KOGI: TOO MUCH ADO ABOUT A BOND I have read with a smile some of the things that have been said about the proposal of the Kogi state government to issue a bond. Cynicism is understandable, indeed even forgivable in a country where the people have held the short end of the stick for so long. For many Nigerians, Kogi people inclusive, government can only do one thing well - lie through the teeth. So what way to go? Is it possible that government might ever tell some truth, sometime, if not the whole truth all the time? Is it possible that at some point and with some of our leaders, politics does actually give way to governance? How can anyone be convinced that government-speak is not simply another name for robust propaganda that is self serving and destructive. Indeed is it possible to see government as pro and not anti people? I must confess that even I am cynical of government. And no, dont laugh or sneer at me. I too am a citizen with full citizen rights including the right to be cynical of government. But after a year and a half or so, of sitting on this side ( that is the government side) of the negotiating table in governance, I must confess that I am better schooled. No, not every government person is a rogue armed with a pen or these days a computer, waiting to rob the unsuspecting public of the common wealth. True some of us havent made life easy for everyone but there is a lot more sincerity in official chambers than many of us are willing to give the leadership credit for. Like the case of the proposed Kogi State N20 billion bond. I thought borrowing bulk money to meet an immediate need and paying back over a period of time is elementary economics. In the days of more robust companies and government, it was common place to see staff take car loans and housing loans to meet the pressing needs of either buying a car or paying ones house rents. Till date the concept of mortgage loans follow the same principle. Borrow bulk sum and pay gradually with deductions from ones salary. In simple terms this is what the Kogi State government intend doing. For a government with strong, viable and purposeful vision for its citizenry, it is no crime to function with other peoples money. If anything, it is good business sense. You borrow bulk to take care of critical projects and pay gradually over time little bits. The long term benefit is completed projects on time, reducing the possibility of inflation catching up with the project and even stronger ratings earned by paying back. But even more important is the fact that taking a bond is no piece of cake, more so in a strong regulatory environment. But I agree that the people have a right to ask questions and even query the wisdom of government. In the same vein, they must listen to sound argument and good opinions should give way to better. For avoidance of doubt, Captain Idris Wada has made a promise to tell Kogi people exactly how much each project to be funded by the bond will cost. All of these projects will be subjected to due process, government will consistently open its books to show how monies are being expended. That is a responsibility the Capt. Wada administration takes seriously and one it intends to judiciously follow. Why should you trust the Captain? Because he did promise you transparent and accountable stewardship, anchored on integrity and good governance at the beginning of his tenure in January 2012, and somehow, warts, pimples and all, he had kept faith with that promise amidst lingering litigations and distractions. BOND IS A PECULIAR TRADITION IN GOVERNANCE AND WHY THE BROUHAHA IN KOGI? ***Lagos gets SEC approval for N87.5bn bond: The bond “will contribute to the completion of ongoing infrastructure projects to enhance the provision of social services aimed at improving the living standards of Lagosians,” the state Commissioner for Finance, Mr. Ayo Gbeleyi, said in the statement. ***Oyo state to float N30bn bond to finance budget: The Oyo State Government is to float a N30 billion bond for the implementation of the 2013 budget, the Commissioner for Budget and Planning, Olaniyi Olarinde. Olarinde gave the information during a breakdown of the budget in Ibadan. ***Akwa Ibom to raise N200b from bond market - Guardian ***But even as investors are angling for federal bonds, the Bauchi State Government has concluded plans to float a N40 billion bond to raise funds from the capital market to augment its dwindling revenues. The state Commissioner for Finance, Aminu Hammayo cited persistent decrease in the revenues accruing to the state from the Federation Account as the reason for the bond. I can go on and on, educating you on how many states in Nigeria raised bond, so why shouldnt Kogi go for it? Unlike his colleagues, Captain Idris Wadas demand was considerate, moderate and humane and will go a long way not to plunge the state into huge debt. Sentiments and cynicism is had beclouded good judgement. People desist from seeing anything good in the government of the day. But for how long shall this unbiased judgement continue? KOGI STATE IS WORKING.
Posted on: Mon, 11 Nov 2013 11:46:39 +0000
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