Rivers N250bn Bond Goes Public, Oct

The N250 billion bond sought by the Rivers State Government from the Capital market will finally go public by October this year, according to the State Commissioner for Finance, Dr. Chamberlain Peterside.

Dr Peterside made the disclosure while speaking at a business dinner organized by the Port Harcourt Chamber of Commerce Industry, Mines and Agriculture (PHCCIMA) in collaboration with African and Caribbean Chamber of Commerce and Enterprise (ACCCE), United Kingdom in Port Harcourt, last Sunday.

He said the listing of the bond in the stock market will open a  new chapter in the state’s economic policy since government has adopted a new approach of funding its capital projects though long-term financing, which is safer and more prudent.

He said the state internal revenue profile has improved to about 25 per cent maintaining that the target is to raise it to about 50 percent before the end of this administration.

Peterside explained that one of the gains of seeking offshore funding is to inject accountability and transparency in the management of government fund.

According to him, the bonds are already oversubscribed saying among all the states seeking Capital market funding, Rivers State is the second most viable aside Lagos.

The Rivers State Commissioner for Finance who expressed worry over the population explosion in the state noted that the state is the second largest economy which is why the Amaechi-led administration has embarked on massive infrastructure to meet current realities”.

Dr. Peterside argued that over-reliance on federal allocation has stifled the economy in the past, disclosing that the state purse accrues from 80 per cent of the monthly allocation but said efforts are being made by the present administration to reverse the trend.

Earlier, President of PHCCIMA, Engr. Vincent Furo called on the state government to forge serious relationship with the chamber of commerce to revive the state economy.

He described chamber of commerce as an engine room of all commercial activities in any economy assuring that they are ready to make meaningful contribution to fast-track the economy.

Engr Furo expressed the hope that the forum will cement relationships between the organized private sector and government.

The same view was held by executive chairman of ACCCE UK, Mr Fola Kudehinbu who pledged the support of the body in providing an international platform to sell the business potentials in the state.

Kudehinbu observed that the world was experiencing an investment shift, as Africa has become the magnet of most advanced countries due to its huge untapped resources.

Meanwhile, the Rivers State Government has commenced plans to revive some of its ailing industries following the setting up of a committee by the Ministry of Finance to carry out a viability assessment of the firms.

Commissioner for Finance, Dr. Chamberlain Peterside dropped the hint while speaking at a business dinner organized by the Port Harcourt Chamber of Commerce Industry, Mines and Agriculture (PHACCIMA) in collaboration with the African and Caribbean Chamber of Commerce and Enterprise (ACCCE), United Kingdom last Sunday in Port Harcourt.

Peterside noted that though government is not interested in running the companies, it is poised to carry out what he described as “diagnostic assessment” to ascertain their viability with a view to turning them around to provide employment and boost its revenue profile through taxation.

“Once that is concluded, the state would seek investors for such firms and allow them to run independently,” he said.

Some of the companies include Risonpalm, Delta Rubber Company, Rivers Marine Company and West African Glass Company, among others. He cited the case of PABOD Breweries as “a classic case of turnaround partnership.”

In the words of the commissioner, “what we are looking for is technical expertise to diagnose their problems. Government is not interested in owning them but we will use them to drive investment portfolio in the state.”

Rivers State Governor, Rt. Hon. Chibibuike Rotimi Amaechi (left) and his wife, Judith conferring with Bishop of Ogoni Anglican Diocese, Rt. Rev. Solomon Gberegbara, during the burial of the mother of Senator Magnus Abe, Late Mrs Margaret Abe, at Bera in Gokana LGA, last Saturday.