The Kwara State government and the opposition Peoples Democratic Party (PDP) are in disagreement over a plan by the government to approach the capital market to obtain a 20 billion Naira bond.
The opposition described the plan as an attempt to further impoverish the people of the state.
While the Governor of the State, Abdulfatah Ahmed, who is a member of the All Progressives Congress, believes the money will be used to further develop the state with various projects, the opposition wonders why the government has not been saving for the rainy day, querying what has been done with the previous bonds obtained.
The State Commissioner for Finance, Demola Baanu, had earlier explained that the government had decided to obtain the 20 billion Naira bond to complete ongoing projects, citing dwindling federal revenue for the decision.
The little above one billion Naira allocation from the federal Government being collected now could barely pay salaries, he said, seeking the understanding of the people.
Not Being Prudent
On behalf of the opposition PDP, the state chairman of the party, Iyiola Oyedepo, wondered how the government could continue borrowing to run the affairs of the state.
He told reporters that nearly 500 billion Naira had been collected from 1999 to date without tangible projects or positive impact on the people.
He accused the government of not being prudent when the economy was booming and wondered why government officials complain now when they were supposed to save for the rainy day.
While swearing in the last batch of the state’s commissioners, the Governor warned politicians against politicising the bond issue, as it would not affect the fortunes of the state.
He explained that the state had the capacity to repay through the Internally Generated Revenue,
Governor Ahmed also reiterated that the bond would enable the government complete the suspended projects and begin new ones that would have impact on the people.
The executive arm of the government is waiting for the decision of the State Assembly on the bond proposal before any further action.
