Governor Ibikunle Amosun of Ogun State has announced his administration’s plans to approach the Nigerian capital market to raise funds to execute capital projects in the state.
Amosun, who spoke during a visit to the Nigerian Stock Exchange, NSE, last week, stated that this would be done through the issuance of bonds. He however did not reveal how much would be raised through the exercise.
He explained that the improved financial position of Ogun State and key policies implemented by his government has put the state in a better position to access funds from the capital market.
According to him, when he assumed office in 2011, Ogun State was raking N700 million monthly from Internally Generated Revenue (IGR), but now, the state earns between N6 billion and N7 billion monthly as IGR.
“It is now I know the state can fulfill the obligation of raising bond. We need long term funds to develop infrastructure and we know you are the one to help us, I know when we come, you will help us,” Mr Amosun, who was accompanied to the NSE by Speaker of the Ogun State House of Assembly, Mr Suraj Adekunbi, stated.
The Governor explained that he visited the NSE to “see opportunities in the Nigerian capital market and I know that there is always opportunities in the capital market but you don’t jump into it, you need to prepare yourself.”
“There are some responsibilities that go with coming to borrow money, so when you are in position not to fulfil those obligations, there is a crisis.
“We have taken time to address certain things, because need to operate from a position of strength before we begin to say we are coming to the market,” he added.
In his remarks, Chief Executive Officer of the NSE, Mr Oscar Onyema, disclosed that the stock market regulator was looking forward to collaborating with the state on many fronts.
