The approval recently granted by the Nigerian Security and Exchange Commission (NSEC) to Osun State Government to access N10billion Islamic Investment Bond called “Sukuk” has generated another heated controversy, especially among the Christian Organisations and opposition political party in the state. This bond is the first of its kind to be granted to any individual or organization and government in the entire West Africa region. Osun State Commissioner for Finance, Budget and Economic Planning, Dr. Wale Bolorunduro, in this Interview he cleared the air on status of the loan, the state debt profile and other issues. Excerpts:   
Why has the state continued on a policy of uncontrolled borrowing to finance developmental projects?
All governments borrow, and they must. This is because the type of responsibilities a government shoulders are things that cannot wait and things which need far more money than the government realizes within the given space of time. Borrowing however must be controlled, for anything without control is a means of mindless destruction. But as far as a state within Nigeria is concerned, borrowing is strictly regulated by the Central Bank of Nigeria (CBN) as well as the Federal Ministry of Finance.The level of borrowing permitted to a state is relative to its monthly federal allocation, its Internally Generated Revenue (IGR), the size of its existing debt portfolio among other indicators of financial health.
Government borrowing is premised on the time-tested model that if credit is sourced to finance the right things like infrastructures and development of human capital, the environment is being fertilized for productivity. Once such productivity is well nurtured, it matures into a stable economy with negligible unemployment and a robust base for revenue generation through taxes. This will in turn lead to a painless liquidation of existing indebtedness. Borrowing therefore is not the problem but the purposes of the loan. There are other details of the structure of the loan, its rate, term and moratorium etc.
What is the guarantee that the borrowing will not serve as unending burden to the generation unborn?
I can assure you that the approach of the state government of Osun under Governor Rauf Aregbesola to borrowing has followed a very carefully calibrated professional order. We have remained mindful of all of our moral obligations to society as well as the public perception of our actions. We have taken the pains not to borrow on conditions that will hurt the state both now and in the future. In fact, all our borrowings are framed to make things easier for the future generations as I will shortly demonstrate. You will recall that at the inception of this administration it met an N18billion term loan that threatened to asphyxiate the state. The structure of the loan meant an across-the-counter interest rate in the range of N650million a month. At that time, the state’s IGR was about N300million and monthly allocation from the Centre stood at about N2.5billion: all this for a state with a salary bill of N2billion.
When you do the arithmetic, it becomes clear that a loan of this nature will kill the state slowly. To add, the loan was to develop six stadiums across the state. Stadiums will not add economic value except you are hosting the Olympics and the like. This was a strong and enough trouble for us that we had to source a fresh credit line with favorable terms to liquidate that N18billion debt as quickly as we can. The difference in the interest rates and other terms of the credit line meant a lot of savings for the state. The N30billion we raised from the capital market with terms far more public-friendly than the commercial bank short-term loan that was originally taken by the previous administration. All details of the bond are transparent information in public domain as records kept by the Securities and Exchange Commission, SEC.
Another reason why government borrows is to hedge against inflation. A road project costing N15 billion today will cost N20 in the next two years. It only makes sense to hedge against such trends so long as the interest rate on the loan is below the calculated inflation rate.
Why must Osun be the first state in Nigeria to draw an Islamic bond which will only enslave us to some Islamic investors, whether individuals or corporate?
We are not signing any agreement with any Islamic personality or Islamic organization, be it local or foreign. We are not enslaving the state in any way through the issuance of this bond. Sukuk is like any other conventional bond with the only difference being its attraction of additional investors who will not support interest borrowing and vanity projects. Investors are welcome as a matter of open business without reference to their religious background. The Sukuk is a fund not supervised or administered with Islamic system of laws or liturgy. Moreover, it is regulated in the strictest terms by the Nigerian Security and Exchange Commission, SEC, on the same general principles by which other regular bonds are administered. Let us note that the Security and Exchange Commission is at present being headed by Arumeh Otteh, a known Christian woman.
It is very important to point out that by the nature of the regulations establishing the Sukuk under the laws of Nigeria as a secular state, when a person invests in the Sukuk, he becomes a bondholder, not a lender of cash. What he has in the fund is not cash but investment. The Security and Exchange Commission, SEC is directly responsible for managing the relationship between the bondholders and the state government. In other words, investors have no means of relating directly with the state government to initiate a conventional lender-borrower relationship. They must go through the SEC, following established guidelines that have weeded off sentiments that could in any form coerce or put pressures on the borrower or impose obligations that can upset the social order.
All these measures have been taken by the SEC in formulating the guiding laws issuance of bonds so that the danger of a sour and oppressive borrower-lender relationship developing is not given a chance, to begin with. As for our being the first state, I think it is simply that someone has to be the first. It has its downside being the first in some instances, but perhaps, it is the reluctance to have to face the fire of this type of scrutiny that have made other states draw back hitherto. Professionally speaking, however, obtaining clearance from Nigerian regulatory authorities to raise a bond is not a walk in the park. It is an undertaking that passes the camel through the eye of the needle. The balance sheet of the applicant state is carefully combed in a process that takes about a year. Not many states can pass that stringent test of transparency and proven financial health.
Why haven’t states like Zamfara and others in Northern Nigeria taken this step of Islamic financing options?
For reasons stated above, perhaps, and it will also apply to any other state in any region of the country.
Is this not a step toward the establishment of Sharia system of jurisprudence in Osun State?
From your perspective I can understand this concern. Any Christian who is aware on the professional character of this funding system is bound to have justifiable fears and we recognized this all along as a government. We recognize the other side of the coin furthermore, namely, the inordinate triumphalist feelings that some Muslims may harbor that the Islamic religion is being institutionalized or enhanced by actions of government. I wish to restate that the only way the sukuk has to do with the Islamic religion – the only way it partakes from faith – is its non-interest nature and the fact that it cannot be used to fund enterprises that are related to prostitution and alcohol, marijuana or other vanities. Personally I appreciate the fact that non-interest lending actually started with the Israelites of the Biblical times who were divinely instructed not to give loans to their countrymen on interest. This was categorically declared an unfair practice. With this in mind, non-interest banking really has not affronted the conscience of a Christian. It has not imposed a value on him that is contrary to his faith.
NEWS HERALD

Osun State police command has assured the residents of the state of adequate security during the forthcoming Eid-El-Kabir celebration.
The State Commissioner of Police, Mrs. Dorothy Gimba gave the assurance on Friday in a statement issued and signed by the State Police Public Relations Officer (PPRO) Mrs. Folasade Odoro, copy of which  was made available to newsmen in Osogbo.
Mrs. Gimba while congratulating the Muslims on the festival appealed to them to celebrate the festival peacefully.
She assured that adequate arrangements have been put in place by the command to ensure Eid-El-Kabir is hitch free adding that the command has put in place water tight security during this period and beyond.
The Commissioner who appealed to the residents to volunteer prompt and useful information in case of any infraction of the law, said that security operatives have been put in strategic locations to ensure maintenance of law and order.
 DAILY INDEPENDENT

The new educational system in the state of Osun is aimed at producing the total man who will not just be literate, but be educated enough to effect a positive impact in the state and the nation as a whole. The total man, in the words of the great avatar, Chief Obafemi Awolowo, “ … is what he is because the three main constituents of his entity-his body, brain and mind are fully developed.” The governor of the state of Osun, Ogbeni Rauf Adesoji Aregbesola declared to the pupils of Salvation Army school Alekuwodo, Osogbo while inaugurating the new school system that “our dream is to make you all renowned scholars in the future so that you can be a pride to the state of Osun and the entire country”.
The reclassification of primary and secondary schools sectors into Elementary schools, Middle schools and High school is in line with global best practices and trends. It is worthy of note, that the new educational system in the state has not in any way deviated from the 6-3-3-4 National policy on education or effected changes in the school curriculum.
The colonial-education handed over to us was not aimed at producing an all- round scholar but to train clerical clerks, interpreters and messengers. Thanks to the likes of Chief Awolowo who gave the then Western region free but qualitative education that produced the present leaders. That investment in men by Chief Awolowo made the South West to remain the pacesetter in social and economic development till date, even though, unfortunately, the military intervention later ruined our educational sector. The civilian regime failed to revive the dying or dead educational institutions, while others merely paid lips-service to it.
The government of Ogbeni Rauf Adesoji Aregbesola inherited a poor educational sector just as what the former President of America Bill Clinton met at Arkansas when he became the governor in 1983. The standard of public education in Arkansas then was a disgrace. This prompted Clinton to make that sector a priority; and at the end of his first term his achievement in that sector was phenomenal. The same can be said of Aregbesola today, as the Osun people home and abroad, acknowledged the governor’s impact on the educational revolution, which has successfully placed the state on the global scale with the introduction of Opon Imo-tablet of knowledge that earned the state commendation internationally.
The educational reforms in the state involved the categorization of schools.
The elementary school, which is made up of Grades 1-4, admits pupils of age range of 6-9 years. The advantage that parents and pupils derive from this class of school is the proximity to the residence, trade and work place of parents. And that will not only save both parents and pupils the cost of transportation, but will also save them the trouble of early morning rush and closing time struggles to and from school. Enrolment in the elementary schools has been so arranged in cities to be 900 pupils per school while that of schools in rural communities may have less population, and the pupils need not walk long distances  in order to attend schools.
The Aregbesola’s administration has embarked on the construction of 13 elementary school buildings across the state at the cost of N14.76 billion.
The pupils in the elementary schools are already enjoying free meals in each school day. The availability of these free meals have tripled the school enrolment in the state,  making it the state with the    highest numbers of pupils’ enrolment in Nigeria. This idea of providing free meals to pupils was adopted in Britain in September 2013; the British government hopes this will save parents the sum of £50, 000 annually. It is worthy of note to mention also the state government’s the provision of unified school uniform free of charge, increase in school and examination grants, supply of instructional materials and customized exercise books.
The Middle school is made up of Grade 5-9 with Pupils of age range of 10-14 years. The schools are located within  2-3 kilometers radius of the pupils’ residents. The enrolment will be between 900 to 1000 pupils. The schools, when completed, will be state- of- the- art, with modern facilities. The High School is made up of Grades 10-12 with students of Age range of 15-17 years. These schools are located in old school compounds with a very large space.
The enrolment will be 3000 students per school The buildings, three schools- in- one complex, are state of  the art with modern facilities, staff quarters, standard laboratories, food courts, standard sporting facilities, a school hall of 1000 minimum sitting capacity and School Mangers for the proper facility management. The students in the High School are also beneficiaries of the unified school uniform and free Opon Imo-tablet of knowledge. The government has also increased school and examination grant as well as payment of WASCE fees. 20  High Schools are being built across the state, while some have already been completed.
Why is the Osun state Government investing this much in Education? In Aregbesola’s own words: “Education is the key to our economic revival and our perennial quest for prosperity. We must dedicate more of our limited resources to paying teachers better; expanding educational opportunities in poor and small districts.” This, indeed, is the philosophy behind the governor’s huge investment in education.
The Aregbesola educational revolution has received the popular support of a high percentage of the people in the state. This is evident in the high increase in the number of enrolment in the public schools across the state. The initial fear of government changing the names of the old schools has been put to rest with the commissioning of Salvation Army schools at Alekuwodo that retained its name. The rumour about government intention to Islamise the state via school classification has since been debunked. The intention of the government is to rejuvenate education in the state in accordance with Chief Awolowo’s philosophy of the total man.
What the governor needs now is the people’s maximum support  in form of regular payment of our taxes. The former names of school and locations are not as important as the provision of modern facilities in today’s world. Several institutions in Nigeria have either been relocated or have their names changed.  A good example is the relocation of a group of people from where they used to live at  the National Stadium area in Surulere, to Shitta Bey area of Lagos; the Kala- kuta Republic owned by afro-beat musician, Fela Anikulapo Ransom Kuti which was  razed down by unknown soldiers in the 1970s, was converted to Ransom Kuti Grammar School; CMS Grammar School was relocated from Broad street to Mushin area in Lagos; the Ibadan airport, which was formerly located at Sango area was later moved to Alakia area in Ibadan. The investments in education today will certainly produce a better generation of leaders that shall take our nation to its zenith tomorrow.
DAILY INDEPENDENT

In what analysts described as a parade of the most celebrated in the Nigeria’s ICT industry, organizers of the Africa Digital Forum and Awards [ADA] has instituted ADA Hall of Fame, which would induct Governor Rauf Aregbesola of the State of Osun and Technology Minister among others. Several industry bigwigs including the Governor Aregbesola have also announced that they would attend this year’s event on December 8, 2013 at the Sheraton Hotels and Towers, Ikeja, Lagos.
In addition, the guest speaker for the day has been confirmed while other leading speakers such as Executive Governor of the State of Osun, Ogbeni Rauf Aregbesola, who will be speaking on the theme ‘’Deepening e-governance, Transparency with Broadband Access’’, Ernest Ndukwe, who is the chief host, would support him and host, Babatunde Raji Fashola (SAN), Executive Governor of Lagos State.
Special guest of honour is Omobola Johnson, Hon. Minister of Communication Technology. While the Keynote Speakers include the Executive Vice Chairman/CEO of NCC, Dr. Eugene Juwah, Prince Emeka Mba DG, National Broadcasting Commission (NBC), Gerald Ilukwe MD / CE, Galaxy Backbone PLC.
The event consists of the Africa Digital Forum (ADF 2013) where issues in the industry will be critically examined, solutions will be proffered, and the Africa Digital Awards Hall of Fame 2013 would celebrate outstanding individuals that have contributed immensely to the growth and leveraged on the potent power of ICT to innovate and execute different ideas.
The panelists are Austin Okere, Group MD of CWG, Chief Leo Stan Ekeh, Chairman Zinox Computers, Engr Emma Ekuwem, EVC Teledom Group, Engr. Florence Seriki Group MD Omatek Ventures, Ms Funke Opeke, MD Main One Cable, Engr. Lanre Ajayi, President ATCON, Engr. Gbenga Adebayo Chairman ALTON, Engr. Bayo Banjo, President NIG, Akinwale Goodluck, Corporate Services Executive of MTN among others.
ADA is the brainchild of Tayo Adewusi. His TV Network is watched on MITV, TVC, NTA, Focus Television on Cable and YouTube Channel. In addition, for effective coverage of this unique and futuristic programme the event is expected to be transmitted live on NTA, Streaming on the internet, Focus Television on Cable and the programme’s YouTube Channel, respectively.
According to Adewusi while responding to media questions on the extent of the planning for the programme, he confirmed that several industry leaders have confirmed their coming while some state executives have also confirmed their participation.
Among those to be honoured posthumously will be Engr. Alaba Joseph, former President of ATCON, Prof. Gabriel Ajayi, Pioneering DG of NITDA, Ndukwe Kalu, former President of NIRA. The history of Information and Communications Technology industry cannot be complete without the mention of these individuals, we will honour them though post humously, and we will make sure that we also celebrate the legends that are still leaving.
“There is no doubt that this inaugural edition of Africa Digital Awards Hall of Fame 2013 would celebrate exceptional individuals and corporate entities that have leveraged on the potent power of ICT to innovate and execute different ideas. And in line with the original concept of this programme, there will also be the Africa Digital Forum (ADF 2013) which will critically examine issues affecting the industry and uppermost in this time that we live in is the Broadband and how this can help transparency in government and e- governance among others’’.
Other sub-themes to be discussed at the Forum include: Using Broadband to drive Economic Development and Create jobs, Helping SME’S grow and prosper with Optic Fiber, Penetration, Quality of Service, Affordability, Tool for Cashless Society, Infrastructure as a critical resource among others.
NIGERIAN BULLETIN

In recognition of his quest to enhance wealth through massive increase in food production and agriculture, the governor of the State of Osun, Ogbeni Rauf Aregbesola on Wednesday bagged an Award in Rwanda for his sterling performance in Agriculture.
The governor was presented with an award for “Innovative Agricultural Policy and Practice for Inclusive AgriBusiness Development in Africa” at the EMRC AgriBusiness Forum 2013 held at the Serena Hotel, Kigali Rwanda.
The AgriBusiness Forum 2013 with the theme “The Agri-Food sector: A catalyst for sustainable and Inclusive Growth in Africa was co-organised by EMRC and Rwanda Ministry for Agriculture and Animal Resources. The Rwandan Prime Minister, Mr. Pierre Damien Habumuremyi who was the Guest of Honour in his keynote address stressed that no nation can be said to be developed without it developing its Agriculture.
He urged participants at the forum not to treat with kids glove the deliberation on the importance of Agriculture and Agric Business for development of Africa.
“This forum must be at his best to spotlights the important business opportunities agriculture and agribusiness can provide Sub-Saharan Africa. The Agri-Food sector must be a catalyst for sustainable and inclusive growth in Africa, therefore all hands must be on deck to ensure that investors come to Sub-Sahara of Africa.” Habumuremyi pointed out.
EMRC presenting the Project Incubator Award  to Aregbesola who is one of the recipients for his effort at developing Agriculture in the state of Osun held that after carefully studying the state’s exploit in Agriculture, it decided to honour the governor.
The governor in his determination to frontally engage the social cankers of poverty, hunger, and unemployment started the Osun Rural Enterprise and Agriculture Programme(O’REAP) to train youth in farming.
A total of 610 O’YES Cadets were trained last year at the O’REAP Youth Academy Farm Centres located across the nine Federal Constituencies in the state, with selected participants at 20 per Local Government and 10 from Ife East Area Office.
This year’s edition of the O’REAP Youth Academy, witnessed a significant rise in the number of youth participants, each of the 332 wards in the state is fairly represented with three O’YES Cadets per ward, accounting for 996 Cadets to be trained in modern agriculture at the nine training centres of the O’REAP Youth Academy.
The commitment of the governor to raise agriculture from subsistence to mechanised farming is one of the major reasons for sending 40 youths to Saxony-Anhalt, Germany.
According to the governor, this training is in continuation of government’s drive to revolutionise agriculture in the state under the O’REAP and boost food productions for local consumption as well as export.
The administration is providing the necessary infrastructure and support for farmers with inputs, which requires supplying them with inputs such as improved seedlings, fertiliser and fumigants among others; giving them hundreds of thousand of already prepared hectares of land.

This landmark achievement was wrapped up in Osogbo, the state capital yesterday. According to the issuing houses, the sukuk was said to by the first Islamic bond in sub-Saharan African.
In attendance during the document signing ceremony was the Governor of the state, Ogbeni Rauf Aregbesola; the Deputy Governor of Ogun State, Mr. Segun Adesegun and the entire state cabinet.
The sukuk bond was issued in accordance with enactment of the Osun State Bonds, Notes and Other Securities Law 2012 and setting up the Osun Sukuk Company Plc. Though Islamic in nomenclature, the sukuk bond was a conventional bond and coordinated by the regular investors in the nation’s capital and money market
The bond was issued in accordance with the Security and Exchange Commission’s rules and regulations. The N14. 4 billion sukuk (14. 75 percent) fixed return tranche 2 has 42 investors with Lotus Capital Limited as the leading issuing house and Augusto and co, one of Nigeria’s leading rating agencies, as the rating agent.
The bond, which would be used to finance roads and school constructions across the state, is due in 2020. While authorising and approving the offer at the board meeting for the Sukuk Company, Aregbesola said his government took the sukuk bond as an opportunity for the development of the state.
Aregbesola appealed to the people to see the bond as an avenue to attract development to the state for the benefit of all and sundry.
“The Sukuk bond is a veritable avenue for us to access capital to develop our state.
We want our people to also see this opportunity that opens to us as such.
“In name the bond is Islamic but it has the conventional bonds’ characteristics and is coordinated by the regular capital and money market investors.
“Out of the 42 investors, only one of them (Jaiz Bank) is Islamic and the name sukuk is just a nomenclature. The investors are regular Nigerians,” the governor said.
The Commissioner for Finance, Budget and Economic Planning, Dr. Wale Bolounduro, described the sukuk as a unique product.
Bolounduro said this bond makes it possible for the first time in Nigeria for a government to open itself up to the capital market in transparent manner.
He said the landmark achievement has offered government of the state opportunity to optimise capital for business purposes.
The chairperson of Lotus Capital, Hajara Adeola said the bond was successful and over-subscribed.
She said the sukuk’s success represents a clear vote of confidence in Governor Aregbesola’s administration, the State of Osun and its people.
Adeola said the governor had become unique for his penchant for exploring novel ways of doing things adding that the sukuk represented  another instance of Aregbesola exploring new ways of seeking for the development of the state.
 

Two months after assumption of office, Aregbesola organized a world-class education summit to chart a new way forward in the educational sector of the State of Osun in conformity with the evolving global trends in the field. The summit, which was chaired by Nobel Laureate, Prof Wole Soyinka, had in attendance other veteran stakeholders who proffered solutions to the perennial problems being experienced in the country and Osun in particular.

Stakeholders agreed on having three structures of basic education that is elementary, middle and high rather than the existing primary, junior and secondary levels.  A comprehensive overhaul of physical and human component of the education system was also recommended.
Notable members of the Summit Includes: Prof Wole Soyinka, the Chairman of the Education Summit, Prof Peter Okebukola, Dr Akin Fapohunda, Dr Isaac Agboola, Prof Sola Adeyeye, Me Lere Osundina and State Government Functionaries of the State of Osun
See more at:http://www.nigerianbestforum.com/generaltopics/stakeholders-move-to-resolve-educational-crises-in-osun/

It is regrettable that a respected body like CAN can display so much ignorance in respect of education in Nigeria. To start with, the State of Osun like the rest of Nigeria cannot discriminate in the provision of educational facilities on the basis of gender or religion. Secondly CAN is operating from a false premise that some schools are Christian schools.
All public schools belong to all the people irrespective of their religious beliefs. If we Christians want to have schools over which we will have full control, the constitution provides for that.
Finally the history of the take-over of schools credited to Gowon is also false. The take-over of schools was a direct consequence of the Asabia Commission and I was the originator of the idea with my colleagues who served after me as advisers to that body. A main reason for that action was that the proprietors who received grants from government and fleeced parents through high fees made education very expensive. In spite of not investing their own money in education they failed to pay teachers on time if at all; they tyrannized teachers; they even went as far as not promoting teachers on merit especially if those teachers belonged to other denominations.
CAN should please do its research and acknowledge that Adefarasin emancipated teachers and Asabia, its sub-committee recommended the procedures for achieving that end, If CAN needs being educated on this issue, I will oblige. In the meantime it should stop spreading falsehood.
Aregbesola may or may not be guilty of wanting to Islamize Osun; that is not my concern here. Accusing him of using education is however not true.
Comments by Dr Amiel Fagbulu who retired as head of EMIS (Education Management Systems) from the Federal Ministry of Education and was retained as Consultant both by Federal Government & the UNESCO on Education Management Systems