The Kwara State government has denied a newspaper report that it has abandoned plans to secure a N10b bond for its forthcoming infrastructure projects in the state.
The state governor, Alhaji Abdulfatah Ahmed, in a statement by his Senior Special Assistant on Media and Communications, Dr. Muyideen Akorede, maintained that the government’s plans to secure a bond remains on course as captured in the 2016 budget.
Governor Ahmed clarified that the state government has only reduced the proposed bond from N20bn to N10b in view of the drop in federally allocated funds to the state by about 50 per cent.
He said based on current FAAC and IGR levels, the state government can only afford repayment on a N10b facility, stressing that the government will access the second tranche of N10b as soon as its finances improve.
Governor Ahmed, who stated that the government will continuously seek avenues for cheap funding for its development programmes, said all future borrowing will be based on capacity to repay without constraining its ability to meet other obligations such as salary payment and funds for ongoing projects.