Government of the State of Osun today completed processes of accessing a N11.4 billion SUKUK bond, thereby becoming the first state to benefit from the non-interest bond in the entire sub-Saharan Africa.
The processes were completed with the handing over of statutory documents to directors of Osun Sukuk Company, after which the Board Meeting of the company was held.
Speaking at the epoch making event the state governor, Rauf Aregbesola disclosed that, rather than being a ploy to Islamise the state as being alleged in some quarters, SUKUK, according to him, provided other avenues of raising funds with favourable repayment terms, to finance government’s projects.
He added that SUKUK remains an instrument of development, adding that majority of investors in the bond are non-Muslims.
The  state Commissioner for Finance, Budget and Economic Planning, Dr. Wale Bolorunduro also explained that the processes of accessing the bond was open and transparent, making the state  to get over subscription of the bond from the expected N10 billion to N11.4 billion.
Bolorunduro further stressed that, the bond is presenting to the state the opportunity to attract foreign investment adding that the way the transaction was structured made it a success, despite the changes that took place in the money market and interbank exchange before the SUKUK.
CHANNELS NEWS

RESIDENTS and indigenes of Osun have commended Omoluabi Support Group (OSG), organisers of the just-concluded maiden edition of Governor’s Golden Cup tournament held in  Osogbo, the state capital.
Majority of soccer fans who watched the event lauded the organisers for the smooth organisation, saying that such a tournament would help raise the standard of football in the state.
Also speaking with Tribunesport, chairman of OSG, Pastor Israel Alagbe described the tournament as an enviable one just as he commended Governor Rauf Aregbesola for his efforts at promoting sport in the state.
Alagbe pointed out that an initiative of the OSG, in collaboration with the Oranmiyan Campaign Group (OCG), arranged for the 32 football teams competition across the local council areas in the state, adding that it also attracted financial rewards for the participants.
On the motive behind the competition, Alagbe said the group believes in keeping youths off the streets through positive engagement in sport, adding that “the competition, apart from serving the means of youth empowerment, was also conceived to garner support of the vast youthful populace in the state for the re-election bid of Mr Aregbesola in 2014.”
Also speaking on the tourney, vice-chairman of OSG, Honourable Bisi Yusuf, organisers said the competition provided the budding players the opportunity to pursue their dreams of becoming professional footballers in the near future.
Yusuf who is also a member of the Lagos State House of Assembly stated that a lot of talents could be discovered and groomed to become established players in future especially in a tournament witnessed by football scouts who have links with top African and European clubs.
NIGERIAN TRIBUNE

Photos of Indigenes of the State of Osun traveling for the celebration of Ileya Festival through the free Train Transportation provided by the Government of Ogbeni Rauf Aregbesola at the Railway Terminus in Iddo, Lagos State on Saturday 12 – 10-2013

Workers in the State of Osun have once again restated their endorsement of Governor Rauf Aregbesola for a second term bid to occupy the Bola Ige House, sit of government in the state.
The second term backing was reaffirmed by the Chairman of Trade Union Congress (TUC), Comrade Francis Adetunji at the third edition of the public forum tagged Gbangba Deku, at Ile-Ife, Osun East senatorial district of the state.
Adetunji, who spoke on behalf of the workers, said all labour unions in the state have formed a united front to actualise the ‘come back’ dream of Aregbesola because workers have never had it so rosy under any government as they are having it with the current regime.
Adetunji said in the history of the state’s government-labour relationship, Aregbesola’s administration is the first that perfectly understood workers’ needs and cater to them as and when due.
“For the first time in this state, workers are happy and feel safe that their welfare would not be neglected or jeopardised by a government. Aregbesola’s government understands workers’ needs and takes care of their welfare.
“He quickly responded to our requests and wishes when workers in other states still had problems with their state governments across the country,” Adetunji said.
The labour leader stated that it was the Trade Union Congress that first endorsed the second term ambition of Aregbesola on May 1st 2013 before other associations, interest groups and other associations followed and are till following labour unions’ footsteps.
He said that the public forum is the first function workers would follow government to its programme, saying this solidarity is a testimony of the love, trust and support workers have for the government.
Aregbesola, according to Adetunji, runs a transparent, responsible and responsive government, saying whatever his (Aregbesola’s) administration promises he go to any length to make sure such promise is fulfilled.
He continued: “Workers’ unions are now one united front and we are behind the government of Ogbeni Rauf Aregbesola.
We will not waver until the second term is achieved. Our watchword is: ‘Second term; No shaking,’” Adetunji said.
He promised on behalf of the workers that wherever government is going from now on, labour is ready to follow.

 
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