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Adamawa Assembly Says N100BN Agric Bond will generate N100b IGR

The Periscope reporter

* Approved N100 billion Bond based on convincing explanation; to develope the state, create job opportunities

* The bond is for the period of 4 years, N25b to be accessed every year

* Unlike loan, the interest rate on bond is fixed, does not increase.

* Part of first N25b will upgrade cattle markets, boost socioeconomic activities, improve internally generated revenue

* N15b of the first N25b billion, will be used in liquidating the loan earlier accessed from commercial bank

* N10b to upgrade Mubi, Ganye, Maiha, Ngurore, Song and other cattle and produce markets across the state

* Part of the bond will be channeled to const rural roads, healthcare centres, others

* Targets N100b IGR annually from the upgraded cattle markets

* Adamawa collects only N100 as tax a cattle, it does not generate up to N1b annually, Taraba collects N1000, Lagos collects N10, 000 on every cattle; generating about N40b annually

* Bond to be used in liquidating N4b loan obtained by LGAs in in 2006

* Granting approval on virement; Double dual carriage way will extended to welcome to Yola

Adamawa State House of Assembly has made clarifications for approving what the critics considered as bullion of N100 billion bogus bond to the state government, saying that when finally accessed, the state would genuinely benefit from it.

Making the clarification to newsmen in Yola, the chairman house standing committee on information, Hon Japhet Kefas, (Gombi PDP) noted that part of the agric bond would be utilised to upgrade the cattle markets across the state so as to boost socioeconomic activities and improve internally generated revenue.

According to the lawmaker, part of the first tranche of N25 billion from the bond would be used in upgrading all cattle and produce markets to a world class standard with a view to boosting the economic activities would generate N100 billion IGR.

Hon. Kefas said the assembly members gave the approval because there was a constructive, convincing explanation as to how the N100 billion would be used in developing the state and creating job opportunities for the teeming youth.

The lawmaker explained that the state government has informed them that the bond would be for the period of 4 years and that every year, the state would access N25 billion to carry out its developmental activities, saying that unlike a loan, the interest rate on the bond is fixed, with no ubdue increase.

According to the lawmaker, N15 billion out of the first N25 billion would be used in liquidating the loan collected from a commercial bank because according to him, the interest rate is increasing at an alarming rate; hence the need to off-set the facility immediately.

The lawmaker said that the remaining N10 billion would be used in upgrading Mubi, Ganye, Maiha, Ngurore, Song and other cattle and produce markets across the state, adding that part of the money would be used in constructing rural roads and health centres among others.

The legislator stated that the state government targeted N100 billion IGR annually from the upgraded markets, insisting that the facilities would be upgraded to international standards and would generate huge IGR for the state.

He disclosed that Adamawa state collects the sum of N100 tax only on a cattle and it does not generate up to N1 billion annually, despite thousands of cattle that are being transported out of the state, saying that Taraba state collects N1000 on every cattle including those that are being transported from Adamawa through Jalingo.

Japhet said Lagos state collects N10, 000 on every cattle, noting that it generates about N40 billion tax proceeds in a annually, pointing out that Mubi market alone is enough to generate substantial revenue for the state, not to talk of other markets, saying that over 100 trucks transport cattle from Mubi market to Lagos, Aba and other states on weekly basis.

The legislature disclosed that part of the approved N100 billion bond would be used to defray a loan of N4 billion obtained in 2006 by the local governments.

“The loan was obtained in 2006 by the local governments and could not be paid. Because of his concerns, the governor approached the Asset Management Corporation of Nigeria (AMCON) and demanded some reprieve. The management of AMCON agreed to waive off N3 billion for him, which means the state would only pay N1 billion, and that house found it to be in the interest of the state and approved same,” he said.

While shedding light on the approval granted on virement, the lawmaker pointed out that a dual carriage way has been extended on welcome to Yola road to double dual carriage which was not captured in the budget and that the governor wanted to mop up some heads and sub heads; hence the approval

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