Business
Rivers Assembly Gives Legal Backing On N100bn Bond
Rivers State House of Assembly on Wednesday backed the approval of Rivers State N100 billion bond bu law.
The House stated that the state Government can now go ahead to borrow the N100 billion through the sale of bond from the capital market.
According to the proceedings on the floor of the Assembly, the passing into law of the approval gives the whole transaction authenticity as the former approval was done in error without the backing of a law.
The House however, cut down the proposal of the state government from N250 billion to N100 billion.
According to the leader of the House, Hon. Chidi Lloyd, the bond fund would be used to complete most of the infrastructural projects in the state.
It would be recalled that the state on June 2010 made public her intentions to raise N250 billion through the sale of bond from the capital market.
The state government also fulfilled the modalities of raising such fund, when she invited the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) June last year to educate the citizens on the importance of the fund, how it will be repaid and what it will be used for.
With the backing by law the citizens are expected to be prepared for the purchase of the bond, pending the date that will be fixed by the state government.
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