“When you look at our Consolidation Debt Service Account we have about N22 billion and we are talking N101.2billion in the next 2 or 3years. It will amount to a lot of pressure on our debt obligation, so what we thought that is necessary is that we should quickly access the bond market with the approval of the House so that we can get it at cheaper rate and it will be for 10years with 2 years moratorium.
“What it means is that, in the next two years after securing the bond we will not pay any money. We will not pay the interest and the capital, it will be like a tax holiday. It will relieve the state of the burden of sourcing for money to pay the creditors. “On the second aspect, if today we don’t access the commercial loan from one of the banks at a single digit of 9.25%, we will still be losing because what we will still access, we will pay the holders of the bond between now and the next one month. That means we have been able to save money worth an average of N1.5billion in the form of a seeking fund to be able to make up by 2023.
“So, if we don’t pay that in the next three years, what it means is that we have gotten a saving of about N75 billion. It is obvious that there cannot be a better time for the state to go for the bond market which we call ‘ Special Dispensation Bond’ and the second is a loan from a commercial bank at the interest rate of 9.25 which is very cheap. That is the reason why the Assembly speedily supports the executive.
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