By Nahum Sule, Jalingo
The Special Adviser to the Taraba State Governor on Finance, Dr. Murtala Yusuf Fortyfour has clarified that the state government has yet to access the capital market for the proposed ₦350 billion bond.
Speaking on the development on a telephone interview with our correspondent, Dr. Murtala stated that although discussions are ongoing regarding the bond issuance, the state has not entered the capital market to secure the loan. He emphasized that the process is still at the planning and advisory stage.
Dr. Murtala also revealed that the issuing of bond as against taking commercial bank loans is a good idea because the bond has a longer tenure and lower interest compared to commercial bank loans.
“Part of the bond proceeds will be used to liquidate the existing commercial bank loans while the balance will be used for developmental projects,” he said.
He further highlighted that Bond is not like a commercial bank loan where an applicant would just write an application letter or fill the necessary forms, and fulfilling other conditions would just get disbursement. Bond requires a lengthy process involving regulatory agencies and also a six weeks advertisement on national dailies, so it can’t be done in a hiding.
“I am in support of His Excellency’s decision to opt for a bond because it provides a longer repayment window and lower interest which would ease pressure on the state’s finances.
“The idea is to use part of the bond to repay any existing short-term facilities and deploy the remaining funds toward critical infrastructure and developmental projects across the state.”
He further noted that the bond, once secured, will be transparently managed and targeted at long-term capital projects that will drive economic growth and job creation in Taraba.
The statement comes amid growing public interest and scrutiny regarding the state’s borrowing plans and long-term fiscal strategy. He further debunks the allegations that the state has accumulated a total debt of 1 trillion naira in 2 years, stating that it’s vague and mere propaganda.
