Recently, the Kogi state government approached the state House of Assembly to source for N20 billion bond to provide critical infrastructural in the state. The issue has generated heated debate on the imperative of going to the capital market for such a venture.
The issues also center on the transparency and accountability, considering the possibility of such huge amount finding its way into private pockets of some government officials.
At present Kogi state is indebted to the tune of N39 billion in both domestic and external loan, according to the recent figure released by Debt Management Office (DMO), which was incurred by the previous administration. The state would now be devoting 20 percent of its own share of the federal allocation to debt servicing with huge infrastructural deficit both in human and physical development.
Kogi state happens to be the most backward state in the country, when compared with other states created alongside it 20 years ago. Hence, all measures must be put in place for this administration to ensure judicious use of the bond to be sourced from the capital market.
The expectation of all and sundry is for the state to find another source of generating revenue to augment other funds accruing to the state.
We believe Governor Idris Wada's handling of this bond would go a long way in clearing the mind of doubting Thomases about the need of sourcing the loan from the capital market.
We hope the bond would bring the people of Kogi development, progress and general infrastructural development that the state has been yearning for since its creation.