Kwara to obtain N20b from capital market

In from Ali Smart . . .
In efforts to shore up its finances, the Kwara state government has hinted of plans to obtain a N20 billion bond from the capital market.
The bond if approved by the state House of Assembly will be used to execute capital projects, the state government said.
Addressing reporters on Tuesday at the end of the first executive council meeting, in Ilorin, the state capital, Commissioner for Finance, Demola Banu while justifying the need for the bond, said the drop in the federal allocation had incapacitated many states across the country.

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He said: “Few months ago, we were earning N3.4bn monthly, as a t today, the last allocation we had about N1.4bn. Definitely this cannot meet our monthly commitment. Our monthly commitment is N2.4bn to pay salary alone. Clearly we need to consider other alternatives of funding our capital projects.
“We considered the implications and so many options we have. The state government cannot afford to just sit down and not do anything.”

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