The government of Ekiti State has announced plans to submit quarterly report on the outcome of its bond to the Securities and Exchange Commission and other relevant regulators.
This, the state said, would be done in a bid to ensure that it kept in line with all its promises and all the rules and regulations governing its recent bond issuance programme.
The Ekiti State Governor, Dr. Kayode Fayemi, announced this while ringing the closing bell to commemorate the successful listing of the Ekiti N20bn bond and to signify the end of trading at the Nigerian Stock Exchange on Tuesday.
While noting that the bond issuance would go a long way to address the infrastructural deficit in the state, the governor noted that the proceeds of the bond would be channeled towards projects that were economically viable for the state.
It would be recalled that the NSE had last month approved the listing of the state’s N20bn bond which formed part of its N25bn bond issuance.
Fayemi said, “Already, a total of 12 road projects have been awarded and we hope to be able to fund these projects to completion with the proceeds of the bond, as well as the development of Ikogosi warm spring; construction of ultra modern civic centre in Ado Ekiti and construction of ultra modern market in Ado-Ekiti.
“Other projects include the construction of the Lagos Liason Office; construction of new Governor’s office; and rehabilitation and expansion of Ado-Ekiti Water Works; Ero Water Works and the establishmentof the state School of Agriculture, among others.â€ÂÂ
Continuing he said, “We are doing all we can to ensure total transparency in all the projects and have ensured that the projects would be closely monitored by SEC and other relevant regulatory bodies.â€ÂÂ
Fayemi, who was accompanied by senior members of the state executives, explained that the decision to source for fund from the bond market was borne out of the administration’s commitment to the rapid transformation of Ekiti State.
“It will be noted that infrastructural development is a major component of our eight-point development agenda for the state, and before the inception of this administration, we were aware that the low revenue accruable to the state would not be able to cope with the high level socio-economic development of our dream hence the need to access funds from other sources outside the routine revenue available to the state.†he explained.
The Chairman, Association of Stock-broking Houses of Nigeria, Mr. Emeka Madubuike, commended the governor for the initiative, stating that it was good for states to patronise the capital market for funding their infrastructural needs.
Source: Punch/Udeme Ekwere