Adamawa state Commissioner for Finance and Economic Planning, Dr.Ishaya John Dabari, has said that the proposed bond to be floated by the state government is geared towards growing the economy, improve its Internally Generated Revenue (IGR), provide employment opportunities to the teeming youth and safe the state from huge debt and interest associated with banks, loans among many other benefits.
He made the clarifications Thursday in an interview with journalists in his office when he listed some of the benefits the state stands to gain from the initiative.
He stated that the bond is sought by the state government, specifically to be invested in agro businessman which is the main stay of Adamawa economy that will include cattle rearing, meat processing, crop production among others.
He further noted that the bond will also be used to provide modern facilities and infrastructures in Mubi, Ganye, Fufore, Ngurore cattle markets among others to make it more viable and to an international standard which will generate more revenue to the state.
He said the initiative will not further put the state in debt as being speculated by opposition but will save it from huge interest and short time repayment period associated with bank loans as bond in the capital market.
Dabari added that, although the state intended to float N100bn bond but may end up in N50bn or less as the bond is not to be accessed completely but spread in four trenches of N25 billion each year for the next four years.
He noted that investment in the agro businesses will yield more revenue for the state which will make it unnecessary for the state to access the bond completely as planned.
Other benefits the state stands to gain from the bond, according to the commissioner, includes employment generation to the teeming youth, improvement in IGR, reduction of huge interest rate on the state by bank loans among other benefits.
He noted that within just two years, they have improved the IGR from N250 -N350 million monthly. They inherited N700 million and their targets is to make it N1billion by the end of this year.
He lamented the misused of loans collected by previous administrations without visible projects on ground to show for it. He added that the present government inherited over N140 billion and has so far collected only N15 billion.
He said with so many projects to show for it, the bond will be prudently utilised for the benefit of the state and Adamawa people will have value for their money as always demonstrated by the governor.
