Plans are underway to use part of the #100 billion Agric Bond approved by the Adamawa state House of Assembly to upgrade all cattle markets so as to boost socio economic activities as well as internally generated revenue for the state.
According to the government, part of the #25billion that will first be collected out of the #100 billion bond will be utilised in upgrading all cattle markets and produce markets to a world class standard as a deliberate plan to boost economic activities and in return generate #100 billion IGR.
This was made known by the Chairman House Standing Committee on Information of the Adamawa state House of Assembly, Hon. Japhet Kefas, while making clarification on the whooping #100billion agric bond approved for Governor Ahmadu Umaru Fintiri.
Hon. Kefas who represents Gombi constituency at the hallowed chamber told newsmen in Yola that the Honourable Members gave the approval because there was a clear cut explanation as to how the #100 billion would be used in not only developing the state but creating job opportunities for the teeming youth.
He said that Fintiri had informed them that the bond is for the period of 4 years, and that every year, the state will access #25billion only to carry out its developmental activities, saying that unlike loan, the interest rate on the bond is fixed and does not increase.
He further explained that #15 billion out of the first #25billion, will be used in liquidating the loan collected from a commercial bank because according to him, the interest rate is increasing at an alarming rate; hence the need to off-set the facility immediately.
According to him, the remaining #10billion will be used in upgrading Mubi, Ganye, Maiha, Ngurore, Song and other cattle and produce markets across the state, adding that part of the money will be used in constructing rural roads and health centers among others.
The legislator stated that the state government is targetting #100 billion IGR yearly from the affected markets if finally upgraded, insisting that the markets will be upgraded to the best standard that will generate IGR for the state.
He disclosed that Adamawa state collects the sum of #100 tax only on a cattle, and it does not generate up #1billion in a year despite thousands of cattle that are being transported out of the state, saying that Taraba state collects #1000 on every cattle including those are being transported from Adamawa through Jalingo.
He said that Lagos state collects #10, 000 on every cattle, and that it generates about #40 billion in a year, pointing out that Mubi market alone is enough to generate revenue for state not to talk of other markets, saying that over 100 trucks transport cattle from Mubi market to Lagos, Aba and other states on weekly basis.
On another letter approved by the house, Hon. Kefas further said that the state LGCs obtained #4billion loan in 2006 which could not be settled, saying that the Governor approached the Assett Management Corporation of Nigeria (AMCON), and that the management agreed to wave #3billion for him which means the state will only pay #1billion, and that house found it to be in the interest of the state and approved same.
While on the approval granted on virement, he pointed out that a dual carriage has been extended on welcome to Yola road to double dual carriage which was not captured in the budget, and that the Governor wanted to mop up some heads and sub heads; hence the approval.
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