By: Araakurin Bolakale
September 2016 birthed one of the most celebrated programs of the last administration, InfraFund – Kwara. It’s an infrastructure funding model of the last government developed to address the huge infrastructure deficits without incurring debts.
The Abdulfatai Ahmed govt claimed that the entirety of state’s Internally generated revenue (IGR) is being used for recurrent expenditure while all capital expenditure is funded through capital receipts and debts. In order not to strengthen the debt profile of the state and reduce the infrastructure deficits, IF-K model become essential and was developed.
A regulatory framework was equally through the Kwara state Public Private Partnership of June 2015 was developed for the model and the became operational in September, 2016.
According to former Governor Ahmed, The fund (IF-K) will be financed through a N5b seed fund and a N500 million monthly contribution from the state’s Internally Generated Revenue through an Irrevocable Standing Payment Order(ISPO).
The Inaugural Management Report from Sept 2016 to December 2017 was published last year and following points were established.
As at 31st December 2017, the total inflow on the model’s account was 13BN. This comprised of Seed Capital which was 3.7BN against the proposed 5BN, monthly contributions through ISPO 6.8BN and other contributions of 2.5BN.
On the other hands, 11.33BN was the outflow comprised of Project investment of 11.04BN and Investment fees and expenses that was 0.29BN.
In addition, as a investment friendly govt, unutilized portion of the money was invested and the Return of Investment as at Dec. 31st, 2016 was 1.12BN with minimum 30% of fund balance BUFFER which was (837.12M). This caused the closing balance to be 1.95BN which was carried forward to 2018.
In 2018, some of the capital expenditures were funded and they are
– Provision and installation of street lights in Ilorin Metropolis N35,176,500
– Construction of infrastructure underpass, Kulende UITH road 1.378BN
– KWASU Satellite campuses gulped N840,458,301.22
– Contractual Obligation for ongoing project 2.107BN.
The Management Report for 2018 hasn’t been published up to the time the current government took over in May 2019. Our findings revealed that IF-K program was part of the report handed over to this government but it’s surprising that this Government hasn’t made any statement about the program.
Meanwhile, I want to humbly appeal to the current government to respond to the following questions which are part of yearnings and interests of kwarans.
1. Is IF-K still operational and the ISPO that allow deduction of 500m from the state IGR still effective?
2. What’s the financial status of the program as at the time this govt came on board?
3. How true is the rumour that this government hasn’t touched or done anything about the state IGR since they came on board and what’s the state of our IGR?
4. Provided that the program and its elements are still in operation, the account of the model was expect to have about 4BN balance, avail us the fact sir.
5. Lastly, what’s the plan of this govt on how to address infrastructure deficit in the state?
May AA Succeed.
I’m Araakurin Bolakale,
A gentle boy from Ilu Alfa Alimi.