SHELF PROSPECTUS

DATED [**] 2011

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This document is important and should be read carefully. If you are in any doubt about its contents or the action to take, kindly

consult your Accountant, Banker, Solicitor, Stockbroker, or an Independent Investment Adviser for guidance immediately. For information concerning certain risk factors which should be considered by prospective investors see 'risk factors ‘on pages 40-42

investment in this bond is strictly for qualified investors.

EKITI STATE GOVERNMENT OF NIGERIA N25,000,000,000

[BOND ISSUANCE PROGRAMME]

SHELF PROSPECTUS

LEAD ISSUING HOUSE/BOOK RUNNER

GREENWICH TRUST LIMTED RC: 189502

JOINT ISSUING HOUSES/BOOK RUNNERS

UBA CAPITAL LIMITED RC: 444999

SKYE FINANCIAL

SERVICES LIMITED RC: 672560

FIDELITY BANK PLC RC: 103022

FBN CAPITAL

LIMITED RC: 446599

CAPITAL BANCORP

LIMITED RC: 114135

MORGANCAPITAL

SECURITIES LIMITED RC: 306609

CHAPEL HILL ADVISORY

PARTNERS LIMITED RC: 622258

BGL PLC RC: 223042

This Shelf Prospectus has been cleared and registered by the Securities & Exchange Commission (”the Commission”). It is a civil

wrong and a criminal offence under the Investments and Securities Act No. 29 of 2007 (“the Act") to issue a Prospectus which contains false or misleading information. Clearance and registration of this Shelf Prospectus and the Securities which it offers does not relieve the parties from any liability arising under the Act for false and misleading statements contained herein or for

any omission of a material fact.

This Shelf Prospectus has been issued in compliance with Part XV of the Act, the Rules and Regulations of the Commission and the listing requirements of The Nigerian Stock Exchange (“the Exchange”) and contains particulars which are compliant with the

requirements of the Commission for the purpose of giving information with regard to the N25,000,000,000.00 Ekiti State Bond Issuance Programme (“the Programme”)

This Shelf Prospectus contains information about the general characteristics of the Bonds offered under the Programme, their distribution terms as well as investor’s rights and duties relating to such Bonds in addition to information about the Issuer.

Details of the final terms applicable to each Tranche of Bonds such as the issue price, issue date, maturity date, principal amount, redemption amount, coupon rate (if any) applicable to any Bond and any other relevant provisions of such Bonds, will

be specified in a Pricing Supplement (the “Pricing Supplement”) set out in a supplement to this Shelf Prospectus.

The registration of this Shelf Prospectus and any Pricing Supplement shall not be taken to indicate that the Commission endorses or recommends the Bonds or assumes responsibility for the correctness of any statements made or opinions or reports

expressed in this Shelf Prospectus or any Pricing Supplement. No Bond will be allotted or issued on the basis of this Shelf Prospectus read together with a Pricing Supplement later than two years after the date of the issue of this Shelf Prospectus.

A DECISION TO INVEST IN THE SECURITIES OFFERED BY THE ISSUER SHOULD BE BASED ON CONSIDERATION BY THE INVESTOR, WITH THE AID OF INFORMATION CONTAINED IN THE SHELF PROSPECTUS, THE APPLICABLE

PRICING SUPPLEMENT AND DOCUMENTS INCORPORATED BY REFERENCE THEREIN AS A WHOLE.

The Ekiti State Executive Council (“EXCO”) on behalf of Ekiti State Government accepts full responsibility for the accuracy of the information contained in this Shelf Prospectus. The EXCO has taken reasonable care to ensure that the facts contained herein

are true and accurate in all respects and confirm, having made all reasonable enquires, that to the best of their knowledge and belief, there are no material facts, the omission of which would make any statement contained herein misleading or untrue.

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TABLE OF CONTENTS

1. DEFINITIONS 3

2. PARTIES TO THE BOND ISSUE 6

3 DECLRATION OF THE ISSUER 11

4 PROGRAMME DESCRIPTION 12

5 SUMMARY OF THE PROGRAMME 13

6 TERMS AND CONDITIONS OF THE PROGRAMME 17

7 FORM OF PRICING SUPPLEMENT 21

8 OVERVIEW OF THE NIGERIAN ECONOMY 24

9 OVERVIEW OF EKITI STATE 30

10 REPRESENTATIVES OF THE EKITI STATE EXECUTIVE COUNCIL

32

11 PROFILES OF MEMBERS OF EKITI STATE EXECUTIVE COUNCIL 34

12 RISK AND MITIGATING FACTORS 40

13 EXTRACT FROM THE RATING REPORT 43

14 HISTORICAL ACCOUNTS 46

15 STATUTORY AND GENERAL INFORMATION 75

16 EXTRACT OF THE PROGRAMME TRUST DEED 78

17 RECEIVING AGENTS 85

18 PROCEDURE FOR APPLICATION AND ALLOTMENT 86

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1. DEFINITIONS

Unless the context otherwise requires, the following expressions shall have the meanings

respectively assigned to them:

“Auditor” The Auditor General of the State. “Authorized Representatives” The persons duly authorised by the State to make the

declarations and representations in Part 3 of this Shelf Prospectus.

“Bond Issue” or “the Offer ” The issuance of any tranche of Bonds by the State pursuant to

the Programme constituted by the Trust Deed and upon the terms and conditions stipulated in the Shelf Prospectus and the applicable Pricing Supplement.

“Bondholders” or “Holders” Any person for the time being entered in the Register a n d / or

the Central Securities Clearing System (CSCS) as a holder of a unit or units of the Bonds and includes persons so registered as joint holders.

“Business Day” Monday to Friday excluding any day designated as a public holiday by the FGN.

“CAMA” Companies & Allied Matters Act Cap C20, LFN 2004.

“CBN” The Central Bank of Nigeria.

“Certificates” The certificates to be issued in respect of the Bonds in the form or substantially in the form prescribed or held in such other dematerialized form as may be prescribed as evidence of respective holdings.

“CITA” Companies Income Tax Act Cap C21, LFN 2004.

“Coupon”

Refers to the specified rate of interest on a Bond.

“Coupon Payment Date” The Semi-annual dates on which interest is paid to the Bondholders commencing six months from the bond issue date.

“CSCS” The Central Securities Clearing System.

“EKSG”, “the State” or “the “Issuer”

Ekiti State Government of Nigeria.

“Exco Members” Members of the State Executive Council.

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DEFINITIONS (CONT’D)

"Federation Account" The special account set up under Section 162(1) of the Constitution of the Federal Republic of Nigeria, 1999 into which is paid all revenues collected by the FGN to be distributed among the Federal, State and Local Governments, on such terms and in such manner as may be prescribed by the National Assembly.

"FGN" Federal Government of Nigeria.

“Lead Issuing House and Book Runner”

Greenwich Trust Limited.

“GDP” Gross Domestic Product.

“IGR” Internally Generated Revenue of the State.

“Interest Rate” Such rate of interest as is payable by the Issuer on the Bonds,

which may be fixed or floating as determined from time to time upon each issue.

"ISA" Investments & Securities Act. No. 29, 2007.

"ISPO" The Irrevocable Standing Payment Order issued by the State's Accountant-General to the Accountant-General of the Federation for the periodic deduction of monies from the State's statutory allocation from the Federation Account and payment thereof into a Sinking Fund held by the Trustees by way of security for the Coupon payment and subsequent retirement of the Bonds.

"Joint Issuing Houses" or "JIH’s"

Greenwich Trust Limited, UBA Capital Limited, Skye Financial Services Limited, Fidelity Bank Plc, FBN Capital Limited, Capital Bancorp Limited, MorganCapital Securities Limited, Chapel Hill Advisory Partners Limited and BGL Plc.

"LFN" Laws of the Federation of Nigeria.

"MTSS" Medium Term Sector Strategies.

"Naira" or "N" The Nigerian currency.

“Pension Act” Pension Reform Act Cap P4, LFN 2004.

“PFAs” Pension Fund Administrators.

“Programme” or “Debt Issuance Programme”

The N25,000,000,000 Debt Issuance Programme described in the Shelf Prospectus pursuant to which the State may issue tranches of bonds from time to time, the maximum total value outstanding of which may not exceed N25,000,000,000.00.

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DEFINITIONS (CONT’D)

“Pricing Supplement” or “Supplementary Shelf Prospectus”

In relation to a tranche, the final terms specifying the relevant issue details in relation to that tranche, setting out such additional information that supplements the terms and conditions in, and incorporates by reference, the Shelf Prospectus and all documents incorporated by reference therein, and should be read in conjunction with the Prospectus.

“Receiving Agents” Market operators authorized to receive application forms/monies from investors for the Programme.

“Receiving Banks” Access Bank Plc, Intercontinental Bank Plc, First City Monument

Bank Plc, United Bank for Africa Plc and Zenith Bank Plc.

“Record Date” The date at which the list of Bondholders is extracted from the register for the purpose of making coupon payments.

“Registrars” Wema Registrars Limited.

“SEC” or the “Commission” Securities & Exchange Commission.

“Sinking Fund” The fund established pursuant to the provisions of Section 251 of the ISA to be administered by the Trustees on behalf of the Bondholders, for the purpose of effecting payment of coupon and principal obligations on the Bond Issue.

“Stockbrokers” Anchoria Investment and Securities Limited, Cowry Asset Management Limited, Fidelity Securities Limited, Fountain Securities Limited, Greenwich Securities Limited, Independent Securities Limited, Interstate Securities Limited, Lead Securities and Investment Limited, MBC Securities Limited, Partnership Investment Company Limited and Skye Bank Stockbrokers Limited.

"The NSE" or "The Exchange" The Nigerian Stock Exchange.

“The Bonds Law" Ekiti State Bonds, Notes and Other Securities Issuance Law 2011.

"Joint Trustees" Means Skye Trustees Limited, UBA Trustees Limited and Union Trustees Limited or any other trustee or trustees for the time being appointed under the Trust Deed or in replacement of any existing trustee.

“Trust Deed” The agreement dated xxxx, 2011 appointing the Trustees for the management of the respective Sinking Fund(s) to be established in respect of the Bond Issues.

“Trustees Act” Trustees Investment Act Cap T22, LFN 2004.

“USD” or “$” The lawful currency of the United States of America.

“VAT” Value Added Tax.

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2. PARTIES TO THE BOND ISSUE

The Issuer: Ekiti State Government Government House Ado-Ekiti Ekiti State

Representatives of the State Executive Council:

His Excellency Dr. Kayode Fayemi Executive Governor and Chairman, State Executive Council His Excellency Mrs. OluFunmilayo Adunni Olayinka Deputy Governor Alhaji (Dr.) Ganiyu Owolabi Secretary to the State Government Dapo Kolawole Honourable Commissioner, Ministry of Finance and Economic Development Mr. Oyebanji Abiodun Honourable Commissioner, Ministry of Integration and Inter-Governmental Affairs Barrister Dayo Akinlaja Honourable Commissioner for Justice & Attorney General, Ministry of Justice Dr. (Mrs.) Eniola Ajayi Honourable Commissioner, Ministry of Education, Science and Technology Otunba Remi Adebayo Bodunrin Honourable Commissioner, Ministry of Commerce, Industries, Cooperative and Tourism Chief Folorunso Bamidele Olabode Honourable Commissioner, Ministry for Youths, Sports and Social Development Dr. Adio Folayan Honourable Commissioner, Ministry of Agriculture &Rural Development Fola Richie Adewusi Honourable Commissioner, Ministry for Women Affairs, Social Development and Gender Empowerment Adesola Adebayo Honourable Commissioner, Ministry for Works & Infrastructures

Mr. Kayode Olaosebikan Honourable Commissioner, Ministry of Physical, Urban and Regional Planning Alh. Jinadu Ayodele Honourable Commissioner, Ministry for Culture, Art and Tourism Apalara Wole Adewumi Honourable Commissioner, Ministry of Housing & Environment Dr. Wole Olugboji Honourable Commissioner, Ministry of Health Hon. Funminiyi Afuye Honourable Commissioner of Information Communication, Civic Orientation and Strategy Omotosho Paul Ayodele Honourable Commissioner, Ministry of Special Duties Mrs. Olubunmi Adelugba Honourable Commissioner, Ministry Of Employment, Labour and Human Capital Development Chief Emmaual Dayo Fadipe Honourable Commissioner, Ministry of Local Government and Chieftaincy Affairs

Attorney General to the State Government:

Barrister Dayo Akinlaja Ministry of Justice

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PARTIES TO THE BOND ISSUE (CONT’D)

Auditor General of the State: Mr. Adedayo Gabrial Ajayi

Ministry of Finance

Accountant General of the State:

Mr. A.B. Owolabi Ministry of Finance

Lead Issuing House/Book Runner:

Greenwich Trust Limited Plot 1698A, Oyin Jolayemi Street Victoria Island Lagos

Joint Issuing Houses/Co Book Runners:

UBA Capital Limited UBA House 57, Marina Lagos Skye Financial Services Limited Plot 287, Ajose Adeogun Street Victoria Island Lagos Fidelity Bank Plc Fidelity Plaza 2, Kofo Abayomi Street Victoria Island Lagos FBN Capital Limited 16, Keffi Street South West Ikoyi Lagos Capital Bancorp Limited 3rd & 4th Floors 9/11, Macarthy Street Onikan Lagos MorganCapital Securities Limited The Pent Floor 3, Biaduo Street, Off Keffi Street South-West Ikoyi Lagos Chapel Hill Advisory Partners Limited 45, Saka Tinubu Street Victoria Island Lagos BGL Plc No 12A, Catholic Mission Street Lagos Island Lagos

Lead Stockbroker: Greenwich Securities Limited

Plot 1698A, Oyin Jolayemi Street Victoria Island Lagos

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PARTIES TO THE BOND ISSUE (CONT’D)

Joint Stockbrokers: Anchoria Investment and Securities Limited

112, Lewis Street Lagos Cowry Asset Management Plot 1319, Karimu Ikotun Street Victoria Island Lagos Fidelity Securities Limited Plot 688, Amodu Tijani Street Victoria Island Lagos Fountain Securities Limited 2nd Floor Agbeke House 107, Bamgbose Street Marina Lagos Independent Securities Limited 8, Idowu Taylor Street Victoria Island Lagos Interstate Securities Limited 14B, Keffi Street South West Ikoyi Lagos Lead Securities and Investment Limited Plot 281, Ajose Adeogun Victoria Island Lagos.

MBC Securities Limited 2nd floor South Atlantic Petroleum Towers 7, Adeola Odeku, Victoria Island Lagos Partnership Investments Company Limited 37, Ademola Street South-West Ikoyi Lagos Skye Stockbrokers Limited 3rd Floor Skye Bank Building 30, Marina Lagos

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PARTIES TO THE BOND ISSUE (CONT’D)

Joint Trustees: Skye Trustees Limited

3rd Floor Skye Bank Building 30, Marina Lagos UBA Trustees Limited 15th Floor UBA House 57, Marina Lagos Union Trustees Limited 1st Floor Kingsway Building 2, Davis Street Lagos

Joint Solicitors to the Trustees:

ABFR & Co. 9, Langtery Close Off Ibadan Street Garki Area III Abuja George Ikoli & Okagbue Plot 864B, Bishop Aboyade Cole Street Victoria Island Lagos Tokunbo Orimobi & Co. 52/54, Murtala Muhammed Way 1st Floor, UBA/WEMA Bank Building Oyingbo, Ebute Metta Lagos

Joint Solicitors to the Issue: Simmons Coopers & Partners Fortune Towers (9th Floor) 27/29, Adeyemo Alakija Street, Victoria Island Lagos SPA Ajibade & Co. Suite 301, SPAACO House 27A, Macarthy Street Onikan Tony Uponi & Co. 91A (3rd Floor), Lewis Street Lagos

Reporting Accountant: Balogun Badejo & Co. 24, Ilupeju By-Pass Ilupeju Lagos

Registrars: Wema Registrars Limited A.G. Leventis Building 2nd Floor 42/43, Marina Lagos

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PARTIES TO THE BOND ISSUE (CONT’D)

Rating Agencies: Agusto & Co. Limited

UBA House (5th Floor) 57, Marina Lagos Global Credit Rating Company Limited 17th Floor New Africa House 31, Marina Lagos

Receiving Banks: Access Bank Plc Plot 1665, Oyin Jolayemi Street Victoria Island Lagos First City Monument Bank Plc Primrose Towers 17A Tinubu Street Lagos State Intercontinental Bank Plc Intercontinental Plaza Danmola Street Victoria Island Lagos UBA Plc UBA House 57, Marina Lagos Zenith Bank Plc Plot 84, Ajose Adeogun Street Victoria Island Lagos

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3. DECLARATION BY THE ISSUER

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4. PROGRAMME DESCRIPTION

Under this N25,000,000,000.00 Bond Issuance Programme, the State may issue from time to time, Fixed Rate or Floating Rate Bonds and any combination thereof (“the Bonds”) through one or more of the Joint Issuing Houses/Book Runners, or any additional party appointed under the Programme by the Issuer. The maximum aggregate principal amount of the Bonds at anytime outstanding under the Programme will not exceed N25,000,000,000.00 (the “Programme Limit”). The terms and conditions applicable for the issuance of Bonds under the Programme shall be established at the Issuer’s initiative, taking into consideration its financial requirements and the conditions in the Nigerian Capital Market. These terms and conditions will be determined by the Issuer and the Joint Issuing Houses/Book Runners and shall be set out in the applicable Pricing Supplement. A Pricing Supplement shall contain the terms and conditions of each Tranche of Bonds to be issued. The Bonds may be issued on a continuing basis through one or more of the Joint Issuing Houses/Book Runners. The Bonds may be distributed by way of a Public Offer for subscription or Book Build or any other method as may be approved by SEC. The method of distribution of each Tranche will be stated in the applicable Pricing Supplement. The Bonds will be issued in such denomination as may be agreed between the Issuer and the relevant Issuing House(s) and as indicated in the applicable Pricing Supplement. The Bonds will be secured by way of an Irrevocable Standing Payment Order (ISPO) and by any other security as will be specified at the issuance of the Bonds and provided in the applicable Pricing Supplement. The Bonds will be listed on the Floor of the Nigerian Stock Exchange (NSE). All Bonds issued on the basis of this Programme shall have ratings assigned to them. Other terms and conditions of the Bonds are, or shall be specified in this Shelf Prospectus, any supplemental Shelf Prospectus and the applicable Pricing Supplement. This Programme shall be valid for a period of 24 months from the day of its approval by the Commission. If at any time the Issuer shall be required to prepare a Supplementary Shelf Prospectus pursuant to Rule 40(C) of the Rules and Regulations of the Commission in order to update or amend this Shelf Prospectus, without limitation, to include information changes, if any, in relation to the Issuer since the date of this Shelf Prospectus; in addition to such other information as may be required by the Rules and Regulations of the SEC on the content of a prospectus. The Issuer will prepare and make available an appropriate amendment or supplement to this Shelf Prospectus or a further prospectus which, in respect of any subsequent issue of Bonds, shall constitute a Supplemental Shelf Prospectus. STATEMENT OF INDEBTEDNESS: As at December 31, 2010, Ekiti State Government has outstanding local and foreign commercial loans totalling N9,458,747,770.02. Other than as stated above, the State had no outstanding debentures, mortgages, loans, charges or similar indebtedness or material contingent liabilities other than in the ordinary course of governance.

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5. SUMMARY OF THE PROGRAMME This summary information should be read in conjunction with the full text of this Shelf Prospectus, from where it

is derived. The information below is a brief summary of the key features of the Programme, a description of the Issuer and, to the extent applicable, the summary of the terms and conditions of the Bonds. This Summary

should be read as an introduction to this Prospectus. It does not purport to be complete and is taken from, and qualified in its entirety by the remainder of this Prospectus as a whole.

1. Issuer: Ekiti State Government (the “State” or “Issuer")

2. Programme Limit: N25,000,000,000.00 (Twenty Five Billion Naira)

3. Programme Description:

A Programme of long term debt instruments with a tenor of up to 7 years and secured by an Irrevocable Standing Payment Order (ISPO). The Bonds shall be constituted by a Trust Deed. The Bonds issued under this programme shall be accorded a shelf registration with the Securities & Exchange Commission (SEC) for a two (2) year period commencing on the date of the issue of this Prospectus. No Bonds shall be issued under this programme after the expiration of the two (2) year validity period.

4. Use of Proceeds: The use of proceeds for the applicable tranche of the Bonds issued

under the Programme shall be specified in the applicable Pricing Supplement.

5. Financial Adviser/ Lead Issuing House/Lead Book Runner:

Greenwich Trust Limited.

6. Joint Issuing

Houses/Co Book Runners:

UBA Capital Limited, Skye Financial Services Limited, Fidelity Bank

Plc, FBN Capital Limited, Capital Bancorp Limited, MorganCapital

Securities Limited, Chapel Hill Advisory Partners Limited and BGL

Plc.

7. Joint Trustees: Skye Trustees Limited; UBA Trustees Limited and Union Trustees

Limited.

8. Issue Price: Bonds may be issued at par, at a discount or a premium to par.

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SUMMARY OF THE PROGRAMME (CONT’D) 9. Type of Bonds to be

issued under the Programme:

The following form of Bonds may be issued under the Programme as specified in the applicable Pricing Supplement: Fixed Rate Bonds Where any tranche of the Bonds are Fixed Rate Bonds, such Bonds shall bear interest at a fixed rate and will be payable for each Tranche in arrears on such date(s) and at such rate (s) as specified in the Conditions and/or applicable Pricing Supplement. Floating Rate Bonds Where any tranche of the Bonds are Floating Rate Bonds the interest rate applicable will be determined in accordance with the market conditions and/or the applicable Pricing Supplement.

10. Method of Offer: Bonds may be offered and sold by way of a public offer or any other

method of issuance approved by the SEC and specified in the applicable Pricing Supplement.

11. Closing Date: The closing date of each tranche of Bonds shall be stated in the

applicable Pricing Supplement relating to the tranche of Bonds to be issued.

12. Tenor: The tenor of a particular tranche shall be determined by the Issuer

and the Joint Issuing Houses and will be specified accordingly in the applicable Pricing Supplement for the Bonds being issued.

13. Currency: The Bonds shall be denominated in Naira (N). 14. Day Count

Fraction: Actual/365 (actual number of days in a month and 365 days in a year). Different day count conventions may be stipulated in the applicable Pricing Supplement.

15. Repayment: Repayment terms in respect of the Bonds issued under the Programme shall be specified in the applicable Pricing Supplement issued for each tranche of Bonds being issued.

16. Frequency: The frequency of payment of interest and any other monies due on the Bonds shall be specified in the applicable Pricing Supplement for the tranche being issued.

17. Interest Rate: The interest, if any, payable on the Bonds shall be determined by the Issuer and the Joint Issuing Houses and will be stated accordingly in the Pricing Supplement for the tranche of Bonds being issued.

18. Business day

Convention: Modified Following: Where a coupon payment date falls on a non-business day, such payment shall be postponed to the next business day. If it falls into the next calendar month, such coupon payment date shall be brought forward to the immediate preceding business day.

19. Taxation: All payments made to Bondholders shall be free and clear of Withholding, State and Federal Income and Capital Gains Taxes with no deduction made whatsoever at source. in accordance with FGN tax policy on bonds.

20. Subscription of Bond:

The Bonds shall be subscribed to in accordance with the application form set out in the Pricing Supplement relating to the Bonds being issued.

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SUMMARY OF THE PROGRAMME (CONT’D)

21. Security: Each tranche to be issued will be constituted under a Supplemental Trust Deed which will provide for the maintenance of a Sinking Fund managed by the Trustees who shall hold a charge in favour of the Bondholders.

Each tranche will also be fully backed by an Irrevocable Standing Payment Order (“ISPO”) issued by the State to the Accountant General of the Federation. The ISPO authorizes direct deductions from the State’s monthly Federal Allocation of such sums required to service each Bond and also make scheduled repayments of both principal and interest until maturity.

22. Form of

Bonds/Transferability: The Bonds will be issued in registered form and shall be freely transferable in accordance with the provision of the Programme Supplemental Trust Deed. The Bonds may be initially represented by certificate(s). Where the Bonds are represented by certificates, the certificate(s) will be confirmed by the Registrar and may be dematerialized and held in electronic book entry form at the CSCS depository.

23. Early Redemption: The applicable Pricing Supplement issued for each tranche of Bonds will state if such Bonds are redeemable by the Issuer prior to the stated date of maturity and the terms applicable to such redemption.

24. Grossing Up: All amounts payable under the Bonds will be paid in full without set-off or counterclaim or other restrictions and free and clear of and without any deductions or withholding for or on account of any taxes or any charge or otherwise.

25. Quotation: An application shall be filed with the Council of the NSE for the admission of the Programme to the Daily Official List of the Exchange.

26. Claims and Litigation: A total of Seventy Five (75) cases were made available to the Joint Solicitors to the Offer. A review of these cases was conducted with a view to confirming their status and ascertaining the “Contingency Liability” of the State. The Joint Solicitors to the Offer then considered that Thirty Six 36 cases instituted against the State were material on the basis that the monetary claims or total liability against the State in each of them was above One Million Naira (N1,000,000.00) or could be of significance due to the subject matter, even though the monetary claims was unascertainable at the time of the review. The Joint Solicitors to the Offer are of the opinion that the total contingent liability of the Ekiti State Government arising out of litigation will not exceed the sum of N1,112,966,571.33(One Billion, One Hundred and Twelve Million, Nine Hundred and Sixty-Six Thousand, Five Hundred and Seventy-One Naira Thirty-Three Kobo).

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SUMMARY OF THE PROGRAMME (CONT’D)

27. Governing Law: Nigerian Law:

- The Constitution of the Federal Republic of Nigeria, 1999 - The Fiscal Responsibility Act, 2007 - Investments and Securities Act, 2007 - Ekiti State Bonds, Notes and Other Securities Issuance Law 2011

28. Transaction

Documents: -Shelf Prospectus -Pricing Supplement -Trust Deed -Supplemental Trust Deed(s) -Vending Agreement -Joint Issuing Houses Agreement -Irrevocable Standing Payment Order issued by the Governor of Ekiti State

-Letter of approval from the Federal Ministry of Finance authorising the Accountant General of the Federation to deduct at source from the statutory allocation of Ekiti State.

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6. TERMS AND CONDITIONS OF THE PROGRAMME

The following is the text of the terms and conditions which, as supplemented, amended and/or replaced by the applicable Pricing Supplement, will be endorsed on or attached to the Bonds issued under the Programme.

Further information with respect to Bonds of each Tranche will be given in the applicable Pricing Supplement, which will provide for those aspects of these terms and conditions which are applicable to those Bonds. Certain

provisions of these terms and conditions are summaries of, and are subject to, the detailed provisions of the Trust Deed.

The Resolution of the Executive Council of the Ekiti State Government passed on 9th day of March, 2011, authorised the issuance of Bonds up to an aggregate principal amount of N25,000,000,000.00 (Twenty Five Billion Naira) (the “Programme”) pursuant to the Ekiti State Bonds, Notes and Other Securities Issuance Bill 2011.

Bonds issued under the Programme shall be issued in tranches (“Tranche”). Each tranche is subject to a Pricing Supplement (the “Pricing Supplement”) which supplements these terms and conditions (the “Conditions”). The terms and conditions applicable to any particular tranche of Bonds are these Conditions as supplemented, amended and/or replaced by the applicable Pricing Supplement. In the event of any inconsistency between these Conditions and the applicable Pricing Supplement, the Pricing Supplement shall prevail.

The Bonds are constituted by a Programme Trust Deed dated [●] 2011 (the "Programme Trust Deed") between the Ekiti State Government, Skye Trustees Limited, UBA Trustees Limited and Union Trustees Limited (the "Trustees", which expression shall include any person or persons for the time being appointed as the trustee or trustees under the Trust Deed) as trustee for the holders (as defined below) of the Bonds (the “Bondholders”). Each Tranche shall be constituted by a Supplemental Trust Deed.

The Bondholders are entitled to the benefit of, are bound by, and are deemed to have notice of all the provisions of the Programme Trust Deed. Copies of the Trust Deed are available for inspection at the Specified Offices of the Trustees: Skye Trustees Limited, Skye Bank Building (3rd Floor) 30, Marina, Lagos, Union Trustees Limited, 2, Davies Street (1st Floor), Marina, Lagos and UBA Trustees Limited (15th Floor) UBA House, 57, Marina, Lagos and at the specified office of the Registrar. The Registrar’s registered office is at WEMA Registrars Limited located at 24, Oba Akran Avenue, Ikeja Lagos.

Words and expressions defined in the Trust Deed (as same has been and may be amended, varied or supplemented from time to time with the consent of the parties thereto) are expressly and specifically incorporated to and shall apply to these Conditions.

1. The Bonds

The Issuer of the Bonds is the Ekiti State Government of Nigeria. Pursuant to Section 3 of the Law, the State House of Assembly has authorised the borrowing of monies by way of the issue of Bonds. The Bonds may be issued from time to time, subject to the applicable terms of this Shelf Prospectus, by means of a Private Placement, a Public Offering and/or any other such methods as described in the relevant SSP and/or Pricing Supplement.

The Programme and the Bonds to be issued thereunder have the benefit of a trust deed (such trust deed as amended and/or supplemented and/or restated from time to time, the “Programme Trust Deed”) dated [•] 2011.

The Trustees act for the benefit of the Bondholders (which expression shall mean the several persons whose names are entered in the register of holders of the Bonds (the “Register”) as the holders thereof in accordance with the provisions of the Programme Trust Deed. The Bondholders are deemed to have notice of, and are entitled to the benefit of, all the provisions of the Programme Trust Deed, the relevant Supplemental Trust Deed, the relevant SSP and/or Pricing Supplement and other transaction documents which are applicable to them. The statements in this Shelf Prospectus include summaries of, and are subject to, the detailed provisions of the Programme Trust Deed.

Words and expressions defined in the Supplemental Trust Deed or used in the applicable Supplementary Shelf Prospectus and/or Pricing Supplement shall have the same meanings where used in this Programme Trust Deed unless the context otherwise requires or unless otherwise stated and provided that, in the event of inconsistency between the Programme Trust Deed and the Shelf Prospectus, the Programme Trust Deed will prevail.

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TERMS AND CONDITIONS OF THE PROGRAMME (CONT’D)

2. Form, Denomination and Transfer

(a) The Bonds will be issued in registered form and in Series. Each Tranche will be the

subject of an SSP and/or Pricing Supplement prepared on behalf of the State by duly appointed Issuing Houses, in which the terms set forth may supplement or vary any of these Conditions. The Bonds may be a Fixed Rate Bond, a Floating Rate Bond, a Zero Coupon Bond, an Index-Linked Interest Bond or any combination of the foregoing, depending on the terms in the applicable SSP or Pricing Supplement.

(b) All allotments for the Bonds issued under the Programme shall be in physical

certificates except otherwise waived by a Bondholder in favour of electronic allotments by formal application. Upon allotment and entry of the name of such allottee in the Register of Bondholders, the Issuer, the Trustees and the Registrars will (except as otherwise required by law and the Programme Trust Deed) deem and treat such registered holder of the Bonds as the absolute owner thereof (notwithstanding any notice of ownership or trust thereon or notice of previous loss or theft thereof) for the purpose of making payments and for all other purposes.

For as long as a holding of the Bonds is represented in electronic form with the CSCS, a CSCS Statement shall be conclusive and binding for all purposes as definitive evidence of the person(s) shown in the records of CSCS as the holder of a particular nominal amount of such Bonds standing to the credit of the account of such person, save in case of manifest error and the holder thereof shall be treated by the Issuer and the Trustees as the holder of such nominal amount of such Bonds.

(c) Bonds issued under the Programme will have the right of survivorship in accordance

with the provisions of the ISA. Organisations or trusts which are not incorporated should complete their application in the full name(s) of the partner(s) or Trustees(s). No notice of any trust in respect of any Bonds will be entered in the register or receivable by the Registrars.

(d) Transfers of beneficial interest in the Bonds issued under the Programme will be

effected in accordance with the provisions of the Programme Trust Deed and the ISA. The Bonds may be transferred in whole or in part and in the authorised denominations set out in the applicable SSP or Pricing Supplement. In order to effect any such transfer (i) the holder or holders must (a) lodge the Bonds for transfer at the specified office of the Registrars and (b) complete and deposit the instrument of transfer in respect thereof duly executed by the holder or holders thereof or its or their attorney or attorneys duly authorised in writing at the specified office of the Registrars and upon payment of the prescribed fee (if any). The Registrars, being satisfied with the documents of title and identity of the person making the request, shall effect the transfer and post a written notice of receipt of an application of transfer to the registered holder in whose name the application is made.

3. Status

The Bonds issued under the Programme are senior bonds and constitute direct obligations of the Issuer. The Bonds qualify as securities in which Trustees may invest under the Trustees Act and qualify as “Government Securities” within the meaning of CITA and PITA, for purposes of tax exemption. The Bonds also qualify as securities in which PFAs may invest under the Pension Reform Act and the Regulations on Investment of Pension Fund Assets issued by the National Pension Commission. The Bonds are also acceptable pledging collateral for accessing CBN Expanded Discount Window obligations.

19

TERMS AND CONDITIONS OF THE PROGRAMME (CONT’D)

4. Repayment Structure

The Law provides for Bonds issued under the Programme to be payable from and secured by a first charge on the Pledged Revenues. Payment of the Principal and Interest for Bonds issued under the Programme will be made from separate Sinking Funds to be created for each Tranche and managed by the Trustees for the benefit of the Bondholders as set out in the Programme Trust Deed and applicable Supplemental Trust Deeds. The Sinking Funds shall be funded from the following sources:

a) An ISPO, pursuant to which deductions shall be made on a monthly basis from the

State’s share of the Federation Account; and b) The Debt Service Fund, established pursuant to the Law for the purpose of

accumulation of monies to make required payments for all liabilities and obligations of the State under the Programme.

5. Events of Default and Remedies

An event of default (“Event of Default”) shall be triggered if the Issuer fails to pay or fails to cause to be paid, when due, or declares a moratorium on the payment of, or to repudiate any Bonds issued under the Programme. The Programme Trust Deed sets out detailed Events of Default and remedial procedures available to the Trustees acting on behalf of Bondholders.

6. Payments

Interest and principal payments in a Specified Currency will be made by credit to the bank account of the Bondholder as specified on the applicable application form. If a bank account has not been provided for this purpose, Interest will be withheld until the relevant bank account details have been provided. No additional Interest will be paid on any amounts withheld. The Bondholder shall be the only person entitled to receive payments in respect of Bonds issued under the Programme and the Issuer will be discharged by payment to, or to the order of, the Bondholder in respect of each amount so paid.

7. Redemption and Purchase

(a) Redemption at Maturity

Unless previously redeemed or purchased or cancelled as specified below, the Bonds will be redeemed by the Issuer at its Final Redemption Amount specified in, or determined in the manner specified in the applicable SSP or Pricing Supplement in the relevant Specified Currency on the Maturity Date.

(b) Redemption at the option of the Issuer (Issuer Call)

If an Issuer Call Option is specified in the applicable SSP or Pricing Supplement, the Issuer may, having given not less than 30 nor more than 60 days’ notice to the Trustees in accordance with the Supplemental Trust Deed; which notice shall be irrevocable and shall specify the date fixed for redemption, redeem all or part of the Bonds.

8. Tax Considerations

All payments of principal, interest and any other sum due in respect of the Bonds shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges of whatsoever nature imposed, levied, collected, withheld or assessed by or within the Federal Republic of Nigeria or any political subdivision or any authority thereof or therein having power to tax.

20

TERMS AND CONDITIONS OF THE PROGRAMME (CONT’D)

9. Clearing and Settlement

The CSCS shall act as the Depository and Clearing Agent for all the Bonds issued in dematerialised form under the Programme. The CSCS will be responsible for maintaining the book-entry accounts for the Bondholders and/or Dealers named in an accompanying SSP having interests in the Bonds. Each Dealer will be a CSCS Participant. If (i) the book-entry system ceases to exist, (ii) the Issuer determines that the CSCS is no longer willing or able to discharge its responsibilities as depository with respect to the Bonds and the Issuer is unable to locate a qualified successor, or (iii) the Bondholders at their option elect, or the Issuer is required by applicable law or the rules of any securities exchange, to withdraw the Bonds from the book-entry system, then physical certificates will be issued to Bondholders thereof or their nominees.

10. Listing The Bond shall be registered and listed. An application will be made to the council of the

Nigerian Stock Exchange for the admission of the Bonds to its official daily list.

21

7. FORM OF THE PRICING SUPPLEMENT Set out below is the form of the Pricing Supplement which will be completed by the issuer for each Tranche of

Bonds issued under the Programme:

PRICING SUPPLEMENT

TO THE SHELF PROSPECTUS DATED [•]

EKITI STATE GOVERNMENT OF NIGERIA

Issue of [aggregate principal amount of Tranche] [title of bonds]

Under the Ekiti State Government of Nigeria N25,000,000,000.00 Bond Issuance Programme

Issue price: [●] per unit

Payable in full on application

Application list opens: [●

] Application list closes: [●]

This Pricing Supplement is prepared for the purpose of rule 40(c) of the rules and regulations of the Securities & Exchange Commission (“the Commission” or SEC) in connection with the N25,000,000,000.00 Bonds Issue established by Ekiti State

Government of Nigeria (“the Issuer”). This Pricing Supplement is supplemental to, and should be read in conjunction with, the Shelf Prospectus dated [●] 2011 and any other supplements to the Shelf Prospectus to be issued by the Issuer. Terms defined

in the Shelf Prospectus have the same meaning when used in this Pricing Supplement.

To the extent that there is any conflict or inconsistency between the contents of this Pricing Supplement and the Shelf Prospectus, the provisions of this Pricing Supplement shall prevail. This Pricing Supplement may be used to offer and sell the

Bonds only if accompanied by the Shelf Prospectus. Copies of the Shelf Prospectus can be obtained from any of the Joint Issuing Houses.

The registration of the Shelf Prospectus and this Pricing Supplement shall not be taken to indicate that the Commission endorses or recommends the Bonds or assumes responsibility for the correctness of any statements made or opinions or reports

expressed in the Shelf Prospectus or this Pricing Supplement. No Bonds will be allotted or issued on the basis of the Shelf Prospectus read together with this Pricing Supplement later than two years after the date of the issue of the Shelf Prospectus.

This Pricing Supplement contains particulars in compliance with the requirements of the Commission for the purpose of giving

information with regard to the Bonds being issued hereunder (the “Tranche 1 Bonds” or “Bonds”). Application has been made to the Council of the Exchange for the admission of the Bonds to the Daily Official List of the Exchange. The Bonds now being issued will upon admission to the Daily Official List qualify as a Security in which Trustees may invest under the Trustee

Investments Act (Cap T22) Laws of the Federation of Nigeria, 2004. The Bonds also qualify as a Government Security under Section 20(1) (g) of the Personal Income Tax Act, Cap P8, LFN, 2004 as well as Section (19)(2) of the Companies Income Tax

Act, Cap C21, LFN, 2004.

The Issuer accepts full responsibility for the accuracy of the information contained in this Pricing Supplement. The Issuer declares that having taken reasonable care to ensure that such is the case, the information contained in this Pricing Supplement

is, to the best of its knowledge, in accordance with the facts and does not omit anything likely to affect the import of such information and that save as disclosed herein, no other significant new factor, material mistake or inaccuracy relating to the information included in the Shelf Prospectus has arisen or has been noted, as the case may be, since the publication of the Shelf

Prospectus. Furthermore, the material facts contained herein are true and accurate in all material respects and the issuer confirms that, having made all reasonable enquiries, to the best of its knowledge and belief, there are no material facts, the

omission of which would make any statement contained herein misleading or untrue.

22

FINAL TERMS OF TRANCHE 1 BONDS

1. Issuer: Ekiti State Government

2. Tranche Number [●]

3. Type of Bond: [●]

4. Amount: [●]

5. Enabling Law: [●]

6. Issuer Rating: [TBD]

7. Bond Rating: [TBD]

8. Par Value: [●]

9. Units of Sale: [●]

10. Coupon Rate: [●]

11. Currency: [●]

12. Redemption: [●]

13. Method of

Offering: [●]

14. Offer Opens: [●]

15. Offer Closes: [●]

16. Maturity: [●]

17. Tenor: [●]

18. Day Count

Fraction: [●]

19. Repayment: [●]

20. Coupon Commencement Date:

[●]

21. Business day Convention:

[●]

22. Tax Qualification: All payments made to Bondholders shall be free and clear of Withholding, State and Federal Income and Capital Gains Taxes with no deduction made whatsoever at source in accordance with a Presidential wavier.

23. Listing: [●]

24. Status: Registered and Listed Bonds.

23

25. Security: [●]

26. Sinking Fund: [●]

27. Form of Bonds: [●]

28. Basis of Allotment: [●]

29. Governing Law: Nigerian Law: - The Constitution of the Federal Republic of Nigeria, 1999 - The Fiscal Responsibility Act, 2007 - Investment and Securities Act, 2007 - Ekiti State Bonds, Notes and Other Securities Issuance Law 2011

30. Appendix [●]

USE OF PROCEEDS The projects to be financed under this programme would be stated in the applicable Pricing Supplement to be issued within the shelf life of 24 months.

24

8. OVERVIEW OF THE NIGERIAN ECONOMY

The information in this section has been extracted from documents and publications publicly available and released by various public and private organisations such as the CBN, the Economic Intelligence Unit (EIU), the World Bank, International Monetary Fund, Nigerian Bureau of Statistics, other financial magazines and journals. The Issuer and its advisers have relied on the accuracy of this information without independent verification and make no representation as to its accuracy. Introduction The Federal Republic of Nigeria gained its independence on October 1, 1960. Nigeria is bounded by Cameroon to the East, Niger to the North, Benin to the West and the North Atlantic in the South. The country has a population of over 140 million citizens from over 250 ethnic groups governed under the rule of law administered through a Federal System of Government comprised of three tiers, namely the Federal Government, State Governments and Local Governments. Nigeria has Thirty-Six (36) States and a Federal Capital Territory (FCT). The mainstay of the Nigerian economy is based on export earnings from Agriculture and Crude Oil sale. Though the country is traditionally agrarian with agriculture contributing about 42% of the Gross Domestic Product (GDP), revenue from petroleum continues to dominate the public finances and is the major foreign exchange earner of Nigeria accounting for over 80% of the country’s revenue. However, the agricultural sector remains the major employer of labour when compared to the petroleum sector which is estimated to employ a little over a 100,000.

Politics & The Economy

Nigeria returned to civilian rule in 1999 after a succession of military administrations. President Olusegun Obasanjo assumed power on May 29, 1999 and was the head of government for two terms. In May 2007, the country made political history as there was a transfer of power from the Obasanjo administration to the late Alhaji Umaru Yar’ Adua thus making it the first successful transition of one civilian government to another in the nation’s history. As expected, the 2011 general elections went well amidst reports of irregularities in some areas of the Country. Although there are some security issues around the country, which the government has vowed to deal with decisively, it is expected that with the success of the elections across the country, the economy and the financial market are set to rebound. There are renewed commitments from the Federal Government to privatize the Power Holding Company of Nigeria (PHCN) by July 2011. If actualized, this singular action of the FGN is capable of thrusting the economy on a positive growth path. The Federal Government also plans to revise the 2011 Budget assumptions in order to ensure that it addresses the short-term needs of the economy in a non-inflationary manner. It is expected that the FGN, following the swearing-in of President Goodluck Ebele Jonathan, will have the political will to implement the much desired full deregulation of the downstream sector of the oil and gas industry in Nigeria. Analysts are confident that this will bring about a lower pricing regime for petroleum products in the country in the long run. This view is held because of the competition and the efficiency gains that is expected to set in, which will eventually trickle down to the consumers. The Local Content Act in the upstream sector of the Oil & Gas should also engender the development of the sector. The rising price of crude oil at the international market, in the face of improving oil production in Nigeria, should improve the foreign exchange earning capacity of the country with its positive impact on the foreign exchange rate. Already, the foreign reserves have been improving in response to these developments. The CBN has assured that it is committed to a stable exchange rate within a band of 3%. The policy thrust on exchange rate stability is informed by the overwhelming impact of exchange rate pass-through on inflation, given the import-dependent nature of the economy.

25

OVERVIEW OF THE NIGERIAN ECONOMY (CONT’D)

Nigeria’s growth record over the past seven quarters has averaged 7.19% driven by the non-oil sector and recently by the improved oil production following the amnesty deal of the FG. However, the non-oil sector is affected by the poor state of infrastructure; improving on this would have huge multiplier effects on the future growth capacity of the country. The current attention given to improve the state of infrastructure in the country (electricity and relevant transportation) should help to accelerate the growth of the economy.

External Debt

Available data from the Debt Management Office (DMO) shows that Nigeria’s total external debt stock as at March 31, 2011 stood at US$5,227.05m representing an increase of 14.16% from the December 31, 2010, figure of US$4,578.76m. The external debt as at March 2011 represents 14.29% of total debt stock of N5,681.05bn. The breakdown of the debt showed that 73.73% was owed to Multilaterals, which includes the World Bank Group, International Fund for Agricultural Development (IFAD), African Development Bank Group (ADB), International Development Bank (IDB) and Economic Development Fund (EDF); 6.69% was owed to Non-Paris Group of creditors and 9.57% was owed to others. . (Debt Management Office of Nigeria) Domestic Debt

The DMO puts Nigeria’s domestic debt stock at N4,869.02bn, as at March 31, 2011, representing an increase of 6.97% from N4,551.82bn as at December 31, 2010. The domestic debt stock for the same period represents about 85.71% of the total debt stock of N5,681.05tn. The breakdown of the total debt stock by instrument type revealed that the FGN Bonds accounted for N3,056.53tn, representing 62.78%; Nigerian Treasury Bills (NTBs) accounted for N1,439.59tn, representing 29.57% and Treasury Bonds (TBs) accounted for N372.90bn, representing 7.66%. . (Debt Management Office of Nigeria)

Monetary Policy

In line with the CBN Act, 2007, one of the principal functions of the Central Bank of Nigeria is to “ensure monetary policy and price stability”. In order to facilitate the attainment of the objective of price stability and to support the economic policy of the Federal Government, the Act provides the constitution of a twelve (12) man Monetary Policy Committee (MPC) with the Governor of the CBN as the Chairman. The CBN recognizes that achieving stable prices would require continuous assessment and evaluation of its monetary policy implementation framework to enable it respond to the ever-changing economic and financial environment. Based on the foregoing, the CBN introduced a new monetary policy framework that took effect on December 11, 2006 with the “Monetary Policy Rate” (MPR) as the Operating Target rate. The ultimate goal of this new framework was to achieve a stable value of the domestic currency through stability in short-term interest rates which serves as an indicative rate for transaction in the inter-bank money market as well as other Deposit Money Banks' (DMBs) interest rate.

The priority of the CBN is to reduce interest rates over time and sustain the lower rate such that it provides access to lower cost of funds for the development of the real sector. In September 2009, the MPR was reduced by 50 basis points from 10.25% to 9.75% in order to address the liquidity shortage in the economy and increase credit to the private sector. It was further reduced by 175 basis points to 8% in April 2009. Similarly, the liquidity ratio was reduced from 30% to 25%, and the Cash Reserve Requirement (CRR) was reduced from 2% to 1%. The MPR was subsequently decreased by 200 basis points to 6% in July 2009, and was increased to 6.25% in September 2010, and was recently increased during the January, March and may 2011 meetings of the MPC to 6.50%, 7.50% and 8% respectively. The major monetary policy challenges remain that of managing excess liquidity in a high interest rate environment. Apart from MPR being adjusted periodically, CBN has also engaged in the reduction of inflation rates from 2008 till date. Current data indicates that the Consumer Price Index (CPI) for the month of March 2011, released by the National Bureau of Statistics (NBS), showed that the inflation rate (year-on-year) in Nigeria increased by 1.7% to 12.80% from 11.10% recorded in the month of February 2011. . (Source Central Bank of Nigeria)

26

OVERVIEW OF THE NIGERIAN ECONOMY (CONT’D)

Fiscal Policy The earlier improvement in the overall budgetary position due to the oil-windfall quickly reversed as a result of weaker prices and declining output associated with regional unrest in 2009. In a quest to actualize the Federal Government developmental objective, the 2010 budget was concentrated on programmes or projects that were aimed towards stimulating national economic recovery. In doing so, about 90% of Federal Ministries, Departments and Agencies capital expenditure was allocated to only six key sectors: Niger Delta Development, Law and Order, Critical Infrastructure, Physical Security, Land Reform and Food Security, and Human Capital Development. To attain these goals, a total of N4.608bn was appropriated in the Federal Government 2010 Budget and was distributed as follow: statutory transfers (3.91%), debt servicing (10.79%), Capital expenditure (40.23%) and recurring non-debt expenditures (45.10%) respectively. The allocation of the total of 40.23% of the FGNs 2010 budget to capital projects/programmes represents a significant increase from the budgetary allocation of 29.66% and 28.96% in 2008 and 2009 respectively.

. (National Bureau of Statistics) Gross Domestic Product According to available statistics from the National Bureau of Statistics (NBS), the Real Gross Domestic Product (GDP) in Nigeria grew by 7.86% in Q3 2010, higher than the growth rate of 7.30% recorded in the corresponding period of 2009 and higher than the 7.69% recorded in Q2 2010. The growth rate of 7.86% in Q3 2010 is the highest growth rate recorded in recent times. Comparing quarter on quarter, real GDP increased by 0.56% in Q3 2010 over the level in the corresponding period of 2009, on account of the increased production in the oil sector and wholesale & retail trade activities in the economy. Looking at the breakdown of GDP into oil and non-oil sectors, the Nigerian economy is dominated by the non-oil sector, with a contribution of 84.62%, while the oil sector contributed 15.38% to output in Q3 2010. . (National Bureau of Statistics/Central Bank of Nigeria) Agriculture During the second quarter (April—June) of 2010, like other years, the major agricultural activities remained planting in the Northern part of the country and harvesting of matured crops in the southern part of the country. The Agricultural sector remains fragmented as it is largely dominated for the most part by peasants and a few large farms. The Agricultural sector is the largest contributor to the Gross Domestic Product (GDP) 42.32% and is the largest employer of labour. However, the FGN has proposed a N19,143bn amendment to the 2011 budget for the agricultural sector. Recent data from the National Bureau of Statistics shows that the Agricultural Sector may also have been constrained by the recent drop in the price of agricultural commodities as reflected in the Consumer Price Indices, which indicated that the average year-on-year change in food inflation in second quarter of 2010 was 12.9% as against 14.7% in the second quarter of 2009. The general decrease in food prices may have discouraged farmers in engaging in further expansion of their farming activities to full potentials in conformity with the spirit of the cobweb theorem of food price movements. In most of the surveys and censuses conducted by the National Bureau of Statistics (NBS), which is the major producer of agricultural statistics in Nigeria, crops and livestock are always considered together because of the tendency for most of the farmers to practice crop and livestock husbandry simultaneously. (National Bureau of Statistics) Solid Minerals The solid minerals sector has about 34 different categories of minerals and is currently being developed. Unfortunately, earnings from the sector accounts for only 0.3% of Nigeria’s GDP, due largely to the Country’s vast oil resources. Furthermore, the domestic mining industry is underdeveloped resulting in Nigeria having to import minerals that it could produce domestically.

27

OVERVIEW OF THE NIGERIAN ECONOMY (CONT’D)

Nigeria is endowed with mineral resources such as Tin, Iron Ore, Columbite, Coal etc. Until the 1960s, coal and tin were mined in places like Jos and exported on a large scale but poor management by state-owned enterprises led to a decline in existing operations. Solid Minerals offers a viable alternative to petroleum for foreign exchange earnings. Globally, the mining industry has been a close rival to the petroleum industry, although Nigeria currently earns about $89 million per annum from the Sector. . (Source: National Bureau of Statistics) Oil and Gas Production Multinational oil companies operate in partnership with NNPC under Joint Operating Agreements (JOAs) or Production Sharing Contracts (PSCs). Others, especially the indigenous oil companies, operate in partnership with international companies under sole risk or as independents. Nigeria's petroleum industry is well grounded in successful exploration, beginning with the first commercially viable discovery at Oloibiri in the Niger Delta in 1956 by Shell, with a modest production rate of 5,100 barrels per day. Nigeria has a maximum crude oil production capacity of 2.5 million barrels per day and ranks as Africa's largest producer of oil and the sixth largest oil producing country in the world and its reserves of crude oil currently stand at about 35.3 billion barrels. As part of Nigeria's resolve to become a major player in the international gas market, the Gas Master Plan was approved in 2008 with the intention of laying a solid framework for gas infrastructure development and expansion within the domestic market. The Master-Plan is a guide for the commercial exploitation and management of Nigeria’s gas sector. It aims at growing the Nigerian economy with gas by pursuing three key strategies:

i. Stimulate the multiplier effect of gas in the domestic economy

ii. Position Nigeria competitively in high value export markets

iii. Guarantee the long term energy security of Nigeria

. (Source: Nigerian National Petroleum Corporation)

Manufacturing Manufacturing activities have significant impact on the economy of a nation. In developed economies, for instance, they account for a substantial proportion of total economic activities. In Nigeria, the sub-sector is responsible for about 10% of total GDP annually. In terms of employment generation, manufacturing activities account for about 12 per cent of the labour force in the formal sector of the nation’s economy. During the fourth quarter of 2010, manufacturing activities increased by 2.9 per cent and 3.1 per cent from the preceding quarter and corresponding period in 2009. The development was attributed to the increase in business confidence as a result of positive policy measures taken by the government to revive the sector as well as improved power supply for manufacturing activities across the country. . (Source: National Bureau of Statistics)

Telecommunications Nigeria is Africa’s largest telecoms market with over 90.6 million active telephone subscribers comprising 89.6 mobile subscribers (GSM and CDMA) and 0.9 million fixed line subscriptions as at April 2011 (NCC). Teledensity for the mobile and fixed lines now stands at 64.70%, compared to 1.89% in 2002. The industry is currently dominated by mobile phone operators with a mobile penetration in excess of 55% although there is a high incidence of multiple SIM ownership and a large number of inactive prepaid users. One of the most important sources of growth over the next few years will be the expansion of mobile network infrastructures into rural areas. Nigeria’s active mobile industry is forecast to exceed 99 million subscribers at the end of 2011, reflecting a full year growth of about 14%. By the end of 2015, this is expected to exceed 141 million mobile customers, equivalent to a penetration rate of 79%.

.(Source: Nigeria Communication Commission)

28

OVERVIEW OF THE NIGERIAN ECONOMY (CONT’D)

Financial Services The Financial Services sector comprises banks, insurance firms, capital markets, investment management/stock broking firms and investment funds. In 2004, the CBN announced plans to reform the banking system which led to the increase of minimum capital base of commercial banks from N2 billion to N25 billion. This led to a reduction of banks in the country from 84 to 24. However, further reforms by the CBN in 2009 to clean up the books of banks and recover non performing and bad loans from customers, coupled with the global financial meltdown resulted to eight banks being distressed and needing immediate cash injections to stabilise their operations. The Federal Government also created the Asset Management Corporation of Nigeria (AMCON) to buy back the bad loans of these rescued banks in order to give the banks an opportunity to recapitalize.

AMCON commenced full operations during the 2nd quarter of 2011 with the issuance of zero coupon bonds to Nigerian banks in exchange for the non-performing loans being carried in their books. This move is expected to improve the liquidity position of the banks and enable them lend to the real sector of the economy. Some of the intervention banks have signed Memoranda of Understanding (MOUs) with other banks for business combination, while some foreign firms expressed interests in becoming core investors in some others. Currently, some of these rescued banks have entered into negotiation and due diligence stages for possible mergers.

The insurance sector has also been undergoing reforms with an associated growth in premiums of 25% in 2008, of 33% in 2009 and about 26% in 2010. With the efforts of the National Insurance Commission to ensure compliance with the Insurance Act 2003, Pension Reform Act 2004 and its implementation of “Market Development and Restructuring Initiatives” (MDRI), premiums are expected to hit N6 trillion in 2020

Foreign Direct Investment (FDI) Nigeria could become a prime destination for foreign investment across various sectors of the economy in the coming years if promised reforms to the trade and investment framework materialise. As Africa’s largest country in terms of population, Nigeria already attracts substantial investment inflows to its oil and gas industry. However, overall foreign direct investment (FDI) remains modest for a country of this size.

FDI has been hovering around the US$2bn per annum level in recent years. The Nigerian Investment Promotion Commission (NIPC) has said this level needs to be boosted to at least US$3bn per year if the economy is to expand as quickly as the government desires. China is fast becoming an important player in the Nigerian economy, accounting for more than 25% of total investment, according to the NIPC. Foreign firms are allowed full ownership of companies operating in Nigeria, with the exception of the petroleum sector.

Incentive schemes to encourage FDI such as ‘Pioneer’ status help companies (generally labour-intensive industries viewed as essential to economic development) receive five-year complete tax holidays (more if they are located in poor regions), 30% tax concessions also exist for industries using 60-80% local raw materials, while 15% concessions exist for using labour-intensive production techniques. Also, businesses can obtain 120% tax deductions for research and development conducted in Nigeria, with an additional 20% deduction available for using local materials (BMI).

Credit Rating Fitch’s sovereign credit rating for Nigeria remains at BB- as a result of savings in oil windfall, accumulation of foreign assets and a strong balance sheet. The local currency has also maintained a BB-, reflecting the development and continued existence of a domestic debt market. However, Fitch lowered Nigeria’s sovereign credit outlook from stable to negative in October 2010, citing the depletion of its oil windfall savings and heightened political uncertainty ahead of elections at that time. According to Fitch, Nigeria risks a credit ratings downgrade to B+ from BB- if the government fails to implement urgent and needed reforms to improve its outlook.

29

OVERVIEW OF THE NIGERIAN ECONOMY (CONT’D)

Standard and Poor (S&P) have lowered Nigeria’s outlook from stable to negative, as a result of falling oil revenues and the costly bank bailout as a basis for the revision. It however affirmed Nigeria’s B+ foreign currency and BB local currency long term sovereign credit ratings. Inflation Available data from the Central Bank of Nigeria (CBN) showed that the all-items composite of the Consumer Price Index (CPI) increased to 12.40 per cent in the month of May 2011 from 11.30 per cent in the month of April 2011. However, the inflation rate on a twelve-month moving average basis (Year on Year) decreased to 12.60 per cent in May 2011 from 12.70 per cent in the preceding month.

.(Source: Central Bank of Nigeria)

30

9. OVERVIEW OF EKITI STATE

Ekiti State (“Ekiti” or “the State”) is located in the Western part of Nigeria with its State Capital located in Ado-Ekiti. The State was created on October 1, 1996 under the Military Administration of Late General Sani Abacha out of the then Ondo State. The State is bordered by Kwara and Kogi State to the North, Osun State to the West and Ondo State to the East and to the South.

The State has sixteen (16) Local Government Councils and a population of 2.3 million based on the 2006 census.

Ekiti State is an upland zone rising over 250 meters above sea level and is located between longitudes 40 51 and 50 451 East of the Greenwich Meridian and latitudes 70 151 and 80 51 north of the Equator.

The State prides itself on the wisdom to impart knowledge to the teeming youth through the establishment of educational institutions in the State. It currently has 541 Primary Schools, 141 Secondary Schools, 4 State Colleges and a State University. In addition, a network of Primary Health Care Institutions such as Basic Health Centres, Comprehensive Health Centres, Maternity Centres/Dispensary Centres are located in most parts of the State for the purpose of rendering Health Care Services to the population. Agriculture Agriculture is the main employer of labour and income source for more than 75% of the population of Ekiti State. The main cash crops of the State are cocoa, coffee, kola nut, cashew and oil palm. The State can also boast of various species of timber that provide raw materials for wood-based industries. Due to the climatic condition, the State enjoys luxuriant vegetation, making it one of the food baskets of the Nation. The State can boast of an array of food crops such as: yam, cocoyam, cassava, maize, plantain, banana, rice, beans, pepper, tomatoes and varieties of vegetables. Mineral Resources Ekiti State is richly endowed with mineral resources, most of them still untapped. Some of these are cassiterrite, columbite and tantalite which are found in Ijero, Ceramic (Ball) clays and kaolin tic clays can also be found in Isan-Ekiti in Oye Local Government Area. Feldspar, which is used in the production of glass, is located in Ijero (Oke Ewu) and Aramoko. Bauxite clay is available at Orin-Ekiti (Ido/Osi Local Government Area), while foundry quartzities can be found around Ijero and Efon-Alaaye. Dimension stones like granites, churnockites and banded gneisses occur extensively in Ikere-Ekiti, Ado-Ekiti, Oye-Ekiti, Ewu and Otun. Mica/Moscovite is found in most parts of the State, while Tantalum is available in Ijero. Tourism Ekiti State has a wide variety of customs, traditions and festivals that support its tourism potential making the State a viable tourist destination. Through the State Ministry of Culture, Tourism and Civic Orientation the State has taken steps to ensure that this sector becomes an avenue for revenue. The State currently has a number of tourist attractions. Some tourist attractions include the Ikogosi Warm Spring, the Olasunta Orole Hills, the Arinta Waterfalls, the Ero Water Dam, the Egbe Dam and the Fajuyi Square. Every year the State is gored with a number of festivals and ceremonies. In total the State can boast of 48 Festivals that exhibit the traditional heritage of the State. Some of which include: the Idiroko, Ogun, Oritade, Aeregbe, Ode, Epa, Eegun, Orara, Itomo and Osun.

31

OVERWIEW OF EKITI STATE (CONT’D)

Education Education is the most visible industry in Ekiti State. On assumption of office in 2010, the Governor declared free education in all public primary and secondary schools and promised to review school fees in state-owned tertiary institutions. There are 541 Public Primary Schools and 74 registered Private Primary Schools. The State also has 141 Public Secondary Schools and 18 registered Private Secondary Schools while there are four (4) Technical Secondary Schools in the State. There are 3 Tertiary institutions in the state, namely College of Education, Ikere-Ekiti, Federal Polytechnic, Ado-Ekiti, and a State University, University of Ado-Ekiti (UNAD)

The Structure of the Government

Executive The State is overseen by the Governor who is the chief executive vested with executive powers which are subject to the provisions of the Constitution and of any law made by the House of Assembly and can be exercised directly or through the Deputy Governor and Commissioners or Advisers. It is the duty of the Governor to appoint Commissioners and Advisers and to assign responsibilities to them, including the administration of department of Government. Legislature The legislative powers of the State are vested in the House of Assembly which comprises of 26 members. According to the Constitution, the State House of Assembly is required to consist of not less than twenty-four and not more than forty members who would have tenure of four years. The Head of the House of Assembly is called the Speaker and is assisted by the Deputy Speaker both of whom are elected by member of the House of Assembly.

Judiciary In accordance with the Constitution, judicial authority of the State is vested mainly in the following courts: the State High Court, Magistrate Court and Customary Court of Appeal and such other courts as may be authorized by law to exercise jurisdiction at first instance or appeal on matters with respect to which a House of Assembly may make laws. Presently, the state is divided into 8 judicial divisions. There are 4 High Courts, 15 Magistrate Courts and 31 Customary Courts in the State.

Local Governments The State currently has 16 local government councils. Each Local Government Area is administered under a local government council. The functions of a Local Government include the consideration and making of recommendations to the State on economic development, administrative and urban planning matters. Specific matters includes the collection of rates, radio and television licenses, establishment and maintenance of cemeteries and homes for destitute or infirm, naming of roads and streets, numbering of houses and such other function as may be conferred on a local government council from time to time by the State House of Assembly.

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10. REPRESENTATIVES OF THE EKITI STATE EXECUTIVE COUNCIL

The Issuer: Ekiti State Government Government House Ado-Ekiti Ekiti State

Representatives of the State Executive Council:

His Excellency Dr. Kayode Fayemi Executive Governor and Chairman, State Executive Council His Excellency Mrs. Olufunmilayo Adunni Olayinka Deputy Governor Alhaji (Dr) Ganiyu Owolabi Secretary to the State Government Dapo Kolawole Honourable Commissioner, Ministry of Finance and Economic Development Mr. Oyebanji Abiodun Honourable Commissioner, Ministry of Integration and Inter-Governmental Affairs Barrister Dayo Akinlaja Honourable Commissioner for Justice & Attorney General, Ministry of Justice Dr. (Mrs) Eniola Ajayi Honourable Commissioner, Ministry of Education, Science and Technology Otunba Remi Adebayo Bodunrin Honourable Commissioner, Ministry of Commerce, Industries, Cooperative and Tourism Chief Folorunso Bamidele Olabode Honourable Commissioner, Ministry for Youths, Sports and Social Development Dr. Adio Folayan Honourable Commissioner, Ministry of Agriculture &Rural Development Fola Richie-Adewusi Honourable Commissioner, Ministry for Women Affairs, Social Development and Gender Enpowerment Adesola Adebayo Honourable Commissioner, Ministry for Works & Infrastructures

Mr. Kayode Olaosebikan Honourable Commissioner, Ministry of Physical, Urban and Regional Planning Alh. Jinadu Ayodele Honourable Commissioner, Ministry for Culture, Art and Tourism Apalara Wole Adewumi Honourable Commissioner, Ministry of Housing & Environment Dr. Wole Olugboji Honourable Commissioner, Ministry of Health Hon. Funminiyi Afuye Honourable Commissioner of Information Communication, Civic Orientation and Strategy Omotosho Paul Ayodele Honourable Commissioner, Ministry of Special Duties Mrs. Olubunmi Adelugba Honourable Commissioner, Ministry Of Employment, Labour and Human Capital Development Chief Emmaual Dayo Fadipe Honourable Commissioner, Ministry of Local Government and Chieftaincy Affairs

Attorney General to the State Government:

Barrister Dayo Akinlaja Ministry of Justice

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REPRESENTATIVES OF THE EKITI STATE EXECUTIVE COUNCIL (CONT’D)

Auditor General of the State: Mr. Adedayo Gabrial Ajayi Ministry of Finance

Accountant General of the State:

Mr. A.B. Owolabi Ministry of Finance

34

11. PROFILE OF MEMBER OF EKITI STATE EXECUTIVE COUNCIL

Dr. Kayode Fayemi is the Executive Governor of Ekiti State. He holds a Bachelor’s Degree in History and a Masters Degree in Politics & International Relations from the Universities of Lagos (1985) and Ife (1987) respectively. He was awarded a Doctorate degree in War Studies from the University of London, England, where he specialized in civil-military relations (1993). He started his career with the Nigerian Police Training College in Sokoto (1985–1986) as a lecturer and afterwards worked for Development & Management Consultants as a Research Officer (1987–1989). In 1991, he joined the African Research and Information Bureau, UK as a Research Fellow and moved on to become the Strategy Development Adviser of the Deptford City College London, UK in 1993. He later became the Secretary General of Media Empowerment for Africa (The Radio Foundation) from 1995 to 1997. He set up the Centre for Democracy & Development, a research and training institution dedicated to the study and promotion of democratic development, peace-building and human security in Africa in 1997 and was the pioneer Director from 1997 to 2006. Dr. Fayemi serves on numerous Boards including the Governing Board of the Open Society Justice Institute, Baobab for Women’s Human Rights, African Security Sector Network, Advisory Board of the Global Facilitation Network on Security Sector Reform and the Management Culture Board of the ECOWAS Secretariat. He has written extensively on governance and democratisation, civil-military relations and security sector issues in Africa.

Mrs. Olufunmilayo Adunni Olayinka is the Deputy Governor of Ekiti State. She holds a Bachelors Degree in Business Administration [Marketing] and a Masters Degree in Public Administration from Central State University, Edmond, Oklahoma, United States in 1981 and 1983 respectively. She started her career in the Banking Sector with First Bank of Nigeria Plc in 1986, she later worked as Relationship Manager for Corporate Accounts in Access Bank Plc, and United Bank for Africa Plc. In August 2002, she took up a new challenge in Corporate Communications and promptly proceeded to Head the Corporate Affairs Division of United Bank for Africa Plc. She later became Head, Brand Management & Corporate Affairs, where she lead the team responsible for delivering a compelling brand proposition and re-branding of UBA Plc. She was the 2nd Vice President of the Association of Corporate Managers of Banks between 2002 and 2004 and played notable strategic roles during the Merger process of the United Bank for Africa and Standard Trust Bank where she co-chaired the Branding Sub-Committee. She also served as a key member of the Media Relations Sub-Committee. Until her recent election as the Deputy Governor of Ekiti State, she was Head of Corporate Services, Ecobank Transatlantic Incorporated where she was responsible for communicating the bank’s activities to the public. She also oversaw the General Internal Services Unit of the Bank with responsibility for overall co-ordination of administrative services.

Alhaji (Dr). Ganiyu Abiodun Owolabi is the Secretary to the State Government. He holds a Doctorate Degree in Veterinary Medicine from the University of Ibadan (1979) and a Master of Science in Agricultural Economics from Wye College United Kingdom (1985). He commenced his working career at Mokola Veterinary Clinic Ibadan in 1974. From 1979 to 1982 he was employed as a Veterinary Officer at the Federal Livestock Department (Ilorin) and the Ondo State Public Service. He was then Project Officer to the Benin Owena River Basin and Rural development between 1981-1984. He thereafter held several positions in the Authority between 1985 to 1988. From 1988 to 1994, he was the Acting Zonal Manager for the South-West States in the Nigeria Agriculture Insurance Corporation. Between 1994 and 1996, he was appointed a fulltime Board Member (Executive Director) under the Ondo State Primary Education Board. Upon the creation of Ekiti State, he was appointed the Executive Chairman of the Ekiti State Primary Education Board and served in that capacity from 1996 to 1999. Between 1999 and 2003 he was appointed the Commissioner for Agriculture and Rural Development. Prior to his appointment as the Secretary to the State Government in 2010, he was the Chairman and Chief Executive of Planet Health International.

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PROFILE OF MEMBER OF EKITI STATE EXECUTIVE COUNCIL (CONT’D)

Mr. Dapo Kolawole is the Honourable Commissioner, Ministry of Finance and Economic Development. He holds a bachelors of science degree in Accounting (Upper Class) from the University of Lagos in 1986. He qualified as Chattered Accountant in 1988 and is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), he is also an Associate Member of the Chartered Institute of Taxation of Nigeria (CITN). His working experience commenced as an Audit Trainee in Deloitte Haskins and Sells International during his National Youth Service (1986-1987). He joined the services of Nigerian International Bank Limited where he worked as a teller officer in 1987. In that same year, he was employed as an Audit Trainee- Manager in Cooper and Lybrand International (Price Water House Coppers), where he diligently served till 1992. He was an Associate Consultant in Trade Point Limited (1993-1999), and the Group Head, Internal Audit and Controls with Standard Trust Bank Plc (2000-2003). He served as a Special Assistant in the Ministry of Finance and Ministry of Budget & Economic Planning of Lagos State (2003-2007) from where he joined UBA Plc as the Group Head, Mergers & Acquisitions, Capital Allocation and Funding (2007 to 2009). Prior to his appointment as the Commissioner, Ministry of Finance, Budget and Economic Development in 2011, he was Managing Partner and Chief Executive Officer of SWH Consulting services. Mr. Oyebanji Abiodun is the Honourable Commissioner, Ministry for Integration and Inter-Governmental Affairs. He holds a Bachelors Degree in Political Science from the Ondo State University in 1989 and a Masters Degree in Political Science from the University of Ibadan in 1992. He commenced his working career as a lecturer in the Department of Political Science in the University of Ado Ekiti from 1993-1997. His versatility earned him a rewarding career in the Banking Sector where he held positions as a Manager in the Treasury and Financial Services and then Head of Strategic Planning Unit of Omega Bank Plc (now Spring Bank) from 1998 to 2004. In between his Banking Career he served as the Special Assistant (Parliamentary Affairs) and Chief of Staff to the First Executive Governor of Ekiti State between 1999-2003. Prior to his appointment as Commissioner, he was the Managing Director of the Divine Group and Chairman, Governing Board, Citizenship and Leadership Training Center under the Federal Ministry of Youth Development.

Barrister Dayo Akinlaja is the Attorney General and Honourable Commissioner, Ministry of Justice. He obtained an LL.B (HONS) in 1990 from the University of Benin, B.L from the Nigerian Law School in 1991, and an LL.M from the Obafemi Awolowo University in 2001. He started his career with Olanipekun & Co. in 1991 where he had his National Youth Service and was employed as a consultant in the same firm in 1992. He has held various positions worthy of note in his field which include the following:member NBA Human Rights Committee from 2004 till 2006, member, Justice sector reform/judiciary committee from 2006 till 2008 (NBA national); Chairman, Ethics committee from 2007 till 2009, Chairman, Biennial Law Week Programme (2008), member, Committee for review of 2005 Kwara State High Court Civil Procedure Rules from 2008 till date. He is an associate of the Nigerian Bar Association, International Bar Association and Advocates Africa. Dr. Oluwole Adedokun Olugboji is the Honourable Commissioner, Ministry of Health. He attended the College of Medicine, University of Ibadan, Nigeria in 1983 where he obtained a Bachelor of Medicine and Bachelor of Surgery and subsequently became a fellow of the Association of General Practitioners of Nigeria in 2005. Dr. Oyebanji started his career as a medical officer at Adel Specialist Hospital, Ibadan, Oyo State in 1985 after completing his youth service with the Medical Centre, National Sports Commission, Liberty stadium complex from 1984-185. He left Adel Specialist Hospital in 1986 and became the Managing Director of Samabo (Nig) Enterprises. He is also the proprietor and Medical Director of Aggrey Hospital a position he held until his appointment as the Honourable Commissioner.

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PROFILE OF MEMBER OF EKITI STATE EXECUTIVE COUNCIL (CONT’D)

Dr. (Mrs.) Eniola Olaitan Ajayi is the Honourable Commissioner, Ministry of Education, Science & Technology. She graduated from the University of Benin with a Bachelor of Science in Optometry in 1986 and further attained a Masters Degree in Philosophy in Ocular Pathology from the University of London in 1994. She obtained a Doctorate Degree in Optometry from the University of Benin in 2002. She started her career at the Eye Clinic of the Nigeria Air Force in 1996 after her National Youth Service with the same institution in 1995. She left the Eye Clinic in 1997 and started her private practice Biomiscropy, Ophthalmology, and Keratometry. She has conducted research in general makeup of the Retina, distribution of Intermediate Filament proteins and Implications of diseases from 1992 to 1994. Her research was sponsored by the European Commission Scholarship and the Ministry of Defence, Nigeria. She is a recipient of various awards in recognition of her exceptional achievements such as the Eye-Care personality of the year 2010, Optometrist of the year/Nigerian Optometric Association chairman of the year (2009) and best graduating student of the special doctor of Optometry class of 2002. She was also the recipient of the A.G Bygott post graduate studentship award of 1993 a distinguished Alumnus award from the University of Benin. Otunba Adedayo Remi Bodunrin is the Honourable Commissioner, Ministry for Commerce and Industries. He holds a Bachelors Degree in Economics from the University of Ibadan in 1993. He joined the United States Army in 1994 where he served as a specialist till 1998. After a rewarding service in U.S Army, he became the General Manager of Walgreens Company (Houston TX) from 1998 to 2000. From 2000 to 2002 he was the Executive Vice President of B.T Healthcare Services, (Baltimore Operation). He is currently the President and Chief Executive Officer (CEO) of Mofrankal Health Service Incorporated in 2002 till his appointment as Commissioner in 2011.

Mr. Folorunso Bamidele Olabode is the Honourable Commissioner, Ministry for Youths, Sports and Social Development. He holds a Bachelor of Arts Degree from the University of Ibadan (1991) and a Masters Degree in International Relations from Obafemi Awolowo University (2006). His working career commenced in 1995 as a Manager in Mofad Ventures Nigeria Limited. He left Mofad Ventures in 1995 and joined the Nigerian Informal Economy Development Initiatives as a Programme Officer. He served as the State facilitator for the Center for Constitutional Governance from 2001 to 2003. His desire for public service led him to the House of Representative (National Assembly) where he served as a Legislative Assistant in the House of Representatives from 2004-2007. He served as the Deputy National Secretary, Federation of Informal Workers Organization a position he held till 2011 before his appointment as Commissioner. Dr. Joshua Adio Folayan is the Honourable Commissioner, Ministry of Agriculture & Rural Development. He holds a Bachelors Degree in Agricultural Economics from the University of Ife Osun State in 1982. He also obtained a Masters Degrees in Agricultural Economics and Business Administration from the University of Ife and the Federal University of Technology Akure in 1987 and 2000 respectively. In 2005, he bagged a PH.D in Agricultural Economics from the Federal University of Technology Akure. He is a member of the Nigerian Institute of Management (NIM). He commenced his working career as a Teacher in C.A.C Grammar School, Efon Alaaye and Sanni Luba Institutions Ijebu-Ode between 1983 and 1988. At different times in his working career, he had worked as a Marketing Officer in General Lines Limited (1988-1989), Agricultural Officer, Assistant Manager and Operations Manager in SGS Inspection Services Nigeria Limited (1989-1998). He later became Director of Operations in Commodity Support Service Limited (1998-2006) and a Director of Research and Marketing in Foldio Ventures Limited (2006-2009). The urge for knowledge sharing brought him back to the classroom as he resumed academic service as a lecturer in the Department of Agricultural Economic and Extension Services in the University of Ado-Ekiti. He later became a Senior Lecturer in 2009.

Mrs. Fola Richie-Adewusi is the Honourable Commissioner, Ministry of Information, Communication and Strategy. She holds a Bachelor of Arts Degree in English from Obafemi Awolowo University Ife (1985) and a Masters in Family Planning Program Administration from

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PROFILE OF MEMBER OF EKITI STATE EXECUTIVE COUNCIL (CONT’D)

the University of Exeter in the United Kingdom (1991). Mrs. Adewusi became actively involved in the Health Care Industry starting as a Program Officer in the Planned Parenthood Federation of Nigeria (PPFN) from 1987-1993. At different times she was a Project Director under the Youth Aid Project Incorporation in Lagos State (1993-2000) and the Youth Health & Women Development Projects Incorporation Ado Ekiti, Ekiti State (2000-2001). Her meritorious service earned her an opportunity to serve as the Senior Behaviour Change Communications Officer (FHI) (2002-2004), Community Mobilization Program Coordinator for the Family Health International Lagos, Nigeria (FHI) and Community Participation for Action in Social Sector Projects under the USAID (2004-2005). Mrs. Richie-Adewusi held several positions such as Youth Participation Consultant to UNFP (2005-2006), Senior Training and Community Network Advisor (ICAP) 2006-2007 and Strategic Behaviour Communication & Community Mobilization Advisor (ICAP) 2007-2008. She currently holds the position of the Chief of Party, Rapid and Effective Action Combating HIV/AIDS under the Pact Inc. of Nigeria a None Government Organisation Initiative.

Mr. Adesola Adebunmi Adebayo is the Honourable Commissioner, Ministry for Works and Infrastructure. He obtained a Bachelors of Science Degree in Management from Chapman College, Orange, California, USA in 1984. He further obtained an MBA from the United States International University, San-Diego, California, USA in 1985. Prior to his appointment as Commissioner, he was the Chief Executive Officer of Kaypee Furniture & Joinery Limited from 1997 to 2011. He is currently on the Board of several companies which includes, Wood Masters Nigeria Limited, Magnificent Interiors Limited, De- Haastrup Communications and Sovereign Insurance Plc. Mr. Adebayo had also served on the board of Dunlop Nigeria Plc, Confidence Insurance Plc and Home Foundation Savings & Loans Limited. He is an Alumni of Lagos Business School and a member of Furniture and Allied Products Manufacturers Association of Nigeria. Chief (Mrs.) Olufunke Victoria Owoseni is the Honourable Commissioner, Ministry for Women Affairs and Gender Empowerment. She holds a B.A in History from the University of Ilorin in 1983, a Post Graduate Diploma in Education from the University of Lagos in 1989, a Diploma in Basic Computer and Programming from the Citadel Computer Centre Lagos in 1990. She also holds two (2) Masters of Arts Degrees in Secondary School Social Studies in 2000 and Educational Leadership & Technology in 2001 both from Adelphi University, New York. Her teaching career commenced in 1984 as the Dean of the 8th Grade in Iponri Grammer School. Between 1991 and 1995 she was the Head of Department, Social Studies in Ogba Grammar School. She also taught Social Studies and English Language in the Intermediate School 55 in New York City in 1999. In 2007, she was appointed as a Director in the ACWA a position she holds till date. Mr. Kayode Francis Olaosebikan is the Honourable Commissioner, Ministry for Physical, Urban and Regional Planning. He graduated with a National Diploma in Land Surveying in 1988 from Ondo State Polytechnic, Owo and an Higher National Diploma in Surveying and Geo Informatics from the Federal Polytechnic, Ado-Ekiti in 2001. In 2010, he obtained a Post Graduate Diploma (PGD) in Surveying and Geometrics from the Federal School of Surveying, Oyo, Oyo State. He worked as an assistant Surveyor in Ade Hassan & Associates from 1988-1990. In 1991, he was appointed as the Supervisory Councillor for works in Moba Local Government Area, Otun-Ekiti. He was Elected Councillor for Otun Ward in Moba Local Government where he occupied the post of Majority Leader from 1991-1993. Between 1993 and 1998, he occupied the position of Project Manager at J. A Adewole & Associates. He was the Managing Director/CEO of Ako & Associates from 1988 to 2004 before joining J. A Adewole & Associates in 2004 as a General Manager, position he held prior to his appointed as Commissioner in 2011. Alhaji Jinadu Ayodele Shedu is the Honourable Commissioner, Ministry for Culture, Tourism and Civic Orientation. He holds a Bachelors Degree in Sociology from the University of Benin in 1985 and a Diploma in Computer Science. He commenced his working career as a Senior Social Mobilization Officer in the Federal Ministry of Information, National Orientation Agency, Akure,

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PROFILE OF MEMBER OF EKITI STATE EXECUTIVE COUNCIL (CONT’D)

Ondo State from 1986-1996. He veered off his public service career into politics when he was elected Deputy Chairman, Ado-Ekiti Local Government in 1997. He went on to become a founding member and State Organizing Secretary of the Alliance for Democracy Party (1999-2006). He later moved his wealth of Experience to Action Congress, where he acted as Steering and Congress Committee Member of the Party in 2006. Mr. Apalara Wole-Adewunmi is the Honourable Commissioner, Ministry of Housing and Environment. He obtained a Bachelor of Arts Degree in History/Sociology from the University of Ife now Obafemi Awolowo University, Ile Ife (1984). He has a Master’s Degree in Personnel Psychology from the University of Ado-Ekiti (1999). He also has a Post Graduate Diploma in Journalism from the Nigerian Institute of Journalism, Abuja (2009). He worked as a primary school teacher from 1975-1987 but had a stint as an assistant monitoring officer in the Political Bureau from April- July 1986. Between 1987 and 1990, he was the Principal Local Government Affairs Officer in the Ministry of Special Duties and was later appointed as Senior Cabinet Officer in the office of the Governor where he worked from 1990-1993. Prior to his appointment as Commissioner, Mr. Wole-Adewunmi held several executive positions in Ondo and Ekiti State Christian Pilgims Welfare Board, Ministry of Finance and the Universal Basic Education Board.

Mr. Adedayo Gabriel Ajayi is the Auditor–General of the State. He holds a Bachelors Degree in Economics from the University of Ibadan (1978), a Masters Degree in Business Administration from Obafemi Awolowo University (1991). He is also a Certified National Accountant of the Association of National Accountants of Nigeria (ANAN). He commenced his working career as an Auditor (II) in the Ministry of Agriculture and Natural Resources in Akure, Ondo State from March 1980 to August 1981. At various times during his Civil Service career from September 1981 to March 2004, he held various positions such as Chief Auditor, Assistant Director, Director and Acting Auditor General. On April 1, 2004 he was appointed the Auditor-General of Ekiti State, a position he holds till date. Mr. A.B Owolabi is the Accountant General of the State. He holds a National Diploma and Higher Diploma in Accountancy from the Ondo State Polytechnic Owo (1982) and Federal Polytechnic Ado Ekiti State. He also holds a Post Graduate Diploma in Computer Science from the Federal University of Technology Akure, Ondo State (1995) and Masters in Business Administration from the University of Ado-Ekiti, Ekiti State (2000). He is an Associate of the Nigerian Institute of Managemen(NIM) (1994), Chartered Tax Administrator (1996) from Chartered Institute of Taxation of Nigeria (CITN) and a Fellow Chartered Accountant (FCA) from the Institute of Chartered Accountants of Nigeria (2008). He was HEO/SEO Accounts in Owo Local Government, Ondo State (1989-1993); Principal Accountant Local Government Pensions Board, Akure (1994-1996); Assistant Chief Accountant Ikere Local Government, Ikere Ekiti (1996-1997); Assistant Chief Accountant Ekiti East Local Government, Omuo Ekiti (1997-1998); Treasurer Grade II Ekiti South Local Government, Ilawe-Ekiti (1998-1999), Emure Local Government, Emure-Ekiti (1999-2000), Gbonyin Local Government, Ode-Ekiti (2001-2002); Treasurer Grade I Ikole Local Government, Ikole-Ekiti (2003-2005); Director Finance Grade Level 16 Local Government Service Commission, Ado-Ekiti (2006-2008), Ido/Osi Local Government, Ido-Ekiti (2008-2010), Oye Local Government, Oye-Ekiti (2010-2011). Prior to his appointment as the Accountant General of the State he was a Grade Level 17 Director Finance in the Local Government Pension Board, Ado Ekiti. Mrs. Adelugba Olubunmi is the Honourable Commissioner, Ministry of Employment, Labour and Human Capital Development. She holds an OND in accounting from Polytechnic, Ibadan (1986) and a HND in Accounting from Federal Polytechnic, Ado-Ekiti (1988).She has a Masters degree in Business Administration from MBA Finance Option(2009).She is a Member and a fellow of the Institute Of Chartered Accountants of Nigeria and an Associate member of the Chartered Institute of Taxation. Mrs. Adelugba has worked with Femi Bolorunduro & Co, Prudential Group as Chief Accountant, Olusola Adekanola & Co as the Audit Manager/Principal Consultant, ActionAid Cameroon as the Head of Finance and is presently with ActionAid Nigeria as the Management Accountant.

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PROFILE OF MEMBER OF EKITI STATE EXECUTIVE COUNCIL (CONT’D)

Barr. Afuye Funminiyi Ebenezer is the Honourable Commissioner for Information and Civic Orientation, Ekiti State. He holds a Bachelors degree in Political Science from Obafemi Awolowo University, Ile-Ife (1980), a Masters degree in Political Science from the University of Lagos (1982), a Bachelors degree in Law from the same university (1994) and was admitted to the Nigerian Bar in 1995.He worked between 1974 and 1976 in the Federal Office of Statistics Ibadan, from where he moved to the Ministry of Finance and Economic Development, Ondo State in 1976. He was a board member of the Lagos State Schools’ Management from 1982-1983, he later moved to Bank of Credit and Commerce International BCCI, now African International Bank. Barr. Ebenezer worked in both Equitorial Trust and First African Trust Bank between 1990 and 1995. He works at Funminiyi Afuye & Co till date. Chief Dayo Emmanuel Fadipe is the Honourable Commissioner, Ministry of Local Government and Chieftaincy Affairs of Ekiti State. He obtained a Bachelors degree in English from the University of Ibadan(1975) and followed it up with a Post Graduate Diploma in Public Administration from the University of Ife(now Obafemi Awolowo University) 1984. During his years in the Public Service, Chief Fadipe worked in several ministries, Departments and Agencies in the old Ondo State and present Ekiti State. He joined the Civil Service (1976) as an Information Officer Grade II. He thereafter rose steadily from the post of an Assistant Secretary to that of the Director of Finance and administration GL. 16. He got to the peak of his career as Permanent Secretary (1996). After which he retired voluntarily from the service (2007). Omotosho Paul Ayodele is the Honourable Commissioner, Ministry of Special Duties holds a Bachelors degree in Law from the University of Ado Ekiti (2007) and was admitted to the Nigerian Bar in 2008. Before his appointment he was self employed.

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12. RISKS AND MITIGATING FACTORS

An investment in the Bonds may involve a high degree of risk. Accordingly, prospective investors should carefully consider the following risk factors together with all the other information included in this Prospectus before purchasing the Bonds. The risks outlined below are by no means, exhaustive, and are not the only risks facing the State. Additional risks and uncertainties that are currently considered immaterial may also materially and adversely affect the State in the future, should market conditions deteriorate. Any of the following risks could result in a material adverse effect on the State's financial condition, and ability to service its debt obligations, including the Bonds.

A. Political and regional instability in the Niger Delta region. Oil exportation is the major source of government revenue to Nigeria and Nigeria's major oil producing area is the Niger Delta region. Up until recently, there have been political disturbances and intermittent kidnappings for ransom in the Niger Delta region which substantially affected the country's oil production. The political calm currently prevailing in the South-south is a welcome development for the Nigerian economy. However, if it resurges, this could adversely affect oil production and economic activity in the main oil producing region of Nigeria. Mitigating Factor Although, the political and regional instability in the Niger Delta region has had a material adverse effect on investment and confidence in, and the performance of, the Nigerian economy, the Federal Government has embarked on a number of initiatives to address the instability and unrest in the region. Part of these initiatives include granting unconditional amnesty to former militants who surrendered their arms and ammunitions by 04 October 2009, and a proposal to offer a 10% equity stake to host communities in all joint venture businesses that the FGN is a party to.

B. Risks related to the economic stability of Nigeria. Although the previous presidential administration had implemented a number of wide-sweeping political and economic reforms aimed at diversifying Nigeria's economy and increasing macroeconomic stability whilst promoting a private sector market driven economy, the July 2009 sovereign ratings report from Fitch Inc. ("Fitch") characterised that they maintained its BB Sovereign rating on Nigeria which was attributed to the earlier reforms which had resulted in savings of oil windfall, accumulation of foreign assets and a very strong balance sheet. Meanwhile, the local currency rating was also maintained at BB- reflecting the development of domestic debt market since 2003, while Standard & Poor (S&P) lowered Nigeria's ratings outlook from stable to negative, eking falling oil revenues and the costly bank bailout, as a basis for the revision. Mitigating Factor Better policies and improved regulatory setting are being forested by the present administration to increase investment in such areas as telecommunications, where spectacular growth has significantly broadened economic activity.

C. Global prices of oil have significant impact on the Nigerian economy. The Nigerian economy is almost solely dependent on its oil sector which accounts for 95% of the country's total export earnings. Any changes in oil production or global price of oil will have wide reaching impact on all other sectors of the Nigerian economy. Mitigating Factor The present administration remains committed to economic reforms aimed at diversifying Nigeria's economy and increasing macroeconomic stability whilst promoting a private sector market-driven economy. In addition, the government's annual budget is pegged at a rate lower than the average trading price of crude oil. This reduces the country's exposure to the volatility in oil price.

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RISK AND MITIGATING FACTORS (CONT’D)

D. Emerging markets such as Nigeria are subject to greater risks than more developed markets, and financial turmoil in any emerging market could cause the price of the Bonds to decrease.

Generally, investment in emerging markets is only suitable for sophisticated investors who fully appreciate the significance of the risks involved in, and are familiar with, investing in emerging markets. Investors should also note that emerging markets such as Nigeria are subject to rapid change and that the information set forth in this Prospectus may become outdated relatively quickly. Moreover, financial turmoil in any emerging market country tends to adversely affect prices in equity markets of all emerging market countries as investors move their money to more stable, developed markets. As it has happened in the past, financial problems or an increase in the perceived risks associated with investing in emerging economies could dampen foreign investment in Nigeria and adversely affect the Nigerian economy. In addition, during such times, companies that operate in emerging markets can face severe liquidity constraints as foreign funding sources are withdrawn. Thus, even if the Nigerian economy remains relatively stable, financial turmoil in any emerging market country could adversely affect the Issuer's business, as well as result in a decrease in the price of the Bonds.

Mitigating Factors

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) is constantly monitoring ever-changing economic and financial environments in order achieve stable prices required for continuous assessment and evaluation of its monetary policy implementation framework.

E. Change of law.

The conditions of the Bonds are based on Nigerian law in effect as at the date of this Prospectus and at the date of any Prospectus. No assurance can be given as to the impact of any possible judicial decision or change to Nigerian law or administrative practice after the date of issue of the Bonds.

Mitigating Factors

The Ekiti State Government is committed to creating sustainable investment-friendly environment governed by stable polices. However, government policies affecting the bonds market, e.g. the tax exempt law on bonds of 2010, is an indication that government may continue to work towards the development of the debt/bonds market through the enactment of favourable laws. F. There is no established trading market for Bonds. There is no active trading market for the Bonds when issued and if such a market does develop, it may not be very liquid. Therefore, Investors may not be able to sell their Bonds easily or at prices that will provide them with a yield comparable to similar investments that have a developed secondary market. Mitigating Factors However, an Over The Counter (OTC) market exists for state government bonds, and the continuous development and deepening of the Bonds market will help ensure that the Bonds have liquidity. G. Interest rate risks An investment in the Bonds involves the risk that subsequent changes in market interest rates may adversely affect the value of the Bonds. Mitigating Factors Bonds held to maturity are not exposed to this risk as the State Government Bonds will be redeemed at par. On the contrary, Bonds sold between the period of issue and maturities are exposed to variations in the principal amount received as a result of fluctuations. To successfully

42

RISK AND MITIGATING FACTORS (CONT’D)

maintain a stable interest regime the Central Bank of Nigeria (CBN) has continued to put in place monetary and fiscal policies to balance the demand and supply of money in the economy, the inflation rate and other variable factors. H. Credit ratings may not reflect all risks. A Bond rating is not a recommendation to buy, sell or hold Bonds and may be subject to revision or withdrawal at any time by the assigning rating organisation. Any negative change in the Bond’s credit rating could materially and adversely affect the market price of the Bonds. The Bonds are rated by Global Credit Rating Company and Agusto & Co. Limited. These ratings may not reflect the potential impact of all risks related to structure, market and the additional factors discussed above, and other factors that may affect the value of the Bonds. A credit rating is not a recommendation to buy, sell or hold Bonds and may be revised or withdrawn by the rating agencies at anytime. I. Environmental Risk This is the risk associated with natural disasters, which may have an impact on the projects being executed which could interfere with the efficient running of the State or which could create liabilities for the State government with material impact on the State's finances. Mitigating Factors The State is in compliance with all environmental rules and regulations. These standards are constantly updated and enforced by the State to ensure a safe environment for its staff and citizens. The State ensures that relevant safety rules are adhered to in the execution of all its projects. Also environmental impact assessment will be undertaken for all projects to be funded with the proceeds of the Bonds issued under this Programme. For negative impacts identified, measures for managing such impact will be applied.

43

13. EXTRACT FROM THE ISSUER’S RATING REPORT

44

EXTRACT FROM THE ISSUER’S RATING REPORT (CONT’D)

45

EXTRACT FROM THE ISSUER’S RATING REPORT (CONT’D)

SHELF PROSPECTUS

DATED [**] 2011

46

14. HISTORICAL ACCOUNTS LETTER FROM THE REPORTING ACCOUNTANTS

The Honorable

Commissioner of Finance, Budget And

Economic Development Ministry of Finance and

Economic Development GRA, Ado-Ekiti

Ekiti State

The Directors

UBA Capital Limited 6th Floor, UBA House

57, Marina Lagos.

The Directors

Capital Bancorp Limited

3rd & 4th Floors 9/11, Macarthy Street

Onikan Lagos

The Directors

MorganCapital Securities Limited

The Pent Floor 3, Biaduo Street, Off Keffi

Street South-West

Ikoyi Lagos

And And And And

The Directors

Greenwich Trust Limited

Plot 1698A, Oyin Jolayemi Street

Victoria Island Lagos

The Directors

FBN Capital Limited 16, Keffi Street

South West Ikoyi Lagos

The Directors

Chapel Hill Advisory Partners Limited

45, Saka Tinubu Street Victoria Island

Lagos

The Directors

BGL Plc No 12A, Catholic Mission

Street Lagos Island

Lagos

And And

The Directors

Fidelity Bank Plc Fidelity Plaza

2, Kofo Abayomi Street Victoria Island

Lagos

The Directors

Skye Financial Services Limited

Plot 287, Ajose Adeogun Street

Victoria Island Lagos

Dear Sirs We have examined the Financial Statements of Ekiti State Government for the five years ended 31 December, 2010 prepared by the Accountant-General of Ekiti State. The Auditor-General of Ekiti State was the Auditor for this period and none of his audit reports on the financial statements for the period was qualified. The financial information set out in the Prospectus is based on the financial statements of the State Government after making such adjustments as considered appropriate. In our opinion, based on the information and explanations received, the financial statements on pages 17 to 20 prepared on the basis of the accounting policies stated on page 16 and the notes on pages 22 to 29, give for the purpose of the prospectus, a true and fair view of the state of affairs as at 31 December, 2006 to 2010 and of the Revenue and Expenditure Account of Ekiti State Government for the period then ended. Yours faithfully

BALOGUN BADEJO & CO (Chartered Accountants) REPORTING ACCOUNTANTS Lagos, Nigeria

47

HISTORICAL ACCOUNTS STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted by Ekiti State Government in the preparation of its financial statements are as follows:

1 Accounting convention

The financial statements are prepared on cash basis.

2 Depreciation

Depreciation of fixed assets is not recognized in the financial statements as fixed assets are expensed in the year of acquisition.

3 Foreign currencies

Transactions in foreign currencies are translated to Naira at the rates of exchange applicable at the dates of transactions.

4 Investments

Investments in shares are stated at cost.

5 Revenue

The revenue for the state consists of:

* Statutory Allocations

* Internally Generated Revenue

* Capital Receipts

* Grants

* Miscellaneous Revenue

6 Expenditure

The State's major expenditure comprises:

* Recurrent expenditure

* Capital expenditure

SHELF PROSPECTUS

DATED [**] 2011

48

HISTORICAL ACCOUNTS STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

AS AT 31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

CASH FLOWS FROM OPERATING ACTIVITIES

RECEIPTS

STATUTORY ALLOCATIONS 4 20,896,615 16,300,346 21,187,003 17,550,568 16,206,928

VALUE ADDED TAX 5 5,517,959

4,540,803 3,855,382 2,884,301 2,234,840

INTERNALLY GENERATED REVENUE 6 2,454,451

3,062,383 4,153,780 1,706,422 1,192,255

EXCESS CRUDE OIL PROCEEDS 7 6,366,680

7,648,513 7,059,176 3,799,534 4,251,798

DRAWN-DOWN ON FOREIGN LOANS/GRANTS 8

571,814 282,890 121,069 148,103 439,786

MDGs CONDITIONAL GRANTS

500,000 85,000 789,999 2,054,300 -

ECOLOGICAL FUND - - - 1,000,000 -

PARIS CLUB DEBT EXIT PROCEEDS - - - 8,172,030 -

REFUND ON FEDERAL ROADS 2,000,000 680,791 396,592 - -

REFUND OF LOAN ON GRATUITIES (JAAC ACCOUNT) - - 819,333 - -

BANK INTEREST GENERATED - - - 139,924

SUNDRY RECEIPTS/REFUNDS 9

503,222 174,583 - 222,316

REVENUE FROM SINKING FUND ACCOUNT - - 1,526,237

NATIONAL WATER REHABILITATION PROJECT - - - 354,216 -

38,810,741 32,775,309 38,382,334 37,669,474 26,214,084

PAYMENTS

PERSONNEL EMOLUMENTS 10 11,405,893

8,673,906 8,288,849 6,470,880 5,194,594

PENSIONS AND GRATUITIES 11 2,040,653

1,415,623 1,586,664 1,410,824

1,040,514

OVERHEADS COSTS 12 2,257,128

2,626,127 2,768,368 2,429,908 2,087,679

TRANSFER TO OTHER FUNDS 13 3,602,959

5,119,381 5,519,950 2,066,570 2,313,600

GRANTS TO PARASTATALS & TERTIARY INSTITUTIONS 14 7,329,114

5,439,752 5,598,165 2,579,065 1,786,242

CAPITAL RELEASES TO MINIST./DEPTS./AGENCIES 15 10,734,897 17,761,831 26,584,072 10,043,497 8,166,030

EXPENSES OF GENERAL NATURE 16 4,260,766 413,161 507,827 948,953 499,688

PUBLIC DEBTS CHARGES 17

272,947 181,251 - - -

41,904,357 41,631,032 50,853,895 25,949,697 21,088,347

49

HISTORICAL ACCOUNTS

AS AT 31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

NET CASH FLOWS FROM OPERATING ACTIVITIES

(3,093,616)

(8,855,723) (12,471,561) 11,719,777 5,125,737

CASH FLOWS FROM INVESTMENT ACTIVITIES

PURCHASE OF FINANCIAL MARKET INSTRUMENTS - -

(700,000) - -

INVESTMENT IN IKUN DAIRY

(33,411)

(177,697)

(300,000) - -

PROCEEDS FROM SHARES DIVESTMENT -

1,030,332 - 1,400,000.00 - INVESTMENTS AND ADVANCES - - -

NET CASH FLOWS FROM INVESTMENT ACTIVITIES

(33,411) 852,635 (1,000,000) 1,400,000 -

CASH FLOWS FROM FINANCING ACTIVITIES

REPAYMENT OF LOANS (FOREIGN)

(313,293)

(263,495)

(131,275)

(344,485)

(3,070,091)

PROCEEDS FROM LOANS AND OTHER BORROWINGS 3,600,000

5,000,000 - - 2,000,000

NET CASH FLOWS FROM FINANCING ACTIVITIES 3,286,707 4,736,505 (131,275)

(344,485)

(1,070,091)

NET INCREASE/(DECREASE) IN CASH AND CASH

159,680

(3,266,583) (13,602,836) 12,775,292 4,055,646

EQUIVALENTS

CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 2,449,349

5,715,932 19,318,768 6,543,476 2,487,830

CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 2,609,029 2,449,349 5,715,932 19,318,768 6,543,476

Note: The accounting policies on page 16 and the notes on pages 21 to 29 are to be read along with these financial statements.

50

HISTORICAL ACCOUNTS

STATEMENT OF ASSETS AND LIABILITIES

AS AT 31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

ASSETS

CASH AND BANK BALANCES 18 2,609,029 2,449,349 5,715,933 19,318,768 6,543,476

INVESTMENTS & OTHER ASSETS

INVESTMENTS IN STOCKS 19 1,236,087 1,214,103 1,194,775 847,412 1,923,912

HOUSING & VEHICLE LOANS DEBTORS 20 3,043,806 3,345,696 1,815,110 983,679 535,932

WEMA BANK SHARES DEBTORS 152,957 278,780 355,440 462,205 -

OPERATING LIABILITIES OVER ASSETS 21 5,025,898 5,007,224 1,701,188 1,172,852 9,620,078

9,458,748 9,845,803 5,066,513 3,466,148 12,079,922

TOTAL ASSETS 12,067,777 12,295,152 10,782,446 22,784,916 18,623,398

PUBLIC FUNDS AND LIABILITIES

CONSOLIDATED REVENUE FUND 861,440 489,905 1,592,366 3,007,616 2,001,311

CAPITAL DEVELOPMENT FUND 1,747,589 1,959,444 4,123,566 16,311,151 4,542,165

TOTAL PUBLIC FUNDS 2,609,029 2,449,349 5,715,932 19,318,767 6,543,476

LIABILITIES

FOREIGN LOANS 22 4,883,781 4,845,803 5,066,514 3,466,149 11,817,270

INTERNAL LOANS 4,574,967 5,000,000 - - 262,652

TOTAL LIABILITIES 9,458,748 9,845,803 5,066,514 3,466,149 12,079,922 NET FUNDS 12,067,777 12,295,152 10,782,446 22,784,916 18,623,398

Note: The accounting policies on page 16 and the notes on pages 21 to 29 are to be read along with these financial statements.

51

HISTORICAL ACCOUNTS STATEMENT OF CONSOLIDATED REVENUE FUND

FOR THE YEAR ENDED

31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

OPENING BALANCE 489,905 1,592,366 3,007,616 2,001,311 232,295

REVENUE (INCOME)

STATUTORY ALLOCATIONS 4 20,896,615 16,300,346 21,187,003 17,550,568 16,206,928

TAXES (DIRECT AND INDIRECT) 1,504,432 1,420,323 1,148,148 1,004,563 875,060

FINES AND FEES 13,812 11,283 203,797 126,286 1,139

LICENCES 34,245 31,038 250,827 40,067 48,780

EARNINGS AND SALES 198,207 - 418,640 177,952 5,328

RENTS ON GOVERNMENT PROPERTY 240 297 207,585 57,787 253

DIVIDENDS 4,796 28,532 7,922 4,226 5,594

REIMBURSEMENTS - - - 1,209 -

MISCELLANEOUS RECEIPTS - 204,339 - 294,331 146,108

BANK INTEREST 8,015 125,827 304,696 - 139,924

INCOME FROM SALES OF FERTILIZER - 315,283 127,551 - -

UNSERVICEABLE ASSETS 2,375 10,602 206 - -

LEGAL FEES 105,946 168,431 158,192 - -

EXAMINATION FEES 4,291 3,122 2,809 - -

PARASTATALS 434,528 549,236 762,166 - -

TREASURY CASH OFFICE BALANCES 143,564 156,993 - - 109,993

SUNDRY RECEIPTS 9 503,222 174,583 - - 222,316

PROCEEDS FROM WEMA BANK SHARE DIVESTMENT - - 106,963 - -

TOTAL REVENUE 23,854,288 19,500,235 24,886,505 19,256,989 17,761,423

TOTAL FUNDS AVAILABLE

24,344,193 21,092,601 27,894,121 21,258,300 17,993,718

EXPENDITURE

PERSONNEL COSTS 10 1,405,893 8,673,906 8,288,849 6,470,880 5,194,594

PENSION AND GRATUITY 11 2,040,653 1,415,623 1,586,664 1,410,824 1,040,514

ADMINISTRATIVE SERVICES 2,123,941 2,443,222 2,570,214 2,304,147 1,959,900

EDUCATION SERVICES 9,928 21,802 40,768 26,200 34,595

WORKS AND TRANSPORT SERVICES 22,967 34,504 56,320 18,184 21,207

HEALTH SERVICES 85,216 76,375 50,549 54,163 39,169

AGRICULTURAL SERVICES 15,075 50,223 50,517 27,213 32,807

52

HISTORIAL ACCOUNTS

STATEMENT OF CONSOLIDATED REVENUE FUND

FOR THE YEAR ENDED

31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

TRANSFER TO OTHER FUNDS 13 3,602,959 5,119,381 5,519,950 2,066,570 2,313,600

GRANTS TO PARASTATALS & TERTIARY INSTITUTIONS 14 7,329,114 5,439,752 5,598,165 2,579,065 1,786,242

EXPENSES OF GENERAL NATURE (CRF CHARGES) 16 4,260,766 413,162 507,827 948,953

499,688

PUBLIC DEBTS CHARGES 17 272,947 181,251 - -

REPAYMENTS OF LOANS (FOREIGN) 313,294 263,495 131,276 344,485 3,070,091

TOTAL EXPENDITURE 31,482,763 24,132,696 24,401,099 16,250,684 15,992,407

AVAILABLE FUNDS BEFORE TRANSFER

(7,138,560)

(3,040,095) 3,493,022 5,007,616 2,001,311

APPROPRIATIONS/TRANSFERS

CAPITAL DEVELOPMENT FUND 8,000,000 3,530,000

(1,900,656)

(2,000,000) -

CAPITAL RESERVE FUND (CLOSING BALANCE) 861,440 489,905 1,592,366 3,007,616 2,001,311

Note: The accounting policies on page 16 and the notes on pages 21 to 30 are to be read along with these financial statements.

53

HISTORICAL ACCOUNTS

STATEMENT OF CAPITAL DEVELOPMENT FUND

AS AT 31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

OPENING BALANCES 1,959,444 4,123,566 16,311,151 4,542,165 2,255,534

CAPITAL FUNDS

VALUE ADDED TAX 5 5,517,959 4,540,803 3,855,382 2,884,301 2,234,840

EXCESS CRUDE OIL PROCEEDS 7 6,366,680 7,648,513 7,059,176 3,799,534 4,251,798

DRAWN-DOWN ON FOREIGN LOANS/GRANTS 8 571,814 282,890 121,069 148,103 439,786

MDGs CONDITIONAL GRANTS 500,000 85,000 790,000 2,054,300 -

REFUND ON FEDERAL ROADS 2,000,000 680,791 396,592 - -

SALES OF BUILDING - - 340,000 - -

EXCHANGE DIFFERENTIAL - - 114,278 - -

REFUND OF LOANS ON GRATUITIES (JACC's ACCT) - - 819,333 - -

INTERNAL LOANS 3,600,000 5,000,000 - - -

ECOLOGICAL FUNDS - - - 1,000,000 -

PROCEEDS FROM SHARE DIVESTMENT - 1,030,332 - 1,400,000 -

TRANSFER FROM CRF - - 1,900,657 2,000,000 2,000,000

REVENUE FROM SINKING FUND ACCOUNT - - - - 1,526,237

SUNDRY RECEIPTS - 37,077 - - -

PARIS CLUB DEBIT EXIT PROCEEDS - - - 8,172,030 -

NATIONAL WATER DEVELOPMENT PROJECT - - - 354,216 -

TOTAL CAPITAL RECEIPTS 18,556,453 19,305,406 15,396,487 21,812,484 10,452,661

TOTAL CAPITAL FUNDS AVAILABLE 20,515,897 23,428,972 31,707,638 26,354,649 12,708,195

54

HISTORICAL ACCOUNTS

STATEMENT OF CAPITAL DEVELOPMENT FUND

AS AT 31 DECEMBER 2010 2009 2008 2007 2006

NOTES N'000 N'000 N'000 N'000 N'000

CAPITAL EXPENDITURES

ECONOMIC SECTOR

AGRIC & NATURAL RESOURCES 23 429,637 1,152,349 1,183,681 504,993 108,539

SME AND POVERTY REDUCTION 24 365,337 190,420 2,239,957 317,506 22,950

INFRASTRUCTURE 25 5,596,840 9,226,761 15,572,360 5,261,438 5,302,487

6,391,814 10,569,530 18,995,998 6,083,937 5,433,976

SOCIAL SERVICE SECTOR

EDUCATION 26 588,833 485,413 1,851,775 857,461 618,336

HEALTH 27 563,672 2,225,038 2,053,297 349,158 202,679

INFORMATION SERVICES & SOCIAL DEVELOPMENT 28 745,367 733,794 88,504 24,425 13,544

1,897,872 3,444,245 3,993,576 1,231,044 834,558

ENVIRONMENTAL DEVELOPMENT SECTOR

ENVIRONMENT, LANDS AND HOUSING 29 375,487 685,890 1,074,043 1,042,393 121,261

375,487 685,890 1,074,043 1,042,393 121,261

ADMINISTRATIVE SECTOR

GENERAL ADMINISTRATION 30 2,103,135 3,239,863 3,520,455 1,686,124 1,776,235

2,103,135 3,239,863 3,520,455 1,686,124 1,776,235

TOTAL EXPENDITURE

10,768,308 17,939,528 27,584,072 10,043,498 8,166,030

OPERATING BALANCE 9,747,589 5,489,444 4,123,566 16,311,151 4,542,165

APPROPRIATION/TRANSFERS

CONSOLIDATED REVENUE FUND (8,000,000) (3,530,000) - - -

CLOSING BALANCE 1,747,589 1,959,444 4,123,566 16,311,151 4,542,165

Note: The accounting policies on page 16 and the notes on pages 21 to 30 are to be read along with these financial statements.

SHELF PROSPECTUS

DATED [**] 2011

55

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS

1 STATUTORY ALLOCATIONS

These represent the Ekiti State Government's share of the revenue collected and distributed by the Federal Government. The basis of allocation varied over the years and the latest which is in accordance with the Finance and Miscellaneous Act is as follows:

%

Federal Government

52.68

State Governments

26.72

Local Government Areas

20.60

Federal Capital Territory

1.00

Ecological Fund

1.00

Statutory Stabilisation

0.50

Derivation for Development of

13.00

Mineral Producing Areas

======

2 INVESTMENTS JOINTLY HELD WITH ONDO STATE GOVERNMENT

There were no investments jointly held with Ondo State Government.

3 INVESTMENTS JOINTLY HELD WITH OTHER STATES/FEDERAL GOVERNMENT

The following investments were jointly held with South-west States:

i.

Ire Brick works Limited, Ire-Ekiti, Ekiti State.

ii. Odua Investment Limited.

56

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

4. STATUTORY ALLOCATIONS N'000 N'000 N'000 N'000 N'000

January 1,285,361

1,672,946

1,560,435

1,213,194

1,360,466

February 1,536,771

1,308,874

1,420,204

1,352,443

1,316,952

March 1,241,259

1,170,157

1,463,814

1,435,458

1,493,791

April 1,283,148

1,097,243

2,162,272

1,365,298

1,183,793

May 1,914,293

1,076,113

1,797,961

1,172,222

1,207,635

June 1,823,920

1,381,461

1,694,329

1,327,630

1,410,958

July 1,959,392

1,419,199

2,236,009

1,543,368

1,376,934

August 1,958,259

1,604,132

1,750,829

1,712,927

1,297,225

September 1,973,962

1,213,693

1,999,957

1,688,275

1,419,098

October 1,975,890

1,465,760

1,780,936

1,363,056

1,330,055

November 1,971,335

1,075,629

1,713,284

1,563,218

1,353,566

December 1,973,025

1,815,139

1,606,973

1,813,479

1,456,455

20,896,615 16,300,346 21,187,003 17,550,568 16,206,928

5. VALUE ADDED TAX

January 417,291

317,637 322,153

201,747

180,278

February 448,899

461,977 308,401

214,676

104,545

March 445,199

356,848 300,102

209,185

178,458

April 481,763

353,525 333,114

201,331

175,216

May 456,682

303,948 260,976

252,012

125,489

June 404,786

416,532

314,190

259,033

176,869

July 519,450

371,658 328,062

180,389

201,733

August 413,823

431,958

326,574

315,070

174,976

September 465,086

378,120

373,667

223,189

219,124

October 446,675

352,964

282,518

308,601

320,100

November 587,741

406,838

341,099

259,545

185,124

December 430,564

388,798

364,526

259,523

192,928

5,517,959 4,540,803 3,855,382 2,884,301 2,234,840

57

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS

[Cont'd] 2010 2009 2008 2007 2006 N'000 N'000 N'000 N'000 N'000

6. INTERNALLY GENERATED REVENUE

Taxes 1,504,432 1,420,323 1,148,149 1,004,563 875,060

Fines and fees

13,812

11,283

203,797

126,286

1,139

Licences

34,245

31,038

250,827

40,067

48,780

Earnings and sales

198,207

-

418,640

177,952

5,328

Rent on Government properties

240

297

207,585

57,787

253

Government investment (Dividend)

4,796

28,532

7,922

4,227

5,594

Reimbursements

-

-

-

1,209

-

Miscellaneous

-

204,339

-

-

146,108

Bank interest

8,015

125,827

304,696

294,331

-

Income from sales of fertilizer

-

352,360

127,551

-

-

Sales of unserviceable assets

2,375

10,602

206

-

-

Legal fees

105,946

168,431

158,192

-

-

Examination fees

4,291

3,122

2,809

-

-

Parastatals

434,528

549,236

762,166

-

-

Treasury Cash Office Balance

143,564

156,993

-

-

109,993

Conversion differential (Paris Club Debt Exit)

-

-

114,278

-

-

Proceeds from Wema Bank Shares Divestment

-

-

106,962

-

-

Sales of building

-

-

340,000

-

-

2,454,451 3,062,383 4,153,780 1,706,422 1,192,255

7. EXCESS CRUDE OIL PROCEEDS

January 479,770 479,412 - - -

February

1,545,292

-

-

-

-

March

771,024

1,149,553

1,245,915

1,099,959

-

April

-

622,941

-

331,831

338,057

May

1,776,533

474,919

1,628,969

525,407

358,825

June

118,951

172,634

2,226,046

372,450

-

July

-

145,815

-

697,315

1,527,458

August

1,545,710

1,706,112

411,719

267,975

-

September

129,400

458,824

164,437

16,420

-

October

-

1,804,179

375,552

346,388

-

November

-

634,124

448,229

141,789

1,527,458

December

-

-

558,309

-

500,000

6,366,680 7,648,513 7,059,176 3,799,534 4,251,798

SHELF PROSPECTUS

DATED [**] 2011

58

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

8. DRAWN-DOWN ON FOREIGN LOANS/GRANTS

HSDP II 192,908 60,999 23,445 - 109,923

HIV/AIDS 7,494 41,500 34,784 - 71,082

Water Aid (Borehole, Laterine, etc) - - 5,780 - -

Root and Tuber Expansion Programme - - 12,400 - -

FADAMA III 188,563 89,100 - - -

Procurement initiative 22,346 16,291 - - -

CSDP 160,503 75,000 - - -

Survival & early child care - - 15,539 - -

Basic education - - 1,440 148,103 258,781

Water Sanitation & Hygene (WASH) - - 21,699 - -

Protection and Participation (P&P) - - 1,851 - -

Planning & Communication - - 4,131 - -

571,814 282,890 121,069 148,103 439,786

9. SUNDRY RECEIPTS/REFUNDS

Repayment of Wema Bank Shares' loan 125,823 76,462 - - -

Transfer from Subsidiary Unit Accounts - 61,044 - - -

Transfer from Staff Loans Boards 341,456 - - - -

Refund on Benin/Owena River Basin - - - - -

Banks refunds - - - - -

Unserviceable vehicles income - - - - 12,142

Legal fees - - - - 66,261

Fertilizer Revenue 35,943 37,077 - - 53,896

National Water Rehabilitation Project - - - - 19,657

Examinations Account - - - - 1,474

Road Rehabilitation income - - - - 40,000

Ajilosun Shopping Complex - - - - 13,025

Assisted Bus Scheme - - - - 8,669

Housing, Ikere road - - - - 7,000

Okesa market income - - - - 192

503,222 174,583 - - 222,316

SHELF PROSPECTUS

DATED [**] 2011

59

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL

STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

10. PERSONNEL EMOLUMENTS

Public servants salary 4,393,182 3,392,341 4,105,740

3,113,475

2,493,125

Political office holders salary 1,067,877 738,864 - -

-

Teachers' salary 5,498,919 4,024,143 3,331,884

3,004,541

2,333,427

Leave bonus 336,429 431,837 283,716 352,864

368,042

Furniture allowances 109,486 86,721 567,509 -

-

11,405,893 8,673,906 8,288,849 6,470,880

5,194,594

11. PENSION AND GRATUITY

Pension and gratuity 1,128,055 899,333 786,714 683,095

750,514

Gratuity 912,598 516,290 799,950 727,729

290,000

2,040,653 1,415,623 1,586,664 1,410,824

1,040,514

12. OVERHEADS COSTS

Administrative services 2,123,941 2,443,223 2,570,214

2,304,147

1,959,900

Education services 9,928 21,802 40,768 26,200

34,595

Works and transport 22,968 34,504 56,320 18,185

21,207

Health services 85,216 76,375 50,549 54,163

39,169

Agricultural services 15,075 50,223 50,517 27,213

32,808

2,257,128 2,626,127 2,768,368 2,429,908

2,087,679

SHELF PROSPECTUS

DATED [**] 2011

60

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

13. TRANSFER TO OTHER FUNDS

Civil Service Housing Loan Scheme - 49,038 480,000 100,000 60,000

Civil Service Housing Loan Scheme - Parastatals - 49,038 480,000 35,000 30,000

Civil Service Car Loan Scheme- Parastatals - 8,173 100,000 30,000 -

T.S.C Housing Loan Scheme - 49,038 495,000 67,000 24,000

Civil Service Car Loan Scheme - 32,686 280,000 60,000 55,000

T.S.C Car Loan Scheme - 24,519 285,000 85,000 60,000

Contigency Fund Finance 233,389 251,330 248,292 806,696 128,977

Contigency Protocol 422,689 500,612 233,646 - -

Contigency Gad 1,440,572 1,401,615 936,167 - -

Bursary scheme - - 37,674 - 15,000

Scholarship scheme - - 42,834 28,086 -

Subsidy for Law School students - - 2,160 4,990 1,820

Scholarship for Disabled - - 3,000 5,000 -

National Education Programmes 7,929 19,528 37,263 - 967

Grants to secondary schools/Technical colleges 15,794 15,187 24,117 65,493 -

Grants for primary education - - - 341,927 851,186

Grants to Technical College - 9,999 6,050 - -

Feeding and maintenance of special schools 25,248 21,458 20,121 17,136 17,765

Conduct of schools examinations/SSCE fees 35,960 35,945 36,277 19,976 300

Printing of continuous assesment forms - 425 - 400 -

Private Nur/Primary sch. Inspection & revigoration of sch.

3,798

3,052

6,578

2,125

-

Schools Management programmes - - 8,637 - -

Schools' sport - 2,000 2,000 1,927 1,000

Enterpreneurship Development Project 3,050 - - - -

Christian Pilgrims Operations 49,816 30,000 44,752 20,879 17,534

Muslim Pilgrims Operations 43,680 30,000 50,000 23,722 15,600

Pilgrimage activities (House of Assembly) - - 17,000 - -

Joint Tax Board contribution - 1,323,010 1,318 4,750 1,692

Fueling of Government agencies 69,300 163,694 179,992 101,784 103,483

Utilities services (Finance) 64,202 41,414 61,448 30,400 37,600

Entitlement of former political holders 3,881 7,937 254,675 109,605 61,588

61

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

Charity fund (GAD) 213,211 - 286,349 78,859 45,850

Charity fund (Protocol) 10,000 - - 12,000 14,500

Charity Fund (Protocol), Finance & budget - 198,225 12,000 - 8,450

Monitoring WAEC/NECO exams - 150 500 - -

Cash and material assitance to disaster victim (SEMA) - 19,340 13,777 13,815 -

NABTEB exam fees 4,997 6,394 - - -

Payment to WAEC & NECO 240 48,513 45,300 - -

Committee and Commission 27,750 30,000 25,144 - -

Ire-Akari/Gearitric fund 56,193 - - - -

Economic development forum - - 26,855 - -

Capacity building for teachers 12,750 667 46,845 - -

Ekiti State Cassava Revolution Programme - 2,625 6,620 - -

Feeding of primary and junior secondary schools 109,562 258,674 143,729 - -

Special intervention fund for tertiary institution - - 1,053 - -

Special intervention fund for secondary schools - - 217,000 - -

Special intervention fund for primary schools - - 151,000 - -

Continuous Education centre 300 980 - - -

Free coaching and JAMB forms - - 16,000 - -

Ekiti State emergency management agency 16,234 - 13,777 - -

Constituency cultivation/townhall, popular programme - - 140,000 - -

Capacity building for civil servants 46,042 45,568 - - -

Capacity building for political office holders 7,165 - - - -

Capacity building for legislative staff (HOA Commission) 3,000 - - - -

Sport Consultancy Services (Sport Council) 3 - - - -

Consultancy fees on comm. Devt. IGR (BIR) 76,792 - - - -

Consultancy fees on IGR on advert & bill board (Signage) - 6,219 - - -

Last ORT on TV Programme tagged Enterprise today - 1,488 - - -

Sport competition (Ministry of Youths and Sport) 3,000 480 - - -

State and national Government policy programme - 1,690 - - -

Spare parts to the Assembly Mechanic Workshop - - - - -

Speakers' House and Protocol - 6,000 - - -

62

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

Pilgrimage to Holy lands

41,060

16,000

-

-

-

Salary and allowance for 2nd Assembly members

2,218

257,500

-

-

-

Constituency intervention fund

130,000

133,647

-

-

299,000

Charity fund (P/E)

-

-

-

-

11,500

Contigency fund (Protocol)

-

-

-

-

319,600

Contingency (House of Assembly)

-

15,000

-

-

-

Contingency - Deputy Governor

90,000

-

-

-

-

Contingency Ministry of Environment

1,872

-

-

-

-

Sport development

-

523

-

-

-

Overseas trip for Governor and aides

80,246

-

-

-

37,973

Charity fund (LG & Chieftaincy Affairs)

-

-

-

-

93,215

Finance publication and other radio sponsored prog.

1,969

-

-

-

-

Centralisation of advertisement

121,336

-

-

-

-

Maintenance of speakers/Deputy speaker's house

18,977

-

-

-

- Parliamentary Conference (Local, Africa &

Commonwealth)

19,652

-

-

-

-

Training for Hon. Members/Public hearing on bills 89,082 - - - -

3,602,959

5,119,381

5,519,950

2,066,570

2,313,600

63

HISTORICAL ACCOUNTS

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

14. GRANTS TO PARASTATALS AND TERTIARY INSTITUTION

The Judiciary 670,497 497,116 498,672 376,162 322,123

Judicial Service Commission 66,499 43,583 41,000 12,416 8,053

Ekiti State Library Board 16,606 13,750 11,351 9,786 9,383

Ekiti State Electricity Board 112,091 63,717 46,842 44,206 44,082

College of Education, Ikere Ekiti 1,170,000 1,060,000 1,301,422 657,000 523,540

University Teaching Hospital 1,368,000 821,446 - - -

University of Education, Ikere Ekiti 250,713 220,000 161,773 - -

University of Ado Ekiti 1,790,000 1,210,000 1,320,000 771,000 570,800

University of Science and Technology, Ifaki Ekiti 400,000 - - - -

College of Medcine, Ado Ekiti - - 331,992 331,398 -

Broadcasting Service of Ekiti State (BSES) 232,308 182,180 171,823 142,035 101,766

Ekiti State Sports Council 98,215 74,742 85,988 58,064 46,597

National Sports Festival 2,500 17,350 - - 1,200

Grassroots Sport Development Programme 3,230 17,103 22,188 - -

Ekiti Kete Football Club -

9,650 11,580 - -

Fountain Football Club 19,500 12,143 12,727 15,475 -

Works Ranger Football Club - - - 2,700 1,050

Ekiti State Housing Corporation 81,316 56,210 38,559 16,954 31,294

Ekiti State Local Government Service Commission - - - 1,114 8,439

Nigeria Security and Civil Defence Corps 7,583

5,833 5,462 3,780 3,780

Agricultural Development Project 166,056 121,334 123,358 120,860 92,087

Agric Input Supply Agency - - - 9,497 16,209

Fountain Agric Marketing Agency 25,502 27,362 20,358 - -

Nigerian Legion 2,250

1,050 3,976 4,440 3,552

Cooperative College, Ijero Ekiti 1,300

1,100 1,200 1,093 986

State Universal Basic Education Board (SUBEB) 252,363 342,500 450,000 - -

Ekiti State Water Corporation 258,316 218,114 175,728 - -

IGR by Parastatals Retained 310,237 423,469 762,166 - -

Poultry Development Agency - - - 1,085 1,301

Budgetary provision for newly created parastatals 12,249 - - - - Domestic and extension publicity to Ministry of Civic

Orientation 11,783 - - - -

7,329,114 5,439,752 5,598,165 2,579,065 1,786,242

64

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

15. CAPITAL RELEASES TO MINST./DEPTS/AGENCIES

Agric and Natural Resources 396,226 974,652 883,681 504,993 108,539

SME and Poverty Reduction 365,337 190,420 1,539,957 317,506 22,950

Infrastructure 5,596,840 9,226,761 15,572,360 5,261,438 5,302,487

Education 588,833 485,414 1,851,775 857,461 618,336

Health 563,672 2,225,037 2,053,297 349,158 202,679

Information Services & Social Development 745,367 733,794 88,504 24,425 13,543

Environmental development 375,487 685,890 1,074,043 1,042,392 121,261

Administration 2,103,135 3,239,863 3,520,455 1,686,124 1,776,235

10,734,897 17,761,831 26,584,072 10,043,497 8,166,030

16. EXPENSES OF GENERAL NATURE

Ekiti State contribution to the Local Govt. Joint Account - 182,556 186,243 - -

Payment of interest on local loans - 230,605 171,350 - -

Local loans repayment 4,025,034 - - - -

Legal fees - - 31,599 - -

Fertilizer deduction from source - - 118,635 - 161,100

Payment for fertilizer - - - - -

Public debts charges (electricity) - - - - 8,300

Public debts charges (BIR) - - - - -

Government Joint Account - - - 151,461 117,585

Bank charges - - - - 31,562

Public debt charges (Finance & Budget) - - - 797,492 64,358

National community development - - - - 78,000

Government forum secretariat - - - - 15,000

Outstanding tax liability (FIRS at source) - - - - 23,783

Tsunami deduction from source - - - - -

Contribution to Local Government Pensions 235,732 - - - -

4,260,766 413,161 507,827 948,953 499,688

17. PUBLIC DEBTS CHARGES

Professional fees 171,003 129,306 - - -

Electricity bills 34,755 36,996 - - -

Consultancy fees 67,189 - - - -

Compensation to former Owena Motel Staff - 14,949 - - -

272,947 181,251 - - -

65

HISTORICAL ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

18. CASH AND BANK BALANCES

Cash and Bank 2,222,215 2,285,356 4,656,745 14,730,535 3,712,204

Call Account Balances 243,250 7,000 955,904 4,508,091 2,721,279

Treasury Cash Offices Balances 143,564 156,993 103,284 80,142 109,993

2,609,029 2,449,349 5,715,933 19,318,768 6,543,476

19. INVESTMENTS IN STOCKS

Ashaka Cement Plc 5,380 22,586 22,586 18,129 6,247

Conoil Plc - - 1,350 1,350 3,020

Diamond Bank Plc 93,846 94,390 94,390 - -

Equity Assurance Plc 1,031 1,031 1,031 - -

Guinness Nig Plc - 2,528 2,528 2,528 -

NAL - Sterling - - - - 10,963

LASACO Assurance Plc 951 951 951 - -

Nigerian Bottling Company Plc - 3,363 3,363 4,375 -

NBL - 8,740 8,740 9,160 2,998

Unilever Plc 1,614 1,614 1,614 1,613 1,383

Union Bank of Nigeria Plc 27,301 27,301 27,301 29,514 1,887

Oluwa Glass Plc - - - - 51,940

United Bank for Africa Plc 4,013 4,055 4,460 84,529 1,649

WAPCO - 11,783 11,784 11,784 26,438

First Bank of Nigeria Plc 13,100 6,384 6,384 10,830 3,016

Sovereign Trust 269,400 269,400 269,400 269,400 -

Bank PHB Plc 31,994 31,994 31,994 -

Nigeria Aviation Handling Company 9,932 - - - -

Access Bank Plc 20,580 20,580 - 104,300 -

PZ Plc - 45 - - 120

Flour Mills of Nigeria Plc - 458 - 139 656

CFAO 140 140 139

140 -

First Bank of Nigeria Plc 4,229 4,229 4,229 108,299 -

66

HISTORICAL ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

R.T. Briscoe 77 77 77 409 -

Union Bank of Nigeria Plc 569 569 569 589 -

Vita Foam Plc 1,319 1,319 1,319 1,387 -

Wema Bank Plc 566 566 566 566 78,925

Skye Bank Plc 200,000 200,000 200,000 - -

Finbank Plc 200,000 200,000 200,000 - -

Zenith Bank Plc 300,000 300,000 300,000 - -

Spring Bank Plc - - - - 172,894

African Petroleum Plc - - - - 2,949

Cement Company North of Northern Nigeria Plc - - - 101 357

UAC - - - - 220

Confidence Insurance Plc - - - - 58,250

Oodua Investments Limited - - - - 1,500,000

STACO - - - 1,171 -

Unity Bank Plc - - - 1,994 -

Nigerian-German Chemical - - - 118 -

First City Monument Bank Plc - - - 49,994 -

Guaranty Trust Bank Plc 15,947 - - 10,143 -

International Energy Insurance - - - 4,850 -

Fidelity Bank Plc - - - 120,000 -

Dangote Flour Plc 16,704 - - - -

Dangote Sugar Plc 17,394 - - - -

1,236,087 1,214,103 1,194,775 847,412 1,923,912

20. HOUSING AND VEHICLES LOANS DEBTORS

Teaching Service Commission 1,007,112 1,166,558 11,970 399,814 142,935

Civil Servants 2,036,694 2,179,138 1,803,140 583,865 392,997

3,043,806 3,345,696 1,815,110 983,679 535,932

21. OPERATING LIABILITIES OVER ASSETS

Foreign loans 4,574,967 4,845,803 5,066,514 3,466,149 11,817,270

Local loans 4,883,781 5,000,000 - - 262,652

9,458,748 9,845,803 5,066,514 3,466,149 12,079,922

Less: Quasi-cash assets

Investments in stocks (1,236,087) (1,214,103) (1,194,775) (847,412) (1,923,912)

Housing and Vehicle loans debtors (3,043,806) (3,345,696) (1,815,110) (983,679) (535,932)

Wema Bank shares debtors (152,957) (278,780) (355,440) (462,205) -

5,025,898 5,007,224 1,701,188 1,172,852 9,620,078

67

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

22. FOREIGN LOANS

National FADAMA 31,893 31,645 46,282 - 406,808

National Agric Technical Supervision 29,646 29,416 42,847 - 532,119

National water rehabilitation 59,861 59,396 104,969 - 1,503,803

Health System Fund 55,560 55,128 88,683 - -

Paris Club - - - - 6,245,852

London Club - - - - 3,057,606

IDF - - 20,236 - -

MSADP III 1,450,408 1,439,129 1,451,965 - -

HSDP II 434,847 491,237 856,001 471,470 -

HIV/AIDS 323,699 321,182 276,400 76,171 71,082

UBE 507,482 503,535 512,118 475,098 -

Community Based Poverty Reduction 1,764,882 1,751,157 1,667,013 924,882 -

HSDP (Finance) 59,676 59,212 - - -

National FADAMA III 105,588 104,766 - - -

Multilateral - - - 1,518,528 -

Unreconcilled Balance 60,239

4,883,781 4,845,803 5,066,514 3,466,149 11,817,270

23. AGRIC AND NATURAL RESOURCES

Agriccultural Service Department 13,669 148,921 329,277 279,355 20,864

Planning, Research and Statistic - - 182 - -

Finance and administration - - 12,192 - -

Produce department - - 15,336 - 12,680

Rural Development Department 4,754 99,347 8,446 - -

Tree crop department - - 294 - 12,375

Forestry department 12,065 - 1,090 - -

Farm Settlement and Farmers Development Agency 31,392 - - - -

Livestock department - - 80,000 - 800

Fisheries department - - - - 829

Veterinary department - - 14,250 - 17,351 Agricultural Development Project 236,857 1,561 316,055 38,340 8,000

Agric Credit Agency - - 1,000 33,737 21,500

Agric Input Supply Agency 6,285 - 25,000 10,000 12,140

Fountain Agric Marketing Agency - 592,762 - -

Sericulture Programme - 1,009 10,460 - 2,000

Investment in Ikun Diary 33,411 177,697 300,000 - -

Cassava Revolutionary Programme - 131,052 70,099 - -

Fertilizer 91,204 - - 30,395 -

National Community Development - - - 42,000 -

State Agric Project - - - 71,166 -

429,637 1,152,349 1,183,681 504,993 108,539

68

HISTORICAL ACCOUNTS

24. SME AND POVERTY REDUCTION

Ministry of Commerce, Industry and Cooperative 348,108 132,468 273,019 11,572 22,950

Board of Tourism 252 4,910 1,669 - -

Department of Micro Credit Scheme 214 4,262 1,162,019 201,634 -

Community-based Poverty Reduction Agency - - 100,200 - -

Consolidated Poverty Reduction Agency - - 3,050 - -

Ekiti Enterprise Development Agency (EEDA) 4,075 43,780 - - -

Job Creation & Employment Agency 7,938 5,000 - - -

Purchase of financial market instruments - - 700,000 104,300 -

Ministry of Public Utilities 4,750 - - - -

365,337 190,420 2,239,957 317,506 22,950

25. INFRASTRUCTURE

Electricity Board 42,608 214,605 108,135 87,612 180,300

Department of Information Technology 1,578 32,616 23,201 7,720 16,602

Ekiti State Water Corporation 567,201 639,242 2,817,533 1,207,461 209,583

UNICEF Assisted Water Sanitation Project (WATSAN) - 140,812 78,303 1,167 -

Ministry of Works & Infrastructure 4,859,968 7,567,632 12,345,530 4,355,072 4,881,638

Ekiti State Road Maintenance Agency (EKROMA) - 64,173 23,057 78,643 6,064

Ekiti State Housing Corporation 1,219 567,681 166,400 36,763 8,300

Planning & investigation new scheme - - 4,845 - -

Community water project 49,208 - 5,356 - -

Public Transport Department 75,058 - - - -

Counterpart fund to Water on MDG - - - (513,000) -

5,596,840 9,226,761 15,572,360 5,261,438 5,302,487

69

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2,007 2006

N'000 N'000 N'000 N'000 N'000

26. EDUCATION

Ministry of Education and Technology 85,919 257,041 438,870 85,449 4,000

Ekiti State Scholarship Board - 234 11,892 - -

State Universal Basic Education (SUBEB) - - 637,643 293,603 -

Board for Technical & Vocational Education 14,953 53,926 68,186 47,710 1,000

Agency for Adult & Non-Formal Education 2,044 1,258 3,151 300 500

Ekiti State Library Board - 3,654 7,502 5,858 1,750

Education Endowment Fund - 1,500 - - -

University of Ado-Ekiti (UNAD) 100,000 - 195,500 150,000 105,000

College of Education, Ikere Ekiti 4,000 - 34,000 120,000 60,000

University of Education, Ikere-Ekiti - 100,000 375,000 - -

University of Science and Technology 360,128 - - - -

School Enterprise Project 21,789 67,800 80,031 - -

Teaching Service Commission - - - - 6,300

Expenditure of foreign loan draw-down - - - 154,541 439,786

588,833 485,413 1,851,775 857,461 618,336

27. HEALTH

Ministry of Health 542,169 2,091,964 1,859,788 196,143 89,497

Central Medical Centre 360 - 14,515 14,464 -

Hospitals' Management Board -

6,304 8,371 7,189 15,731

State Action Committee on AIDS 20,678 48,000 49,553 - -

Drawn-Down on foreign loans (PFMU) - - 121,070 - -

University Teaching Hospital - 70,000 - - -

Primary Health Comm. Development Bureau 465 8,770 - - -

HSDP counterpart fund - - - 11,362 97,451

College of Medicine, UNAD - - - 120,000 -

563,672 2,225,038 2,053,297 349,158 202,679

70

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2,007 2006

N'000 N'000 N'000 N'000 N'000

28. INFORMATION SERVICES & SOCIAL DEVELOPMENT

Brodcasting Service of Ekiti State (BSES) 600,071 272,367 50,567 9,500 3,500

Ministry of Information and Civic Orientation 29,200 29,433 23,490 14,745 6,016

Ministry of Youth and Sports Development 111,553 336,499 4,526 - -

Ekiti State Sports Council - - 2,577 - -

Ministry of Women Affairs & Social Welfare 4,543 5,782 7,344 - 2,500

Sports Development - 89,713 180 -

Women Development Centre - - - - 1,528

Directorate of Information Technology - - - - -

745,367 733,794 88,504 24,425 13,544

29. ENVIRONMENT, LANDS AND HOUSING

Ministry of Lands and Urban Planning 115,006 386,165 705,724 88,653 53,188

State Environmental Protection Agency (SEPA) 74,898 11,580 133,360 859,452 878

Waste Management Board 166,904 269,197 228,169 3,201 16,752

State Emergency Management Agency (SEMA) 458 7,413 6,559 3,364 27,300

Office of the Surveyor-General 16,726 11,535 231 - -

Ministry of Environment (Forestry) 1,495 - - - 5,443

Ministry of Environment - - - 87,723 17,700

375,487 685,890 1,074,043 1,042,393 121,261

SHELF PROSPECTUS

DATED [**] 2011

71

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2,007 2006

N'000 N'000 N'000 N'000 N'000

30. GENERAL ADMINISTRATION

Bureau of Public Building

310,430

1,180,604

-

-

-

Ministry of Works and Transport

-

-

917,256

379,058

826,290

Ministry of Justice

-

-

74,288

2,180

19,500

The Judiciary

109,628

105,000

263,394

-

3,000

Judicial Service Commission

-

-

28

957

-

General Administration Department

768,280

993,694

1,130,737

541,059

740,368

Liaison Office, Lagos

-

-

-

250

2,195

Liaison Office, Abuja

9,179

-

10,234

-

205

Utility Services Department

-

273

626

-

503

Political and inter-party relations department

-

-

-

-

1,000

Ministry of Local Govt. and Chieftancy Affairs

-

-

9,293

-

1,000

Deputy Governor's Office

-

619

9,893

5,873

2,109

Government House and Protocol

8,457

78,140

10,463

5,978

35,939

Ekiti State Boundary Commission

192

-

666

2,653

550

Christian Pilgrims Welfare Board

-

-

-

-

-

Muslim Pilgrims Welfare Board

229

-

9,244

-

-

Ekiti State House of Assembly

-

735,000

378,460

368,144

-

Balace carried forward

1,206,395

3,093,330

2,814,582

1,306,152

1,632,659

72

HISTORICAL ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

30. GENERAL ADMINISTRATION (CONT'D)

Balace brought forward

1,206,395

3,093,330

2,814,582

1,306,152

1,632,659

Ministry of Special Duties, Inter-

government Affairs

381

-

-

1,100

250

New Partnership for Africa's Development

100

-

2,571

-

1,000 Consolidated State Poverty Reduction

Agency

-

-

-

2,000

52,090 Ekiti House of Assembly Service

Commission

-

-

37,790

747 Ekiti State House of Assembly

Constituency project

570,000

-

520,000

-

30,400

Office of Establishment and Training

500

-

977

-

2,500

Pension Board

-

-

2,000

-

500

Local Government Service Commission

-

11,143

-

-

-

Office of the State Auditor-General

-

-

8,925

260

3,085

Local Government Audit

-

-

4,904

930

-

State Planning Commission

19,912

35,372

3,815

28,515

9,556

Ministry of Finance and Economic Development

1,625

1,290

12,255

7,922

5,238

Accountant-General's Office

3,518

5,126

12,707

8,638

3,360

Board of Internal Revenue

2,190

73,543

3,513

345

3,107

Department of Energy Matters

-

20,059

630

-

-

Cabinet Department

480

-

830

834

-

Special Services Division

-

-

508

410

-

Civil Service Commission

-

-

457

1,332

700

State Independent National Electoral Commission (INEC)

4,287

-

89,000

325,201

20,009

Due process unit (Public Procurement)

792

-

4,991

-

-

Ministry of Electricity and Communication

-

-

-

-

11,781

Local Government Affairs Department

-

-

-

-

-

Tourism Board

-

-

-

1,738

-

Government asset and commercial services

112,582

-

-

-

-

Government House Infrastructural Unit

178,114

-

-

-

-

Office of the Secretary to the State Government

1,436

-

-

-

-

Office of the Head of Service

223

-

-

-

-

Ekiti State Signage & Advertisement

Agency

300

-

-

-

-

Servicom Agency

300

-

-

-

-

2,103,135 3,239,863 3,520,455 1,686,124 1,776,235

SHELF PROSPECTUS

DATED [**] 2011

73

HISTORICAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS [Cont'd]

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

31. STATEMENT OF ADJUSTMENTS

Statement of Assets and liabilities

.1 Investment in Stocks

Per audited financial statements 1,236,087 1,214,103 1,756,109 847,412 1,923,912

Adjustments - - (561,334) - -

Balance carried forward 1,236,087 1,214,103 1,194,775 847,412 1,923,912

.2 Operating liabilities over assets

Per audited financial statements 3,990,692 5,007,224 1,140,052

2,272,196 10,719,422

Adjustments - - 561,136

(1,099,344)

(1,099,344)

Balance carried forward 3,990,692 5,007,224 1,701,188 1,172,852 9,620,078

.3 Wema Shares Debtors 152,957 278,780 355,242 462,205 -

Per audited financial statements - - 198 - -

Adjustments

152,957 278,780 355,440 462,205 -

Balance carried forward

.4 Consolidated Revenue Fund

Per audited financial statements 861,440 489,905 1,592,366 3,106,960 2,100,655

Adjustments - - -

(99,344)

(99,344)

Balance carried forward 861,440 489,905 1,592,366 3,007,616 2,001,311

.5 Capital Development Fund

Per audited financial statements 1,747,589 1,959,444 4,123,566 17,311,151 5,542,165

Adjustments - - - (1,000,000) (1,000,000)

Balance carried forward 1,747,589 1,959,444 4,123,566 16,311,151 4,542,165

74

HISTORICAL ACCOUNTS EKITI STATE GOVERNMENT OF NIGERIA

2010 2009 2008 2007 2006

N'000 N'000 N'000 N'000 N'000

31. STATEMENT OF ADJUSTMENTS (CON'TD)

Statement of Consolidated Revenue Fund

.1 Opening Balances

Per audited financial statements 489,905 1,592,366 3,106,960 2,100,655 331,639

Adjustments - - (99,344) (99,344) (99,344)

Balance carried forward 489,905 1,592,366 3,007,616 2,001,311 232,295

.2 Transfer to Capital Development Fund

Per audited financial statements 4,000,000 3,530,000 (2,000,000) (2,000,000) -

Adjustments - - 99,344 - -

Balance carried forward 4,000,000 3,530,000 (1,900,656) (2,000,000) -

Statement of Capital Development Fund

.3 Opening Balances

Per audited financial statements 1,959,444 4,123,566 16,211,808

5,542,165 3,255,534

Adjustments - - 99,343

(1,000,000)

(1,000,000)

Balance carried forward 1,959,444 4,123,566 16,311,151 4,542,165 2,255,534

.4 Transfer from Consolidated Revenue Fund

Per audited financial statements - - 2,000,000 2,000,000 2,000,000

Adjustments - -

(99,343) - -

Balance carried forward - - 1,900,657 2,000,000 2,000,000

32. ACCOUNTING DATE

The financial statements covered a period of five years to 31 December, 2010. The State's accounting year end is 31 December of each year.

SHELF PROSPECTUS

DATED [**] 2011

75

15. STAUTORY AND GENERAL INFORMATION

I. Consents The under listed parties have given and not withdrawn their written consents to the issue of this Prospectus with their names and reports (where applicable) included in the form and context in which they appear:

Representatives of the State Executive Council:

His Excellency, Dr. Kayode Fayemi

Her Excellency, Mrs. Olufunmilayo Adunni Olayinka

Alhaji (Dr.) Ganiyu Abiodun Owolabi

Mr. Dapo Kolawole

Mr. Oyebanji Abiodun

Barrister Dayo Akinlaja

Dr. Oluwole Adedokun Olugboji

Dr. (Mrs.) Eniola Olaitan Ajayi

Otunba Remi Adedayo Bodunrin

Chief Folorunso Bamidele Olabode

Dr. Adio Folayan

Mrs. Fola Richie-Adewusi

Mr. Adesola Adebayo

Dr. Wole Olugboji

Mr. Olubunmi Adelugba

Hon Funminiyi Afuye

Omotosho Paul Ayodele

Mr. Kayode Francis Olaosebikan

Alhaji Jinadu Ayodele Shedu

Mr. Apalara Wole-Adewumi

Chief Emmaual Dayo Fadipe

Attorney General to the State Government: Barrister Dayo Akinlaja

Auditor-General of the State: Mr. Ayodele Gabriel Ajayi

Accountant-General of the State: Mr. A.B. Owolabi

76

STAUTORY AND GENERAL INFORMATION (CONT’D)

Financial Adviser/ Lead Issuing House/ Lead Book

Runner:

Greenwich Trust Limited.

Joint Issuing Houses/ Co Book Runners: UBA Capital Limited;

Skye Financial Services Limited;

Fidelity Bank Plc;

FBN Capital Limited;

Capital Bancorp Limited;

Chapel Hill Advisory Partners Limited;

MorganCapital Securities Limited and

BGL Plc.

Joint Trustees: Skye Trustees Limited;

UBA Trustees Limited and

Union Trustees Limited.

Joint Solicitors to the Programme: Simmons Coopers & Partners;

SPA Ajibade & Co.and

Tony Uponi & Co.

Joint Solicitors to the Trustees: ABFR & Co.;

George-Ikoli & Okagbue; and

Tokunbo Orimobi & Co.

Reporting Accountant: Balogun Badejo & Co.

Lead Stockbroker: Greenwich Securities Limited.

Joint Stockbrokers: Anchoria Investment and Securities Limited;

Cowry Asset Management Limited;

Fidelity Securities Limited;

Fountain Securities Limited;

Independent Securities Limited;

Interstate Securities Limited;

Lead Securities and Investment Limited;

MBC Securities Limited;

Partnership Investment Company Limited and

Skye Bank Stockbrokers Limited.

Registrars: Wema Registrars Limited.

Receiving Banks: Access Bank Plc;

FCMB Plc;

Intercontinental Bank Plc;

UBA Plc and

Zenith Bank Plc.

Rating Agencies: Agusto & Co. Limited; and

Global Credit Rating Company Limited.

77

STAUTORY AND GENERAL INFORMATION (CONT’D)

II. DOCUMENTS AVAILABLE FOR INSPECTION

The following documents will be available for inspection throughout the life of the Bond at the principal offices of the Joint Issuing Houses and from the State Ministry of Finance, Ado-Ekiti, Ekiti State.

• The Ekiti State Bonds, Notes and Other Securities Issuance Law 2011;

• The Resolution passed by the Ekiti State House of Assembly pursuant to the Enabling Law,

authorizing the creation of a Sinking Fund for the monthly deduction of adequate sums of

money for the repayment of principal and interest to be paid into the sinking fund

account(s) from the Statutory Allocation by the Accountant General of the Federation for

debt service throughout the tenor of the Bond as published in the Official Gazette of the

State;

• The Resolution of the Ekiti State Executive Council authorizing the Bond Issue, published in

the Official Gazette of the State;

• The Letter of Approval dated xxxxx , in respect of the ISPO issued by the Honourable

Minister for Finance;

• The Programme Trust Deed dated xxxxxx between Ekiti State Government of the one part

and UBA Trustees Limited, Skye Trustee Limited and Union Trustees Limited of the other

part;

• The audited financial statements of Ekiti State for each of the five years ended 31st

December 2006, 2007, 2008, 2009 and 2010;

• The Reporting Accounts Memorandum on the State’s five years audited financial statement

and the Revenue and Expenditure Forecasts for 7 years ended December 31, 2018;

• The Feasibility Reports commissioned by the State in connection with the projects to be

funded with the proceeds of the Bond Issuance Programme;

• The Schedule of Claims & Litigations involving the State, together with the opinion of (Joint

Solicitors to the Issue) prepared in connection therewith;

• The written consents indicated above; and

• The Letter from SEC confirming the registration of the Bond Issuance Programme.

78

16. EXTRACTS OF THE PROGRAMME TRUST DEED

3. APPOINTMENT OF TRUSTEES AND ACCEPTANCE OF TRUST

3.1 The Trustees are hereby appointed as the representative of the Holders in accordance with the provisions of this Deed.

3.2 By execution hereof, the Trustees have accepted and agreed to be bound by the powers, duties and obligations of the Trustees specifically set forth herein.

3.3 The Trustees shall have no duty, responsibility or obligation for the issuance of

Bonds or for the validity or exactness thereof, or of any document relating to such issuance.

3.4 The Trustees shall have no duty, responsibility or obligation for the payment of

Bonds except in accordance with the terms and provisions hereof or any Supplemental Trust Deed or any agreement to which they are party, and only to the extent of the applicable Sinking Fund held in trust by the Trustees for the purpose of such payment.

3.5 Prior to an Event of Default and after the curing or waiving of all Events of Default

which may have occurred, the Trustees shall not be liable except for the performance of such duties as specifically set down herein.

3.6 The Trustees shall have no liability for any act or omission to act hereunder, or

under any other instrument or document executed pursuant hereto except for the Trustees’ gross negligence and wilful misconduct.

3.7 The duties and obligations of the Trustees shall be determined solely by the

express provisions hereof, and no implied powers, duties or obligations of the Trustees, save as mandated by the ISA, shall be construed into this Deed.

3.8 Upon the occurrence of an Event of Default, the Trustees shall subject to the

provisions of this Deed, exercise such rights and utilise such powers vested in them under this Deed, the ISA and the Law, and shall use the required degree of care and skill in the exercise of their duties.

3.9 The Trustees shall not be required to expend or risk their own funds or otherwise

incur any liability in the performance of their duties or in the exercise of their rights or powers as Trustees, except such liability as may result from their gross negligence and wilful misconduct.

3.10 Notwithstanding any other provisions hereof, the Trustees shall have no liability

for:

(a) an error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustees were negligent in ascertaining the pertinent facts or

(b) action taken or omitted to be taken by them in good faith in accordance with the lawful direction of the Holders of not less than a majority in principal amount of Bonds then outstanding.

79

EXTRACTS OF THE PROGRAMME TRUST DEED (CONT’D)

4. CREATION OF SINKING FUND

There is hereby established the following Fund:

a) The Sinking Funds, to be administered by the Trustees separately for each Series of Bonds. The amounts standing to the credit of each Sinking Fund from time to time shall be applied to meet the obligations of the Issuer as follows:

(i) Coupon Payments; (ii) Premium payments, if any (iii) Trustees fees and expenses; (iv) Principal repayment at Maturity or Early Redemption (as the case

may be); and (v) Any excess left over at the end of the Programme and after due

discharge of all the Issuer’s obligations aforesaid shall be paid over to the Issuer.

b) Amounts in each Sinking Fund shall be pledged to the Trustees for the

benefit of the Holders under the applicable Series of Bonds.

c) Monthly payments shall be made in an amount equal to the principal and interest including all other monies (if any) due and payable by the Issuer in respect of the Bonds into a Sinking Fund held by the Trustees as set out in the Trust Deed.

d) The security interest created above shall be a continuing security and shall be of full force and effect until the satisfaction, performance and discharge of all of the Issuer’s obligations stated herein and in the relevant Supplemental Trust Deed. The term “obligations” as used herein, means all of the indebtedness, obligations and liabilities of the Issuer to the Holders, individually or collectively, whether direct or indirect, joint or several, absolute or contingent, due or to become due or hereafter arising under or in respect of the Programme.

e) Without prejudice to the generality of the foregoing and the provisions of

Clause 8 of this Deed, the security interest created herein shall be a first charge and shall rank prior to any other secured obligations of the Issuer and shall not be subordinated to any present and/or future indebtedness of the Issuer.

7. INVESTMENT OF MONEYS IN THE SINKING FUNDS

7.1 Monies in the Sinking Funds shall be invested as soon as practicable upon

receipt in Permitted Investments as selected by the Trustees; provided that

i. the maturity date or the date on which such Permitted Investments may be redeemed at the option of the Trustees shall coincide as nearly as practicable with (but shall in no event be later than) the date(s) on which moneys in the applicable Sinking Fund from which the said Permitted Investments were made will be required for the purposes thereof, and

ii. the Trustees shall select Permitted Investments in accordance with prudent investment standards;

80

EXTRACTS OF THE PROGRAMME TRUST DEED (CONT’D)

iii. the Trustees shall select and make such Permitted Investments with the prior

consent and approval of the Investment Committee. 7.2 Investment of amounts comprised in any Sinking Fund shall be made in the name

of such Sinking Fund.

7.3 The return on any Permitted Investment made pursuant to this Clause 7 shall be invested by the Trustees so as to form a part of that Sinking Fund.

7.4 The Trustees shall not be liable for making any investment authorised by the

provisions of this Deed in the manner provided in this clause or for any loss resulting from any such investment so made, except for their own gross negligence, wilful misconduct and/or insider or self-dealing constituting a breach of trust under any applicable law.

8. OBLIGATIONS OF THE ISSUER

The Issuer covenants and agrees that: 8.1 It will ensure that the Pledged Revenues shall be appropriated in accordance with

the provisions of the Law, and promptly cause to be paid into the applicable Sinking Fund, the principal, premium, (if any), coupon, and other payments due in respect of each Series of Bonds issued hereunder at the place, on the dates and in the manner provided herein and in the applicable Supplemental Trust Deed.

8.2 Without limiting the generality of the granting clauses set forth in Clause 4 above and as security for the payment of the principal, coupon, premium, (if any) and other payments due with respect to the Bonds, it hereby grants the Trustees as a first charge, a pledge of and lien on the Sinking Funds. Such pledge shall be valid and binding from the date hereof and all Pledged Revenues shall immediately be subject to such pledge as and when received by the Issuer, without any physical delivery thereof or any further act.

8.3 Save for the security interest referred to in Clause 8.2 above, it will not create any

pledge, lien or other encumbrance upon, or permit any pledge, lien or other encumbrance to be created on the Sinking Funds.

8.4 It will direct the AGS to issue on behalf of the State, an ISPO authorising the AGF

to deduct from the monthly statutory allocations accruing to the State from the Federation Account, such amounts as are specified by the Trustees as required to be paid into the applicable Sinking Fund, and directing same to be paid into such Sinking Fund for the purpose of further securing the fulfillment of the Issuer’s obligations with respect to principal and or coupon payments on the Bonds.

8.5 It will faithfully perform at all times any and all covenants, undertakings,

stipulations and provisions on its part to be performed as provided herein and in the relevant Supplemental Trust Deed for every issue of Bonds executed and delivered hereunder and in all proceedings of the Issuer pertaining thereto.

8.6 It shall pay the Trustees such fees as may be agreed between the Parties, and

reimburse the Trustees, all reasonable and proper out of pocket costs and expenses as they may incur in connection with the performance of their duties under this Deed including the costs for convening and holding meetings of Holders; provided that, for any additional costs which will cause the costs to

81

EXTRACTS OF THE PROGRAMME TRUST DEED (CONT’D)

exceed, in the aggregate, [●] Million Naira (N[●]) in any one year, the Trustees shall seek and obtain the prior written consent of the Commissioner to incur such costs and expenses.

8.7 Make available to the Trustees any monies necessary to perform or discharge any

contractual commitment, indemnity or other obligation entered into by or binding upon the Trustees in the exercise of their powers under this Deed, and all liabilities in respect thereof shall be a charge upon the applicable Sinking Fund.

8.8 Ensure that for as long as any Series of Bonds remain outstanding, the

Appropriation Law shall make provisions for its annual debt service obligations under this Deed or the relevant Supplemental Trust Deed as a recurrent expenditure payable from the Consolidated Revenue Fund.

9. POWERS, RIGHTS, DUTIES AND RELIEFS OF THE TRUSTEES

9.1 Subject to the provisions of the Law and this Deed, the Trustees shall enjoy all

powers, reliefs, and indemnities of Trustees preserved under the Trustees Act and all other applicable laws for the time being in force.

9.2 The Trustees shall have the power to:

9.2.1 effectively manage any Sinking Fund in accordance with the Law, for the purpose of making principal and/or coupon payments on each Series of Bonds issued under the Programme;

9.2.2 enforce any agreement or covenant made to secure the interest of the Holders, and resort to such remedies as may be appropriate, including instituting or defending proceedings in connection with the management of any Sinking Fund;

9.2.3 do any act in accordance with the Law, the ISA, and any applicable law which shall be for the benefit of the Holders.

9.3 The Trustees shall have the following duties and responsibilities:

9.3.1 To act in accordance with the provisions of the Law, the ISA, and any

applicable law and safeguard the security for the Issuer’s debt obligations under the Programme, provided by the Sinking Funds;

9.3.2 To receive, manage and administer all the Sinking Funds for the benefit of the Holders, and to hold and apply the returns thereon received in accordance with this Deed;

9.3.3 To retain control over the Sinking Funds and keep the moneys and Assets

derived from their respective management separate from all other monies and assets within their control, in the ordinary course of business;

9.3.4 To advise the Issuer when contributions to a Sinking Fund will be

sufficient with or without further accumulations of coupon, but without further payments of contributions, to enable the Issuer to redeem the

82

EXTRACTS OF THE PROGRAMME TRUST DEED (CONT’D)

Bonds, at the time of their maturity; and also to inform the Issuer as to when to recommence contributions into the applicable Sinking Fund;

9.3.5 To give a report on the amounts standing to the credit of the Sinking Funds at each meeting of Holders of a Series of Bonds;

9.3.6 To summon, as and when necessary, meetings of all Holders of a Series

whereat a Statement of Affairs on the management of the applicable Sinking Fund shall be presented, and or any other necessary business and or matter shall be presented and determined. A meeting shall be convened by the giving of at least twenty-eight (28) clear days written notice to all Holders (specifying the agenda at the meeting), and the said notice shall also be published in at least two (2) national newspapers. The procedure and regulations at such a meeting of the Holders shall be in accordance with Schedule 1 of this Deed.

9.3.7 Not to enter into contracts or other arrangements that would amount to a

conflict of interest in the performance of their obligations under the Law or this Deed, or any other customary obligations of Trustees;

9.3.8 To prepare and deliver to the Commissioner quarterly reports and

financial statements in respect of the management of each Sinking Fund in a format approved by the Commissioner.

9.4 It is hereby expressly agreed and declared as follows:

9.4.1 The Trustees, acting reasonably and in good faith, may in relation to this

Deed, act on the opinion or advice of, or any information from any solicitor, valuer, surveyor, broker, auctioneer, accountant, or other expert, whether obtained by the Issuer or by the Trustees, and shall not be responsible for any loss occasioned by their reliance on such opinion, advice or information; and any such advice, opinion or information may be obtained or sent by letter, facsimile or electronic mail;

9.4.2 The Trustees shall not be responsible for the monies paid by Holders for

the Bonds or be bound to see to and or monitor the application thereof;

9.4.3 Save as herein otherwise provided, the Trustees shall not be bound to take any steps to ascertain whether any event has happened upon the occurrence of which any Series of Bonds may be declared immediately repayable;

9.4.4 The Trustees shall not be responsible for having acted upon any

resolution passed at a duly convened, properly constituted meeting of the Holders in respect whereof minutes have been made and signed, even though it may subsequently be found that there was some defect in the constitution of the meeting or the passing of the resolution with the effect that the resolution was not valid or binding upon the Holders;

9.4.5 Without prejudice to the right of indemnity conferred by law on Trustees,

the Trustees and every attorney, manager, agent or other person appointed by the Trustees hereunder shall be entitled to be indemnified by the Issuer in respect of all liabilities and expenses incurred by them or him in the execution of the powers and trusts hereof or of any powers, authorities or discretions vested in them or him pursuant to these

83

EXTRACTS OF THE PROGRAMME TRUST DEED (CONT’D)

presents provided that the Trustees have not been grossly negligent or have not acted in default of their powers;

9.4.6 Without prejudice to the jurisdiction of any competent court, the Trustees

shall have the full powers to determine all questions and doubts arising in relation to any of the provisions hereof, (whether or not the same shall relate in whole or in part to acts or proceedings of the Trustees hereunder);

9.4.7 The Trustees shall not be liable for any act pursuant to or under this

Deed, save only for any breach of trust committed by them, provided that nothing contained in this clause shall exempt the Trustees from or indemnify them against any liability for breach of trust where the Trustees fail to show the degree of care and diligence required of them, having regard to the provisions hereof conferring on them any powers, authorities or discretions;

9.4.8 Subject to Clause 8.6 above, the Trustees may employ and pay an agent,

whether a solicitor or other person, to transact or concur in doing all acts required to be done by the Trustees, including the receipt and payment of money, and any such person shall be entitled to charge and be paid all usual professional fees and other charges;

9.4.9 The Issuer shall indemnify the Trustees in so far as may be lawful in

respect of all costs and expenses incurred by the Trustees in relation to or arising out of any application made to any court by the Trustees or any of the Holders for an order that the trust hereof may be carried out under the direction of the court or for an order or declaration relating to the administration of the trust hereof or the enforcement of the rights hereunder of the Trustees or the construction of this Deed;

9.4.10 In the absence of bad faith and gross negligence on the part of the

Trustees, the Trustees may conclusively rely upon and shall be protected in acting or refraining from acting upon any document, including but not limited to any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other paper or document reasonably believed by them to be genuine and to have been signed or presented by proper officials of the Issuer relating to any matter primarily within the knowledge of the State, the Holders or agents or attorneys of the Holders, as sufficient evidence thereof; provided that in the case of any such document specifically required to be furnished to the Trustees hereby, the Trustees shall be under a duty to examine the same to determine whether it conforms to the requirements thereof. The Trustees shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, or other paper or document submitted to the Trustees; provided however that the Trustees, in their discretion, may make such further inquiry or investigation into such facts or matters as they may deem prudent;

9.4.11 Subject to Clause 10.2, the Trustees shall be entitled to assume without

enquiry, in the absence of knowledge by or express notice to them to the contrary, that the State is duly performing and observing all the

84

EXTRACTS OF THE PROGRAMME TRUST DEED (CONT’D)

covenants and provisions herein contained which are to be performed and observed by the State and it shall be in the discretion of the Trustees whether to take any action or proceedings or to enforce the performance thereof, and the Trustees shall not be bound to declare any Series of the Bonds immediately repayable or to take any steps to enforce payment thereof or any of the provisions of this Deed unless and until in any of such cases the Trustees are required to do so in writing by the registered Holders of at least three quarters (¾) of the nominal value of the Bonds or by a Special Resolution passed at a duly convened meeting of Holders; Provided that the Trustees shall in any case inform the Holders of the happening of any Event of Default that comes to their knowledge;

9.4.12 The Trustees in the exercise of the powers and discretions vested in them

pursuant to this Deed shall comply with the provisions of the ISA and any other applicable law.

85

17. RECEIVING AGENTS

The Prospectuses incorporating Application Forms may be obtained free of charge from any of the

following SEC-registered Receiving Agents, to whom brokerage commission of 0.75% will be paid

on the value of Bonds allotted in respect of applications bearing their official stamps.

The Issuing Houses cannot accept responsibility for the conduct of any of the institutions listed

below. Investors are therefore advised to conduct their own independent enquiries before choosing

an agent to act on their behalf. Evidence of lodgement of funds at any of the Receiving Agents

listed below, in the absence of corresponding evidence of receipt by the Issuing Houses, cannot

give rise to a liability on the part of the Issuing Houses under any circumstances.

BANKS Access Bank Plc

Citi Bank Limited

Diamond Bank Plc

Ecobank Nigeria Plc

Enterprise Bank Limited

Equitorial Trust Bank Ltd

Fidelity Bank Plc

First Bank of Nigeria Plc

First City Monument Bank Plc

Fin Bank Plc

Guaranty Trust Bank Plc

Intercontinental Bank Plc

Key Stone Bank Limited

Main Street Bank Limited

Oceanic Bank International Plc

Skye Bank Plc

Stanbic IBTC Bank PLC

Standard Chartered Bank Ltd

Sterling Bank Plc

Union Bank of Nigeria Plc

Unity Bank Plc

Wema Bank Plc

Zenith Bank Plc

STOCKBROKERS A.A Stockbrokers Limited Adamawa Securities Limited

AIL Securities Ltd Alliance Capital Management Company Ltd

Altrade Securities Ltd AMYN Investments Ltd Anchoria Investment & Securities Ltd

Apel Asset & Trust Limited APT Securities & Funds Ltd

Associated Asset Managers Ltd Atlas Portfolio Ltd

Belfry Investment & Securities Ltd Best link Investment Ltd

Best Worth Assets & Trust Ltd BFCL Assets & Securities Ltd BGL Securities Ltd

BSD Securities Ltd Bytofel Trust & Securities Ltd

Calyx Securities Ltd Camry Securities Ltd

Capital Asset Ltd Capital Bancorp Ltd

Capital Express Securities Ltd Capital Trust Brokers Limited Cash Craft Securities Ltd

Centre-Point Investment Ltd Century Securities Ltd

City-Code Trust & Investment Ltd Consolidated Investment Ltd

Cooper Fleming Stockbrokers Ltd Cordross Capital Ltd

Coretrust & Investment Ltd Counters Trust Securities Ltd Cowry Asset Management Ltd

Crossworld Securities Ltd CSL Stockbrokers Ltd

Davandy Finance & Securities Ltd De-Canon Investment Ltd

De-Lords Securities Ltd Denham Management Ltd

Dependable Securities Ltd Dynamic Portfolios Ltd

EBN Securities Ltd ECL Asset Management Ltd Emerging Capital Ltd

Empire Securities Ltd Enterprise Stockbroker Plc

Forte Asset Management Ltd Forthright Securities & Investments Ltd

Fountain Securities & Investment Ltd Future View Securities Ltd

Gidauniya Investment & Securities Ltd Global Assets Management (Nig) Ltd Golden Securities Ltd

Greenwich Trust Ltd GTI Capital Ltd

Heartbeat Investments Limited Hedge Securities & Investment Company

Ltd Horizon Stockbrokers Ltd

IBTC Asset Management Ltd ICMG Securities Limited ICON Stockbrokers Ltd

Ideal Securities & Investments Ltd Independent Securities Ltd

Intercontinental Securities Ltd Integrated Trust & Investments Ltd

International Standard Securities Ltd Interstate Securities Ltd

Investment Centre Ltd Investment Masters & Trust Ltd Jenkins Investment Ltd

Kapital Care Trust & Securities Ltd Kinley Securities Ltd

Kundila Finance Services Ltd Lambeth Trust & Investments Company Ltd

LB Securities Ltd Lead Capital Ltd

Lighthouse Asset Management Ltd Maclaize Trust & Securities Ltd Mainland Trust Ltd

Maninvest Asset Management Ltd Marimpex Finance & Investment Ltd

Marina Securities Limited Maven Asset Management ltd

Maxifund Investment & Securities Ltd Mayfield Investment Ltd

MBC Securities Ltd MBL Financial Services Ltd

Mega Equities Ltd Mercov Securities Ltd Meristem Securities Ltd

Metropolitant Trust Nigeria Ltd Midas Stockbrokers Limited

Pivot Trust & Investment Company Ltd Premium Services Ltd

Professional Stockbrokers Ltd Profund Securities Ltd

PSL Securities Ltd Pyramid Securities Ltd Quantum Securities Ltd

Reading Investments Ltd Regency Assets Management Ltd

Resano Securities Limited Resort Securities & Trusts Ltd

Reward Inv & Sec Ltd RivTrust Securities Limited

Rolex Securities Ltd Rostrum Inv. & Inv Securities Limited Royal Crest Finance Ltd

Santrust Securities Ltd Securities Solutions Ltd

Securities Trading and Investment Ltd Securities Transaction & Trust Company Ltd

Security Swaps Ltd Shelong Investment Ltd

Sigma Securities Ltd Signet Investments Securities Limited SMADAC Securities Limited

Solid Rock Securities & Investment Ltd Spring Stockbrokers Ltd

Spring Trust & Securities Ltd Springboard Trust & Investment Ltd

Stanbic Euities Nig. Ltd Stanwal Securities Ltd

Strategy & Arbitrage ltd Summa Guaranty & Trust Co Summit Finance Company Ltd

Supra Commercial Trust Ltd TFS Securities & Investment Ltd

Tiddo Securities Ltd Tomil Trust Ltd

Topmost Finance & Investment Ltd Tower Assets Management Ltd

Tower Securities & Investment Ltd Traders Trust & Investment Company Ltd

Trans Africa Financial Services Ltd Transworld Investment Ltd Tropics Securities Ltd

Trust Yield Securities Ltd Trusthouse Investments Ltd

86

18. PROCEDURE FOR APPLICATION AND ALLOTMENT

1. Application

The general investing public is hereby invited to apply for the Bonds through any of the

Receiving Agents listed in this Prospectus:

1.1 Application for the Bonds now being offered must be made in accordance with the

instructions set out on the back of the Application Form. Care must be taken to

follow these instructions, as applications which do not comply will be rejected.

1.2 The Application List for the Bonds now being offered opens on ....... 2011 and will

close.......2011. Applications must be for a minimum of 1000 registered Bonds of

N1,000.00 each, representing an aggregate value of N1,000,000.00 and in integral

multiples of 100 registered Bonds thereafter, representing an aggregate value of

N100,000 each. The number of registered Bonds for which application is made and

the value of the cheque or bank draft attached should be entered in the space

provided in the attached Application Form.

1.3 The subscription currency for the Issue is the Nigerian Naira (N). Foreign currency

subscriptions will be processed at the applicable foreign exchange rate determined

at the auction of the CBN as conducted from time to time.

1.4 The applicant should make only one application, whether in his own name or in the

name of a nominee. Multiple or suspected multiple applications will be rejected.

1.5 Applicants should complete the Application Form as appropriate. A corporate

applicant should affix its seal in the box provided for this purpose and state its

incorporation (RC) Number or in the case of a corporate foreign subscriber, it’s

appropriate identification number in the jurisdiction in which it constituted.

1.6 All applicants are required to indicate their bank account details in the space

provided on the Application Form for the purposes of Coupon and Principal e-

payments.

1.7 Each duly completed Application should be forwarded ONLY to one of the Receiving

Agents listed in this Prospectus, together with the cheque or bank draft for the

aggregate value of Bonds being subscribed, crossed “EKITI STATE GOVERNMENT

BONDS 2011/2018” and made payable to the Receiving Agent to which the

application is addressed. All bank commissions and transfer charges must be

prepaid by the applicant. All cheques and bank drafts will be presented upon receipt

and all applications in respect of which cheques or bank drafts are returned unpaid

will be rejected.

2. Allotment

The State Executive Council and the Joint Issuing Houses reserve the right to accept or reject any

application in whole or in part for not complying with the terms and conditions of the Issue. All

irregular or suspected multiple applications will be rejected. The allotment proposal will be subject

to the clearance of the Commission. Certificates in respect of allotted Bonds will be sent by

registered post not later than 15 (fifteen) Business Days from the Allotment Date. Any investor who

prefers the issue of the Bonds in dematerialised form should specify the details of his/her

stockbroking firm, CHN and CSCS account in the space provided on the Application Form.

3. Application Monies

All application monies will be retained in separate interest-yielding bank accounts with the

Receiving Banks pending allotment. If any application is not accepted, or is accepted for fewer

Bonds than the number applied for, a crossed cheque for the full amount or the balance of the

amount paid (as the case may be) plus interest will be returned by registered post within 5 (five)

Business Days of allotment by the Registrar. Where monies are not sent within the stipulated 5

Business Days, accrued interest will be paid to the affected applicants at the prevailing Monetary

Policy Rate plus a margin i.e. MPR +5%.