Ogun govt to issue N60bn development bond.

Friday Ekeoba, Lagos - 16.06.2009
FOLLOWING its aspiration of becoming a cosmopolitan city, the Ogun State government, on Monday, formally approached the Nigerian Stock Exchange (NSE) to raise N60 billion for capital projects development.

Also, the state government has dismissed a resolution by the state House of Assembly barring it from sourcing for fund, describing the moves by the lawmakers as a mere games and political struggle which was of good for the health of the state.

Chief Gbenga Daniel, who led the state’s economic team, which was the brain behind the bond issue, to the floor of the exchange, said contrary to reports, the fund to be raised was aimed at developing every part of the state for the betterment of the people.

However, as at the time of filing this report, the NSE was yet to give its accent to the demands of the state government as it was still going through the five-year financial records of the state submitted to it, being one of the requirements for fund raising by any institution.

Although, Chief Daniel did not disclose the amount of money the state would be sourcing from the stock market, a close source in the government said the bond issue would be about N60 billion and whose tenor/maturity date would be in the interest of the investors.

Describing the bond issue as part of the futuristic master plan of the state government, Daniel informed financial stakeholders that investors have nothing to worry about as the the government led by him was a credible one with integrity.

According to Chief Daniel, the proceeds of the bond issue, which would be employed to transform the state into an economic hub, would be expended on proposed projects which include the Cargo Airport, Deep Seaport, tourism and further develop the education sector, as well as construction of more roads.