9 State Governors have mortgaged the Future of their citizens

An atrocity is taking place in some States of Nigeria. Just in case you don't know, Nine Nigerian States have accessed the Nigerian capital market for funds via bonds and so far have raised N108 billion from 1999 to date.

 These states claim they raise this money for the financing of infrastructure projects. When the treasury has been looted dry, the State Governors resort to borrowing. Future generations are now being saddled with bondage of debts.

The future of the citizens of those states is being mortgaged, and no one is asking questions!

According to statistics obtained from the Nigerian Stock Exchange (NSE), in the last 11 years, the nine states that successfully issue bonds between 1999 to 2009 include : Edo (1999) N1billion; Delta (2000) N3.5billion; Yobe (2001) N2.5 billion; Ekiti (2002) N4billlion (in 2 tranches of N2.5b in 2002 and N1.5b in 2004); Lagos (2002) N15billion, Cross River (2003) N4billion, Akwa Ibom (2004) N6billon, Kebbi (2006) N3.5 billion, Lagos (2009) N50 billion first tranche of a N275 billion; Imo (2009) N18.5billion bond issue is Series 1 of a N40billion Medium Term bond issuance programme.

In most of these states, the reasons for borrowing the funds were not specified. Most were classed under the omnibus heading: “for various projects”.

In fact, many more States have approached the capital market for funds, but they have not been able to access the market for long term fund (bond) because of their inability to tidy up their financial statements which is part of the conditions that must be fulfilled before approval is granted to them by the Commission.

Meanwhile, more state governors are in a race to issue bonds from the capital market include: Ogun, Bauchi, Kano, Niger and Kwara states.

 These states, last year, expressed preparedness to hit the capital market with bonds issuance so as to fund cash soaking long-term infrastructure schemes.

In Ogun State, the mad rush for bonds has assumed a theatre of the absurd.

If you are from any of the above states, what are you doing about this?