We are prompted to ask to what use the whooping sums of money raised by the states from bonds issuance have been put, whereas the people on whose behalf government borrowed the funds continue to wallow in poverty and deprivation.

A growing trend whereby Nigerian state governments resort to the Nigerian Stock Exchange (NSE) to issue bonds running into billions of naira without a transparent blueprint on how such funds would be utilised nor substantial accomplishments to justify the debt is indeed worrisome. According to media report sixteen states of the federation have raised bonds totaling N520 billion in the last five years. The Nigerian Stock Exchange ( NSE), records indicate that Lagos has the highest debt totaling N187 billion while Kogi State has the lowest bond issue of N5 billion. Osun State has raised N30 billion, Edo N25 billion, Kwara 17 billion, Gombe N20 billion, Niger N15 billion, Kaduna 8.5 billion.

Others are Benue N13 billion, Ebonyi N16.5 billion, Ondo N27 billion, Ekiti N25 billion, Bayelsa N 50 billion, Delta N50 billion and Imo N18.5 billion. More states according to reliable reports are at various levels of arrangements to raise bonds from the stock market, including states that their governors have less than a year to complete their tenure. If a state that the tenure of office of its governor expires in a few months going into the election year raises money lately for the state from bonds issue, what is the guarantee that such funds may not be diverted for unintended ends?

With revenue accruing to states from the federation account declining in recent times due mainly to oil theft, and many states generating very little internally generated revenue, not a few states have resorted to raising capital from the stock market by issuing bonds. The usual excuse given by state governors for raising the bonds is that they plan to use the funds raised from the bonds issued by their states to finance infrastructural development. When questions are raised on lack of transparency and accountability utilization of the funds realized from the bonds by the states, the usual answer is that their state Houses of Assembly have given approval.

We are concerned because the evidence on ground in many of the states that have raised substantial sums of money from bonds issuance does not bear out the claims that the funds are used for infrastructural development. Most of the public infrastructure such as roads, hospitals, schools and potable water are grossly inadequate and decrepit in many of these states that have raised money from bonds. We are prompted to ask to what use the whooping sums of money raised by the states from bonds issuance have been put, whereas the people on whose behalf government borrowed the funds continue to wallow in poverty and deprivation.

We advise that money borrowed by the states on behalf of the people must not be diverted to personal use of governors or any public official. Indeed, there is urgent need to curb the rising tendency for state governments to abuse the opportunity of borrowing funds from the stock market. This newspaper wants state Governors, and Houses of Assembly as representatives of the people to adequately inform their people of government borrowing whether by issuance of bonds or from the capital market, and the usage and terms of payment of such facilities and only proceed if the people give their support.

The Houses of Assembly in those states that have already raised money through bonds must exercise their oversight functions by tracking the usage of borrowed funds to ensure that they are used appropriately for the good of the people. The state legislators must resist the temptation of compromising with any corrupt state governors who may wish to "settle" them and channel money from bonds to personal and political party use and leave the burden of repayment to the state after leaving office. After all, the loyalty of the state legislators must first be to their people and states rather than the state chief executive and their political parties.

A great disservice and injustice is done to the people if the state failed to put money raised from bonds to productive use whereas the state bears the burden of repaying the facilities with interest over a couple of years, usually deducted as a first line charge from the states statutory allocation. State governments must adopt a more prudent approach to borrowing by ensuring that if it becomes inevitable to borrow, such funds must be channeled to productive purposes such as necessary infrastructure and employment generation that could impact positively on the people.

We urge state governments to immediately begin to wean their states and people from addiction to cheap but unstable and unsustainable oil money from the Federation Account and initiate functional strategies to steadily increase Internally Generated Revenue (IGR) from taxes and other legitimate sources. This is a more dependable avenue to generate revenue to fund the programmes of the states rather than recourse to borrowing at the slightest financial pressure. Perhaps, States in the country would do well to heed the advice of the Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo -Iweala, that they should avoid debt accumulation which impacts negatively on the economy.