The Guardian : ‘Why states must be funded by capital market’
If government must build roads, schools, hospitals that impact the lives of people, there is the need for a reliable source of long-term funding structure that is appropriate for the major investment.
Hence, the need for states governments to be funded by the capital market.
Group Chief Executive Officer, United Capital Plc, Oluwatoyin Sanni, said state governments should be funded from capital market, as opposed to dole outs and handouts by the federal government.
Sanni said the reality as at today with the states;, bailout funds they have had, but are still calling for more, is that everybody has maxed up the limit, stating that Lagos is raising debt capital from the market.
She disclosed this at the launch of the National and Sub National Competitiveness Report, released by National Competitiveness Council of Nigeria (NCCN) in Lagos.
In the report, NCCN ranked Lagos State top among the 36 states and the Federal Capital Territory, in its first ever Sub-National Index.
Lagos was closely followed by Delta, Rivers, Niger, Enugu, Edo, Jigawa and Abia states, respectively.
The index covered four key areas, which included human capital, infrastructure, economy and institutions.
She argued that state governments should be funded by capital market, because by borrowing from the capital market, there are structures around that borrowing, which allow for accountability and transparency.