June 15, 2009 at 16:01 GMT
The Ogun State Government (OGSG) is to issue bonds on the Floor of the Nigerian Stock Exchange (NSE). Otunba Gbenga Daniel the Executive Governor of the State confirmed this during his visit today to the NSE in Lagos Nigeria.
“Bonds that we seek have not been designed for any single particular location. It has been done and structured in such a way that all the nooks and crannies in Ogun State will benefit in one way or the other” he said.
However, Otunba Daniel as at the time of filling in this report declined to confirm the amount the State Government is seeking through the proposed Bonds issuance.
“The issue of what we want to do with the money and other details, is not what I can disclose here; we have submitted what we refer to as the general presentation, it is now the work of the Advisers; after they have received the approval from the Stock Exchange, they will now begin to advise us from their perspective; because at the end of it, we are talking of returns” Governor Daniel said.
He affirmed that it would be impossible to finance the type of long term developmental projects of Ogun State within short term credit at a positive rate.
“The whole importance of the Bond is that we are having the same money at relatively attractive conditions” he affirmed.
This is coming on the heels of reports of legislative squabbles between the Governor and the State House of Assembly on the issue of barring all financial institutions from advancing any loan, credit facility or bond to the Ogun State Government.
Honourable Babatunde Oshin, Chairman of House Committee on Information, had been reported to have affirmed that the Assembly has barred all financial institutions, the Federal Government (FG), Banks, the Securities and Exchange Commission (SEC), the Nigeria Stock Exchange (NSE) and Registrars of Financial Security from further advancing any loan, credit facilities or any instrument financial bond to the Ogun state government, “financial institutions can only ignore the resolution at their own peril, he said.
In his reaction to this development, Governor Daniels affirmed that his government has done all within the rules of law and legalities to qualify and take part in the Bond Market.
“I don’t think you should worry so much about Politicians, let’s look at the rule of law and legalities, and we have done what we need to do to qualify and take part in this Bond Market, I submit with all the emphasis at my disposal that we have done it 100 percent (100%)” Otunba Daniel said.
He further affirmed that the State Government has done it carrying all the stakeholders of the State along.
“Carrying them along does not mean that we can persuade all of them; I want to confirm to you that if you heard anything in the media, recognise such as struggle for principle; the other people also have the right to stand on their principle” he said.
He also asserts that what is going on in Ogun State is a health development, “do not get excited about it, it is democracy at work” the Governor affirmed.