N100bn Bond: Oyo Government Has Become A Father Christmas Seeking To Fund A Project It Won’t Be Getting Payment For– APC
The All Progressives Congress in Oyo State has lampooned the Seyi Makinde led administration on the N100bn bond which was approved by the State Executive Council on Tuesday.
The opposition party in the state made it position known in a release signed by the Publicity Secretary, Dr Olatunde Abdulaziz
”the reason behind our surprise was because, here was a Governor who promised to take Oyo State Finances away from relying on Federal Government monthly allocation within 6-12 months of assumption of office”.
” This is the Governor who bragged in his inauguration Address of exporting Maize to Botswana to attract foreign exchange to boost Oyo State Internally Generated Revenue (IGR) and infact a lot of Campaign Lies to get peoples votes”.
” This is the Governor that was shouting on the Roof Top of meeting Debt from his predecessor,in the early hours of assumption of Governance, thinking that his own Government would not add to the Debt profile of Oyo State at all”.Forget the semantics. Oyo State is Borrowing #100b Again”.
“Honestly, in the business of governance, there’s nothing bad in borrowing in as much there are commensurate projects that will fund the debts.How do we explain seeking #100b bond when we are yet to see anything tangible to point to for the already accrued N39. 5 billion debts”.
“You may ask what is a Bond? .A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental”.
” Oyo State Government’s decision seeking to finance projects in the magnitude of the Ibadan Circular Road by directly seeking for loan is laughable, misleading and undoubtedly shows signs of no foresight”.
“Interestingly, there was a contractor in place as at 29th of May 2019,when Governor Makinde took over. The Company, ENL Consortium has committed about #7b to the Ibadan Circular Road Project”.
” Why revoking the contract which is based on Public Private Partnership(PPP) Model, and the Government attempting to seek for loans to finance the same project?”.
“Retrospectively, the Governor who demonstrated his naivety in business of Governance on an occasion of one of his visitations to the sites last year, ordered the contractor, ENL Consortium to “stop work”. It was when he was schooled that a “Government does not have power to stop work on a project it’s not financing, that the he had a rethink”.
“World over, Public Private Partnerships(PPP)is the order of the day, especially for projects which can’t be funded by Government 100%. It was in that wisdom,that the Abiola Ajimobi’s Government adopted the model of Public Private Partnerships in ensuring that the Ibadan Circular Road Project got commitment in funding as deserves”.
” The project is to be operated on “Build-Operate-Transfer”(BOT)Model where ENL Consortium will source for the funds, toll it upon completion and transfer it to the Government having realised their invested fund without interference”.
” It’s this same model that was used for the Lekki-Epe Road and other projects of such magnitudes in Lagos and other enlighten States and abroad”.
“Aside the Ibadan Circular Road Project,the Oyo State Government is seeking to commit part of the Bond to financing the Ibadan Airport. This is quite laughable and another insensitive move”.
“If Oyo State Government is really committed to the upgrading of the Alakia Airport, lobbying of the Federal Government through FAAN should be the best approach”.
” The Federal Government recently through the Minister of Works, H. E, Mr Babatunde Fashola(SAN) gave a standing order that the State Governments shouldn’t undertake projects under the Federal Government purview,else the State concerned won’t be paid for the projects”.
“One can begin to ask that,is Oyo State Government another Father Christmas, seeking to fund a project it won’t be getting payment for?”
“At a time we are yet to see the value of the N7.6b loan for Akufo and Eruwa farm settlements.
At a time we are yet to see the impact of the N22. 5 billion infrastructure loan,seeking for a Bond to the tune of #100b is the most insensitive step at this stage, committing Oyo State treasury to refunding #100b loan whether in short term and long term is amateurish, especially as it concerns public finance”.
” Finally, if the Government of Engr SEYI MAKINDE eventually cornered the N100billion LOAN. The Government of Engr SEYI MAKINDE would have successfully increase Oyo State Debt Profile by adding N139.5 billion within two years”.
“How much Debt would the Government of Engr SEYI MAKINDE plunge Oyo State to before winding down?”. He concludes.