The Ekiti State Government says it has raised N5bn from the capital market, completing a N25bn bond issuance programme it started in 2011.

A statement, which was made available to our correspondent on Wednesday, indicated the state government had raised N20bn in the first tranche of the programme in 2011.

The state Governor, Dr. Kayode Fayemi, was quoted as saying at the completion meeting for the issuance of the second trance in Lagos that the bond would not put the economy of the state at risk. Rather, he said, it would enable it to achieve key developmental targets.

The governor added that contrary to claims that the bond issuance scheme would push the state into crippling debt, the projects executed with the funds raised from it would strengthen the state’s economy.

This, he explained, was because the funds were spent on regenerative projects.

He said, “The first tranche was used primarily for regenerative projects. I am sure everybody hears about Ikogosi but they didn’t know what Ikogosi was like years ago. It was full of reptiles and not a place to visit.

“But, today, in fact, in the last one week, over 10,000 people were in Ikogosi. That is one of the products we used the N20bn for.”

Other projects executed with the funds, according to him, are two road dualisaion projects, new government house, a civic centre (housing a museum, cinema and events centre) and a state pavilion meant to end the use of the Oluyemi Kayode Stadium for social events.

He added that part of the funds was also spent on the College of Technical and Commercial Agriculture, the ultramodern market in Ado Ekiti and the resuscitation of the Ire Burnt Bricks factory.

Fayemi pledged that the state government was not only going to ensure that the funds were properly utilised, it would also ensure that they were repaid quickly.

The governor, who said some projects being executed with the funds were still ongoing, stressed that the N5bn raised in the second tranche would be used to complete them.

He said, “We are focusing on projects that have investment potential and can bring Ekiti equitably to comity of nations and states. Those who sometimes criticise us out of ignorance because they think taking a bond is plunging a state and generations yet unborn into eternal debt are mistaken.

“Already, we have paid about N9.6bn out of the N20bn we took in two years. All the infrastructures being put in place will worth more than three times their present value in 10 years to come.”

The statement noted the documents for the N5bn bond was signed by all members of the state Executive Council and the stockbrokers and issuing houses involved as well as representatives of the Security and Exchange Commission and the Nigerian Stock Exchange.

The Deputy Governor of the state, Prof. Modupe Adelabu, and the Speaker, Ekiti State House of Assembly, Dr. Adewale Omirin, were also at the completion meeting.

Source; Punch (by Simon Ejembi)