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Published On: Tue, May 13th, 2014

N23bn bond: Kwara govt to spend N7bn on Ilorin water project

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From Olanrewaju Lawal, Ilorin

The Kwara state government has confirmed that it would spend N7 billion out of N23 billion bond being sought from the Nigerian stock Exchange (NSE), to complete the on-going Ilorin water reticulation project.

The government also disclosed that N5.4 billion of the bond, in addition with N2.383 billion internal fund, will be expended on the construction of Kishi-Kiama Federal Government road, while education and new projects embarked upon by present administration would be catered for.

Addressing journalists at a press conference yesterday, in Ilorin, the Commissioners for Works and Transport, Finance, Dr. Amuda Kaninke and Eng. Demola Banu, alongside the Senior Special Adviser (SSA) to Governor on Investment, Mr. Abayomi Ogunsola said the state government is running a transparent administration and would not go outside the approval of NSE.

Speaking on the project, SSA Investment, Mr. Ogunsola said the project, which had commenced from the immediate past administration under Dr. Bukola Saraki, added that N1.2billion had been expended from the previous bond of N17 billion sought by Saraki’s administration, while the remaining N5.7billion will be deducted from the new bond to complete the project.

He explained that the NSE would never lend any state government bond if it realised that such government lacks the capacity to repay it.

The Commissioner for Works and Transport, Dr. Kaninke disclosed that the Kishi-Kiama road, which is a Federal Government road, when completed, will serve about 223,000 people living in 30 communities in the area.

In his finance analysis, the Commissioner for Finance, Eng. Demola Banu disclosed that the N17 billion sought by Dr Bukola Saraki administration will be fully repaid on first week of August,2014, while the N23 billion bond on processing at the security market will be repaid within a period of seven years.

Banu said the state government will be making N500 million saving on every month from the N23 billion bond repayments, stressing that NSE had verified all projects designed to be executed with the bond and government would not go outside those projects.

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