot, give ur comment to the guy's statement and not make caricature of him.

ujchief: hmmm... Comparing an aligator with a crocodile. Both are long tailed vampires. This serves as a lesson to those who voted Gej and not pdp.
I gues the Engr Tukur is a relation of the pdp chairman, whose son scamed us of subsidy funds. These guys are not ashamed at all!

texazzpete: GEJ just reconstituted the board...new appointment. Stop shifting the blame, this is ALL on GEJ's head.

hypeman: However, have you bothered to check what the bond is earmarked for and why the investors(capital market) were willing to put their money where their mouth is?? If they could have gotten the bond at a lower rate, I doubt they would have opted for the higher rate...

Nigeria: FG, States and Local Govt Must Borrow Responsibly
BY OMOH GABRIEL, 19 NOVEMBER 2012
RELATED TOPICS
INTERVIEW

At the last IMF/World Bank Annual Meetings in Tokyo, debt sustainability took the center stage as financial egg heads from all over the world gathered to deliberate on the way out of the sovereign debt crisis currently crippling the Euro Zones. At the seminar on debt sustainability, Abraham Nwankwo, Director General, Nigeria's Debt Management Office, DMO, was there and had a brief chat with some Nigeria journalist at the workshop.

Excerpts

States have embarked on aggressive borrowing through the capital market. Given that most of them have internally generated revenue (IGR) that are so low and as such depend on federal allocation and oil. Supposing something happens, how sustainable is the borrowing by the states?

The issue of borrowing is global. Borrowing is for regions, countries both developed and undeveloped. It is for states, provinces and households. So first of all, let me make it clear that it is specifically wrong, politically and methodically to single out states and start talking about states borrowing or not borrowing. We have to say that whether as an individual, family, school, organisation, company or country, you have to borrow responsibly. So let me make it clear that there is nothing that makes borrowing by a state sinful in itself. Every economic agent should borrow responsibly.

In the case of Nigeria, of course states borrow within acceptable limits .[size=14pt]There are rules and guidelines and states follow those rules and guidelines. First of all, no state in Nigeria can borrow from the capital market without following the process of borrowing. There are guidelines that apply to every government entity that wants to borrow from the capital market and those rules have been there and are still there and they are being enforced by Security and Exchange Commission (SEC) through the Investment and Security Act as amended.
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There are terms and conditions for any entity whether private or public that wants to borrow from the capital market. So, it is for SEC to ensure they monitor states or make sure that whoever wants to borrow comply with the various specifications in the Investment and Security Act 2007. Hence, the procedures, which private companies that wants to borrow from the capital market undergo is the same with that of the states in the hands of SEC.

Secondly, in the case of states, because they are government entities and sub nationals, they have additional regulations and monitoring guiding them as contained in the Fiscal Responsibility law in the Debt Management Office Act, and based on the authority given to the DMO and the authority given to the Minister of Finance in the Fiscal Responsibility Act, states are also enforced to comply with additional requirements beyond what is already provided in the Investment and Security Act.


So, linking states' ability to service their debts with their Internally Generated Revenue (IGR) of course is the prudent thing to do and that is what is being done. That is why the guidelines allows no state to borrow in such a manner that its total debt service on a monthly basis is more than 40 per cent of its monthly allocation from Federal Allocation.

What is taken into account is the fact that the money is essentially oil revenue. So, as a state, it is expected that your total debt service should not be more than 40 per cent of Federal allocation money. This means that the idea of sustainability of oil revenue has already been factored in. Everybody must realize that it has been taken into account that oil revenue is volatile and unstable.

What this means is that, states that already have internal generated revenue now have a buffer. The rule has been made such that every state must depend not 100 per cent on oil revenue. This is to account for the volatility and vulnerability of oil revenue. So if you have internally generated revenue it is being neglected and considered as a backup.

The second way to look at it is that every year DMO conducts a debt sustainability analysis and takes into account that oil revenue may drop to as low as $30 per barrel. It is on this basis that the DMO has an idea of the total debt owed by the country and looks at it and consider what could happen if oil revenue were to drop to as low as $30 per barrel.

This means the way we manage our debt or control it is such that the vulnerability or volatility of oil revenue is essentially taken care of. The second thing is beyond the figures - that is the value added. This is what I believe every country and states should be focusing on. What value do you generate in terms of productivity, growth and employment with the use of financial resources whether borrowed or not?

From the guidelines, I can say Nigeria's method meet the best standard in the world, but in addition, over the past few years, effort is being made so that emphasis is not placed only on the statistics. Emphasis should be on using resources effectively and efficiently so that you can use it to generate maximum growth, employment and eradicate poverty.

When you look at the discussion going on at the IMF/World Bank meeting, you can discover that all over the world, countries are battling with issues of debt sustainability and the like, but you can say that Nigeria is relatively lucky because even before the global financial crisis started, Nigeria has been on path of reform since 2004.We continued on that path of reform up till the time that the global crisis set in and that is why despite the global crisis, the country has not been badly impacted like other parts of the world.

Paul John: Aregbes management skill is commendable.



I'm presently in Osun. Ever since the creation of the state, I've never seen the type of massive project the present administration is embarking on. The only past governor who did something similar but far lesser than what Aregbe is doing was Adebisi Akande.

check this out to know what the N22billion is going to be spent on.

‘Low IGR compels states to go for bond issuance’
FRIDAY, 23 NOVEMBER 2012 00:00 REMI FEYISIPO
The Osun State government has said that the quantum of developmental agenda designed to transform the state and other South West states calls for a more detailed and strategic design, both in conceptualisation and the manner such projects are to be actualised financially.

Speaking with BusinessDay in Osogbo, the state capital, Wale Bolorunduro, the state’s commissioner for finance, said the “IGR is a case of “chicken or egg,” you must catalyse the economy before you can aggressively pursue IGR. Our shared passion for monumental capital projects is a strategy aimed at boosting economic activities in the region.”

According to him, this is so given the peculiarly limited monthly allocation from the Federation Account and the currently low Internally Generated Revenue (IGR) in the states, with the exception of Lagos.

Sustainable economic activities at micro level, he pointed out, is inevitable for enhancement of the states’ internal revenue, thus meaningful capital projects such as road and commercial infrastructure are proactive strategies to prevent our states from programmed extinction.

[b]He said the rationales for choice of bond, as a preferred source of financing for government were its relative cheapness and longer tenor.

Lagos, Osun, Ogun and Oyo states are presently approaching the capital market for bonds of different amounts and the development has been criticised, especially by the opposition parties and some people in their states.

Reacting further to this, the Osun State commissioner for finance said the uncertainties of Nigerian money market and the implications of unpredictable fluctuations in money market rates on bank loan interest endear professional managers of states’ treasuries to developmental bond, whose coupon remains unchanged throughout an agreed tenor or period, adding that the yield on the fund comes to near single digit.

“Ironically, the rigours involved in getting bond issuance programme approved, particularly in the area of documentation and scrutiny from capital market regulatory authorities, is enough test of discipline, transparency, initiatives and vigour, the Investment and Securities Act of Nigeria 2007 can be consulted for details of the requirements and documentation for bond.[/b]

HNosegbe: The bolded is the crux of the matter. I really don't understand how and why a government should take a loan to construct a road when the means for recovering the funds. Basic finance tells us that for borrowing to be feasible for any project, the expected returns from the project MUST surpass the cost of funds. Now for a loan with 14.75 percent coupon rate, HOW EXACTLY will the returns from the roads constructed and dilapidated buildings rebuilt EXCEED this rate? How will the state prevent a situation where debt servicing begins to eat up a major chunk of the annual budget, as is the case with the FG?

I'm not convinced.

Purpose of municipal bonds

Municipal bonds are securities that are issued for the purpose of financing the infrastructure needs of the issuing municipality. These needs vary greatly but can include schools, streets and highways, bridges, hospitals, public housing, sewer and water systems, power utilities, and various public projects.



Municipal bond issuers
Municipal bonds are issued by states, cities, and counties, (the municipal issuer) to raise funds. The methods and traces of issuing debt are governed by an extensive system of laws and regulations, which vary by state.

Elueme: @ OP you speak as if you are God. Your assumption and audacity could make the president lose votes if at all he will recontest. The year 2015 is still far so what the president can do between now and then will determine how nigerians will vote.. I wish him well

HNosegbe: This is why I continue to insist that oil has destroyed this country.

Where are your groundnut pyramids, o ye Northerners?

How govt, politicians nailed Lagos-Ibadan expressway
WEDNESDAY, 19 DECEMBER 2012 00:00 JOHN ANFELA, LAGOS OPINION - LETTERS
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SIR: A late former Head of State once invited three prominent Nigerian businessmen to a top secret meeting in Aso Rock. The sole agenda was to persuade the businessmen to either start new lines or invest more to expand their businesses to create more jobs for Nigerian youths.

The three businessmen, one each of Hausa, Igbo and Yoruba, met the General and agreed on all the proposals each of them presented to him, as well as the required capital. The General called in his ever-faithful CSO to deliver to each of the three businessmen substantial amount of money requested as capital, still secretly, to establish the businesses. They opted to receive the cash in Lagos.

The fourth invitee, Vinkart, as all of them called him, who could not make it on time, was a prominent Indian industrialist in Lagos. He came with excuse for coming late. The Yoruba man called him aside after their sympathies were offered and accepted. He was ready to give Vinkart all the money the General would give for the project, if the Indian would make him the sole distributor of the company’s products plus a seat as director. Vinkart said it was no problem. The Igbo man next called Vinkart aside and told him if he was made director and sole supplier of all the corporate input, including local and imported raw materials, machinery and parts, he would equally part with his money for the project. The Hausa also told Vinkart he would gladly part with his money to form a giant pool for the much larger investment, if he would be made the chairman of the board. Vinkart agreed.

Soon afterwards, the maximum ruler re-entered, saw Vinkart, listened to the explanations for his lateness, and equally offered his sympathies. The Hausa man then called the C-in-C and told him that Vinkart’s timely arrival had got the deal all sewed up. General was surprised and asked: What deal? They explained to him how they would form a gigantic company. He stopped listening. Next, he told them: “The deal is off this minute!” He stormed out of the meeting room.

When the CSO asked his boss the reason for his anger, he said: “I wanted them to compete with Vinkart. I wanted to show them off to Vinkart that these are the Nigerians who would take him on and beat him hands down. Now, to the last man, all of them won’t compete. They want to be his non-executive directors! What kind of slaves’ mentality is that? Rather than make loads of money from operational profits and expand the economy, they want sitting allowances and profit from services! The deal is off! Find me three better ones!”

This mirthless joke sailed through newsrooms nearly two decades ago to explain why Nigerians hold prestigious directorship positions in Indian companies, while the Indians dominate all sectors of the economy operationally. All those two decades later, a similar problem of slaves’ mentality aggravated by pervasive corruption stalled the N89.5 billion Lagos-Ibadan Expressway reconstruction and expansion project.


It’s been wheels within wheels from the day Bi-Courtney Limited (BCL) got the concession for the reconstruction, modernisation and expansion of the 105 km Lagos-Ibadan Expressway as a Public Private Partnership (PPP) scheme. Politicians and government officials in Nigeria are not in a hurry to embrace PPP, simply because it will not enrich their pockets. It took more than two years to approve the design for the road project, according to the report that the Infrastructure Concession Regulatory Commission (ICRC) submitted to President Goodluck Jonathan through the Chairman, Chief Ernest Shonekan. Many other stumbling blocks were placed on the path of this all-important PPP project by politicians and civil servants until the concession was terminated, and we are back to business as usual.

Shortly after, a construction firm was mobilised to site, a few days after a Director from the Ministry of Works announced on TV that the work so far executed within a month met International standard and the expectations of the Ministry.

• John Anfela, Lagos.

Osun’s N18.3bn controversial loan

NOVEMBER 18, 2012 BY TUNDE ODESOLA

Osun State Commissioner for Finance, Economic Planning and Budget, Dr. Wale Bolorunduro, and the Chairman of the state Peoples Democratic Party, Mr. Gani Olaoluwa, in these interviews with TUNDE ODESOLA speak on the inquiry into the N18.3bn loan obtained by the Olagunsoye Oyinlola’s administration

PDP should bury its heads in shame — Bolorunduro

The Professor Femi Odekunle-led panel of inquiry investigating the N18.38bn loan obtained by Oyinlola’s administration indicted the former governor for mismanagement. What’s your view on the report?

The panel is certainly made up of reputable technocrats distinguished by their commitment to the development of Osun State. Going by the manner the panel conducted itself, it was obvious that equity, fairness, transparency and accountability were the watchwords guiding its activities. However, I would not want to comment on the report because my comment will neither add nor reduce to it. The report of the panel was borne out of the submissions by those that appeared before it and the investigations conducted by members. The panel conducted its sittings openly and dispassionately, and I think this informed the decision by former Governor Olagunsoye Oyinlola to appear before it. The panel’s indictment of the former governor and other officials is only a warning to people in public offices to be wary of their conducts while in office because our actions and inactions would be accounted for at the end of the day.

But Oyinlola and Osun Peoples Democratic Party have insisted that the loan was taken in the interest of the masses.

The loan was irresponsible and misguided. It was capable of shutting down the economy of Osun State. In talking about the loan, we must be mindful that only the truth, facts and figures would suffice and make a meaning to the people of Osun. Why is it that the monthly repayment obligation of N619m on the facility was calculated by the United Bank for Africa based on the whole facility amount – irrespective of the undisbursed portion?

Our review and findings on the projects financed with the loan facility showed that the level of milestone reached by the contractors – as indicated by the various certificates of completion — was abysmally low when compared to the level of disbursement. In addition, the manner of management of the facility by the lender led to our decision to negotiate a fresh and well-structured N8.3 bn term loan from First Bank of Nigeria so as to take out the UBA loan. Mind you, the Oyinlola administration admitted that it had spent N10bn of the N18.3 bn loan. So, Osun was saddled with N8.3bn loan burden. And this was why we had to negotiate the remaining N8.3bn from UBA to First Bank. Pray, why take such a gigantic loan a few months to the end of your tenure? There’s something sinister about the hurry in the obtainment of the loan. First Bank loan has a moratorium of one year with a 60-month tenor while the UBA loan is without a moratorium and has 36-month tenor. While the First Bank loan has an annual interest rate of 10 per cent with 0.75 per cent annual management fee, the UBA loan has an annual interest rate of 13 per cent with 1 per cent annual management fee.

Do you mean that the loan has no benefit whatsoever for the state?

Exactly! It shows the PDP is made up of cultural reductionists and how else can he explain the fact that he released N430m public funds to build Radisson Hotel without following due process? He signed off the fund and broke all the financial regulations. He blamed the court for sacking him and that he would have gone after the company. The question is that how can he recover the funds that was disbursed without transaction trail or legal agreement duly vetted by the Ministry of Justice? The same financial recklessness was displayed in the Free Trade Zone transaction, in which Osun lost N1.5bn. That is not how to accept responsibility! It is alien to our culture and PDP members should just bury their heads in shame. It would shock you that the Oyinlola administration negated the purpose for which the loan was taken.

What’s your position on the tenor of the loan which has generated controversy?

Given the lean resources of Osun, it is unreasonable to negotiate such a substantial loan with a 36-month tenor. How can a state survive by using more than 32 per cent of its revenue for servicing a loan at a time when its personnel and overhead costs were already over 100 per cent of its statutory revenue? The allegation that the Rauf Aregbesola administration took N25bn from First Bank is fallacious. The referenced N25bn facility being claimed as loan by the PDP is a credit line and only the sum of N8.3bn used to pay down the UBA facility was drawn to date. The state’s obligation is limited only to N8.3bn. Knowledge of financial and treasury management shows that a credit line is not a loan until it has been drawn and this government has not drawn from the facility. The records are there for everyone to see. Our strategy of restructuring the referenced term loan is first, to convert it to a long term obligation that it should be, and then take it out by sourcing a cheaper debt instrument (developmental bond) from the capital market. Osun does not owe any financial institution.

aletheia: The difference is that between six and half a dozen.

‘We advised Oyinlola against N18.38bn loan’

SEPTEMBER 5, 2012 BY TUNDE ODESOLA

former Osun State governor, Olagunsoye Oyinlola
| credits: cfanet.org
Key officials in the administration of Prince Olagunsoye Oyinlola have said they advised the former governor against taking a loan of N18.38bn.

Testifying before a six-member panel of inquiry set up by Osun State Government on Tuesday, ex-Head of Service, Mr. Segun Akinwusi, described the loan as “messy and scandalous.”

In a memo submitted to the panel, Akinwusi said, “The loan was a sad page in the history of Osun State,” adding that the “loan is a messy affair in which some people were telling half truths or no truth at all.”

Akinwusi accused top government officials in the Oyinlola administration of performing ignoble roles in the loan, adding that projects for the loan were abandoned.

The former HoS, who retired a few weeks ago, said it was wrong to expend the loan on non-income yielding projects, adding that it was wrong of Oyinlola to take the loan at the twilight of his tenure.

“It was wrong to take the loan which cannot pay itself. You don’t take loan for social projects. There were contradictions by government agencies on the loan,” Akinwusi said.

Also, the Permanent Secretary, Ministry of Finance, Mr Abiodun Akintaro, said he advised the ex-governor against taking the loan.

Akintaro, however, said when the decision to take the loan was finally taken, he had to support it because it had become a collective decision.

Chairman, Osun State House of Assembly Appropriation Committee, Mr Femi Farounbi, said it was appropriate for the Oyinlola government to obtain the loan and spend it on building six stadiums across Osun.

But the Chairman of the panel, Prof Femi Odekunle, queried the appropriateness of constructing six stadiums when the state was facing economic challenges.

Odekunle also queried the rationale behind the construction and the abandonment of Radison Hotel, a project by the state government.

Farounbi said neither him nor his committee was aware of the terms of the loan

North set to shoot down new Petroleum Industry Bill
Our Reporter December 19, 2012 16 Comments »

https://sunnewsonline.com/new/wp-content/uploads/2012/12/oil-612x300.jpg

•Accuses 4 S’south states of earning more than region

From ADETUTU FOLASADE-KOYI, Abuja

The battle-line was drawn between Northern Senators and the Senate leadership yesterday over consideration of the new Petroleum Industry Bill (PIB). The North is angry that the new PIB will further impoverish the 19 northern states because the revenue accruable from the Consolidated Revenue Fund (CRF) to four states in the South-South is presently more than what accrues to the entire region. Besides, the North is also unsettled that the Presidency may have strangulated the region of energy supply.

The war shifted to the Senate chambers as lawmakers dared their leadership when they outrightly rejected the commencement of debate on the new PIB when it was introduced by Senate Leader Victor Ndoma-Egba (SAN). Daily Sun authoritatively gathered that the North has marshalled its opposition to the new law with the commissioning of its independent study on the PIB by consultants, who have written a comprehensive report condemning the proposed new legislation.

The report has urged the Northern Governors’ Forum (NGF) to scrutinize the PIB “very closely” and ensure that it does not scale through in the National Assembly. The North’s opposition is hinged on five factors which are skewed highly in favour of the South-South. They are: institutional arrangement; fiscal provisions, divestment of equity, gas supply to the North and the host community fund. In the commissioned study, a copy of which was obtained by Daily Sun, the region is vexed that, “on top of the 13 per cent statutory derivation from the Federation Account,” with the Niger Delta Development Commission (NDDC) collecting another 3 per cent of oil operations and the “massive amount of federal funds being spent on the Niger Delta Amnesty Programme, the new PIB is adding 10 percent of the profit of all oil and gas companies to the Niger Delta states and communities.”

In the document under review, the region fingered the revenue accruable to four states, Akwa Ibom, Bayelsa, Delta and Rivers, as being more than the 19 states put together.One wonders what kind of federation we would end up with, if this situation is escalated by the new PIB.” Also, the North is angry that if the new PIB becomes operational, “it would not only affect assets of the whole federation, but would also seriously impact on the inflow of revenue into the Federation Account. In addition, northerners are worried that the proposed new legislation “could be drafted and forwarded to the National Assembly without the input of, or due consultations with the federating states.”

The North only stopped short of accusing the Jonathan administration of fiddling with the original draft of the PIB submitted in 2010 to the National Assembly by the late President Umaru Yar’Adua. On accruable royalty, the North expressed great concern that “leaving the question of the determination of royalties to the regulatory discretion of the Minister of Petroleum Resources is not only dangerous for the nation, but also an open invitation for phenomenal corruption in the future.” In the document, the North expressed dismay that divestment of equity and setting up a national oil company and national gas company is designed to exclude the region because “the communities and businesses in northern states are not very active players on the Nigerian Stock Exchange (NSE).

Offloading equity of these national assets on the stock market, the North said could “lock the people of the region out of ownership of these critical resources.” Back in the Senate yesterday, lawmakers rejected a motion for the commencement of general debate on the draft law which would have kicked off the crucial second reading. The legislators especially those from the North, refused to allow the Senate Leader to go ahead with take on the PIB, which would officially kickstart the debate. On four occasions, Deputy Senate President Ike Ekweremadu who presided over the session, strove to convince his colleagues to allow Senator Ndoma-Egba read just the lead debate and four times, Senators rejected the request. Shouts of No! No! No! rent the chamber. Ekweremadu hit the gavel continuously to restore order and also persuade his angry colleagues, but they did not budge. Ndoma-Egba reminded them of the importance of the bill and the fact that it had been listed for consideration on the day’s Order Paper.

He said that shelving debate on the bill will send a wrong signal to Nigerians who may see the Senate as not being committed to passing the bill, considered as vital for the much-needed reforms in the oil and gas sector. The Senate Leader had prayed his colleagues to allow him take the lead debate after which the Upper Chamber will adjourn and take full debate the next legislative day (which is today). His entreaties, however, did not succeed, as the lawmakers mounted pressure on him to stand down his motion after which further consideration of the bill was deferred till another legislative day instead of the next legislative day.

To further drive in Northern opposition to the PIB debate yesterday, Chairman of the Public Accounts Committee, Ahmad Lawan, interjected with a motion predicated on Order 56 (12) (d) of the Senate Standing Order. He said that the bill requires more than a day’s debate and would require “at least three to five days and in the mood of the nation, we should stand down this bill till another legislative day.” At this point, the Senate Leader got up and said: “ I’m minded and guided by the mood of the Senate. The circumstances under which this bill was introduced should not be lost on us.

We shouldn’t forget so soon…Let’s stand down this bill till another legislative day.” Deputy Minority Leader Sani Yerima seconded the motion which was deferred to another legislative day.

hercules07: Gbawe take your time o, dont you know that our society is stratified, do you want putative Otunbas to jump on you?

oyb: Otunba gani adams

Wahala dey o

Standing5: if i must add, so far the man has done well, But it will be better if we still get to know what the N22Billy is going to do. At least the majority of it.

Osun to raise N30bn from Capital Market
TUESDAY, 28 AUGUST 2012 00:00 REMI FEYISIPO


Osun State Government has revealed that it is set to raise a N30 billion bond from the capital market, in order to finance developmental projects.

Commissioner for Finance,Economic Planning and Budget,Wale Bolorunduro who disclosed this in Osogbo, during a chat with BusinessDay, said arrangements had reached an advanced stage and awaiting the approval of the Federal Ministry of Finance and the Securities and Exchange Commission (SEC) adding that “in the next one month ,we will hit the capital market.”

He also said the bond would be used for viable projects like roads, especially the road linking the state capital,Osogbo to Gbongan, observing that the road was bad and an embarrassment to the state.

Apart from this, he revealed that roads in major cities of the state would be done like the Osogbo /Iwo road, as well as other viable roads which are meant to boost commercial activities of the state.

Lamenting infrastructure decay in the state, Bolorunduro stated that the bond would be used for other developmental projects,especially dilapidated school buildings

Demdem: No doubt investors have full confidence in the administration of ogbeni Aregbe.

bilms: No matter what ,unity shall prevail in Nigeria.

It pained me to see that things are fast falling apart in Nigeria. Many death are being recorded,bombing is taking places uncontrollable,kidnapping all around, even student union are now kidnapping candidates before election,armed robbery in high magnitude,demolition of houses without provision,banning of Okada;s without creating alternative jobs etc.

Frustration is growing,youths are angry,under graduates are scared to graduate,graduates are walking around the street with no jobs,corruption in its peak,reckless spending from government,oppressive acquisition by religious religious leaders,increased religious and ethnic sentiments and propaganda spreading far and wide. The divide is being promoted,but no matter what, No matter what ,unity shall prevail in Nigeria.

The togetherness of Nigeria was designed by God, he has kept us together against all odds and he shall continue to do so.

We are destined to overcome every challenges and build a greater nation.

I urge you all to join in promoting goodness and love.

Thanks

CFCfan: Fellow N'landers, please let us structure our arguments on the economic viability or otherwise of this proposed Deep-seaport. Yoruba/Igbo state of origin or the definition of a true Lagosian, are not the important issues here.

Thanks.

Osun to raise N30b bond to fund infrastructure projects
POSTED ON MONDAY, AUGUST 27TH, 2012


Photo : Aregbesola

By Rotimi Durojaiye Group Business Editor, Lagos

The government of Osun State at the weekend indicated its resolve to raise a N30 billion bond from the capital market to fund its infrastructure projects.

Commissioner for Finance, Economic Planning and Budget, Dr. Wale Bolorunduro, who disclosed this during an interaction with Business Editors at Osogbo, the state capital, said the process has reached regulatory level at the Securities and Exchange Commission (SEC).

According to him, the bond with seven years long term payment would be utilised to fund developmental projects like roads, housing, water and agriculture.

Bolorunduro listed the Gbogan-Osogbo, Osogbo-Iwo roads among those to be given priority by the government after accessing the bond.

He said all documentations on the credit had been perfected and that it would be ready within the next one month.

The Commissioner explained that approaching the capital market is one of the best methods of funding developmental projects, stressing that “it is suicidal to do developmental projects with commercial loans”.

He said the state government is looking for long concessionary loans from global financial institutions like the World Bank and China Exim Bank.

Bolorunduro said with the automation of the internally generated revenue (IGR) process by the Ogbeni Rauf Aregbesola’s administration, the state’s IGR has gone up from N300 million monthly when the government took over power to N600 million monthly.

He said the government has succeeded in blocking all leakages in the areas of agriculture produce and forestry.

According to the Finance Commissioner, the government of Osun State is looking beyond PAYE (Pay As You Earn) as the only source of revenue generation, saying that it has come up with modern and robust methods of making money.

He added because the government has been sensitising the general public on its developmental programmes, high net individuals now come around to pay their taxes.

Bolorunduro made it known that the government’s five-year revenue generation target for the state is to attain N21 billion per annum.

In his words, the plan in the medium term in 2015 is to be at par with Lagos, and that the state is eager to use physical strategy to improve its local economy.

He said because of the deliberate attempt of government to spend more money on capital projects, it earmarked 56 percent of this year’s budget for capital expenditure with the balance of 44 percent for recurrent expenditure.

Bolorunduro added that the strategy in future is to set aside 70 percent for capital expenditure and 30 percent for recurrent expenditure.

He said the government has achieved more than 60 percent performance on the 2012 budget.

Osun N22bn bond offer over-subscribed
TUESDAY, 18 DECEMBER 2012 08:34 REMI FEYISIPO

The Osun State government N22 billion bond offer at the capital market was over-subscribed by more than 100 percent.
The state went to the capital market to raise N22 billion but eventually realised N45.1 billion which translates to over N100 percent over-subscription.

This was revealed in Osogbo, the state capital, at the completion ceremony between the state government and the joint issuing houses for a N30 billion – 14.75 percent fixed rate development bond (tranche 1) due in 2019.

Wale Bolorunduro, commissioner for finance, said the N22 billion bond also received 78 entries, which represents another unparalleled record in the annals of capital market transactions.

Also, the state’s bond issue also changed completely the face of the capital market with over 60 percent of the subscription cornered by the Pension Fund Administrators (PFA). This scenario represents a departure from the past in which offerings were dominated and snapped by the banks that normally played crucial roles in bond issuance.

Government said that this development validates the level of confidence long-term fund investors placed on the state.

Speaking at the ceremony, Governor Rauf Aregbesola noted that the confidence did not just come but for the prudent management and financial engineering of his administration.

He described the transaction as a landmark bond, which has recorded a lot of firsts in Nigeria, saying that for the first time, the state was rated with bond rating of A and A-. Besides, since the creation of the state in 1991, it had no account but within 24 months of his administration, a standard accounting record was put in place, which Augusto rating agency few months ago rated A-.

All these successes, Aregbesola attributed to accountability, transparency and prudent financial system developed by his government, saying this would have been a mission impossible some years back.

He revealed that his administration met an insolvent state, which could not even meet its statutory obligations, saying his government had to source for a billion naira to meet these obligations.

“When we were to begin this, it was as if we were going on an impossible journey. And this is for a good reason: we met an insolvent state, a state that must pay more than N1 billion to meet its statutory obligations.

“The sheer impossibility of this was what informed the misread or the hallucination of the opposition in citing all sorts of figures. First, they said we are taking N200 billion. Later they said N150 billion. The last figure they quoted was N7.5 billion.

“The sheer impossibility of our efforts informed the hallucination. They just want to attack without having the correct information. I am happy that we are confounding them and we shall continue to confound them.

“This state, since its inception, has no account. And a government that is just 24 months old could develop an account that Augusto and Co. and the other rating agencies could rate A and A-, this is amazing. We must congratulate ourselves for such sudden flight that attracted the highest corporate and financial affection as we now get at the capital market.

“I want to tell our traducers, who would always want to see evil in us and what they could profit from it, better think twice that this collection of the best in Nigerian financial industry cannot be here for the fun of it”, Aregbesola said.

He noted that it is an uphill task taking a state from zero or sub-zero level to an enviable height where the capital market and Securities and Exchange Commission (SEC) could vouch for it.

Speaking on behalf of the joint issuing houses, Taiwo Okeowo said that it was in recognition of the successes recorded by Aregbesola’s administration that the offer was over-subscribed by more than 100 percent.

OMABYK: I really sympathise with Yakuwa's family. But I dont think that is enough reason to make the wife the deputy gov of Kaduna state. Let them allow her to mourn her dear husband. If this should be allowed to become the norm am afraid guys in political offices should be careful most importanly if they have greedy wives.