By Usman Ibn A. Lapai
Kaduna
Kaduna state government has said it was partnering with an experienced rating agency, Fitch Ratings, with intention to enhance the state’s performance in the rating exercise even as it implements its financial reforms.
The Commissioner for Finance, Suleiman Abdu Kwari, who stated this in a statement he personally signed in Kaduna yesterday, said the state would benefit from the outcome of the partnership as it would motivate workers and investors in the state.
The commissioner said his counterpart in budget and planning and the Accountant General of the state had recently interacted with the representatives of rating company and observed that the partnership would further promote state’s capital market outlook and enhance fiscal transparency.
He said: “Fitch rating is a key decision making criteria for offshore organisations seeking to invest in Nigeria, a positive rating for Kaduna will increase its Foreign Direct Investment (FDI) inflow opportunities.
“It will create a wider audience for investment by giving the state a more stable and global outlook to the international community.
It will lower the cost of borrowing for the State by quoting lesser interest on fixed deposits or debentures or bonds as investors with low risk preference would come forward to invest in safe securities.
“A high rating will reduce the cost of Issues and attract investors with minimum effort as well as facilitate best pricing and timing of issues. Rating will provide motivation to the state for growth as workers would feel confident in their own efforts and also encouraged to undertake expansion of their operations or new projects.”
He, however, added that the delegation was still engaging with Fitch towards concluding the rating process.
