The Kwara State Government says the state has been certified by the Debt Management Office (DMO) as being financially healthy to take above N35bn loan.
This was contained in an article titled “On Kwara bond and other issues” by the Chief Press Secretary to the Governor of Kwara State, Rafiu Ajakaye on Thursday.
On the bond proposal by the government, Ajakaye stated that they got a parliamentary approval to raise N35bn, but has only raised N27bn at extant 15% market rate.
He further disclosed that DMO – the national statutory body that regulates lending by the national and subnational governments in Nigeria – said Kwara is solvent and can easily pay back.
He said, “The administration has cut waste and cannot in good conscience be accused of profligacy. It has earned itself various cognomen for ending the corrupt, unproductive patronage system of the past. Bond redemption will take seven long years, charged to the state’s monthly allocation from the federal government. Bolstered by internal revenue, the plan is such that no basic commitment of the government will be affected.”
