The governorship candidate of the All Progressives Congress (APC) in the 2019 elections in Oyo State, Chief Bayo Adelabu, has faulted the decision of Governor Seyi Makinde to float N100billion bond to fund certain medium and long term infrastructural projects.
The State Executive Council on Tuesday approved the accessing of the bond for construction of strategic roads, upgrade of hospitals, development of Ibadan Dry Port and rail corridor, among others.
Adelabu, in a statement on Thursday, said the Makinde-led administration needed to explain the mode of repayment, warning that the bond was capable of driving the state into financial insolvency and economic slavery.
“A number of facts about this proposed bond need to be disclosed by the government for financial transparency. This will enable the stakeholders to be clear as to the real implications of this step.
“For example, what is the likely interest rate on the bond? What is the proposed tenor of the bond? What is the source of repayment of the bond? What is the regularity of interest servicing on the bond? What is the mode of principal repayment, instalment or bullet? What is the implication of a default on interest and principal? What are the financial returns on these projects?
ALSO READ: We have flattened COVID-19 curve in Lagos ― Lagos Lawmaker
“If any, who are the parties (consultants) to the bond issue? What are their commissions? What are the other issuing expenses and what is the net receivable on the bond after deducting the issuing expenses?
“These and others are the questions begging for answers. I am very sure that in the process of providing the answers, the government, the citizens and the approving authorities at the federal level will discover that this intended action of Oyo State government is either not well thought out or wicked,” he said.
The former Central Bank of Nigeria (CBN) deputy governor said much as he agreed with the Ibadan local airport, listed as part of projects to be funded with the bond, needed to be upgraded to international standard, all Governor Makinde needed to do was lobby the Federal Government through the minister and National Assembly members to have it undertaken by the Federal Government.
He noted that the Federal Government had expressed non-readiness to refund expenditure incurred by states on federal assets.
“On the circular road, what has happened to the public-private partnership arrangement left behind by our late revered leader, former Governor Abiola Ajimobi? A project of that duration and magnitude should never be funded by the state government fund. It should be handled as a commercial self-liquidating project with private sector funding on a BOT (Build-Operate-Transfer) basis.
“For the Iseyin-Ogbomosho road and Ajia/Ife road/Amuloko road listed, these are reasonably short length road infrastructures that can be gradually funded from the annual state road budget at a reasonable pace without issuing a commercial bond
“Does the government have plans to toll these roads? While I agree that these are important roads that must be done, there is no urgency in funding,” he said.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
Italian prosecutors have asked that two oil companies, Eni and Shell, be fined while some of their executives, both present and former including Eni’s Chief Executive Officer, Claudio Descalzi, be sentenced to prison in a long-running trial bordering on alleged corruption in oil field purchase in Nigeria… Read Full Story
The candidate of the Peoples Democratic Party (PDP) in the 2016 governorship election in Ondo State and a former Commissioner for Justice and Attorney General of the state, Eyitayo Jegede, on Wednesday emerged as the candidate of the PDP in the party’s primary election… Read Full Story
The Inspector-General of Police, Mr Mohammed Adamu, on Wednesday, warned officers of the force, to embrace professionalism as the law demands as well as shun illegal arrest, extrajudicial killings, torture and extortion in the country or face unforgivable sanction… Read Full Story
The Federal Airports Authority of Nigeria ( FAAN) has again condemned in strong terms the latest assault of an Aviation Security (AVSEC) staff, by the head of the Directorate of State Security ( DSS), Mr Safiyanu Abba, for carrying out his assigned duty at the Nnamdi Azikiwe International Airport Abuja… Read Full Story
The political supremacy war within the ranks and files of the All Progressive Congress (APC) took a new turn on Tuesday, as the Minister of Labour and Employment, Senator Chris Ngige and chairman, House of Representatives Committee on Finance, Hon. Abiodun Faleke threw caution to the… Read Full Story
The Peoples Democratic Party (PDP) charges the Buhari Presidency to immediately respond to comments by the Chairman of Senate Committee on Army, Senator Ali Ndume, that the Buhari administration’s underfunding of the military is responsible for the persistent insecurity challenges in the nation under its watch… Read Full Story
A former Minister of Education, Professor Chinwe Obaji, has advised the Federal Government not to yield to the pressure from a section of Nigerians, especially parents and private school owners, to reopen schools and allow SS3 students sit for the 2020 senior school certificate examinations… Read Full Story
Following the multiple side-effects associated with the use of alcohol-based hand sanitisers and some liquid soaps due to the “unsafe” active agents in them, the habitual use of alcohol-based hand sanitisers must be deliberately avoided, experts said… Read Full Story
President of the Senate, Ahmad Lawan, has said that nobody is above the scrutiny of the National Assembly. Ahmad Lawan stated this in his closing remarks moments before the Upper Chamber adjourned plenary till September 15, 2020… Read Full Story
Many months into the coronavirus pandemic, experts are giving more details about how the virus is disrupting the health and wellbeing of pregnant women. Yet for pregnant women and their unborn children, protecting them from contracting the virus is very important… Read Full Story
Onions have a plethora of health benefits to offer, from better libido, ache-free skin to improved immunity. In fact, clinical nutritionists recommend peeling and eating onion raw rather than having its cooked form because it has more sulphur and antioxidants as benefits… Read Full Story
and then