Kogi State Government recently approached the state House of Assembly to source for N20bn bond to carry out some aspects of development in the state.
The N20bn bond has generated heated debate bordering on the imperative of the state in seeking for such in the capital market.
The debate addresses issues of transparency and accountability, particularly as some corrupt government officials can mismanage the money without using it for what it was intended for.
At present, the state is indebted to the tune of N39bn according to the recent figure released by Debt Management Office in both domestic and external loans, which was incurred by the previous administration.
The state is now devoting 20 per cent of federal allocation to debt servicing with huge infrastructural deficit both in human and physical development.
I think what should concern the state more at the moment is how to settle its debt profile.
The expectation of people is that the state should find other sources of generating revenue to augment what is accruable to it as a monthly allocation.
I believe that how Governor Idris Wada handles this bond issue will go a long way in determining its justification.
Some states in the country did source for bond for the overall benefit of the people in their states. We do hope Kogi will do the same.
At the end of the day, Let’s hope the people of the state will be happy about the bond.
Bala Nayashi, No. 1 Yashi Area, Lokoja.
