THIS DOCUMENT IS IMPORTANT AND SHOULD BE READ CAREFULLY. IF YOU ARE IN ANY DOUBT ABOUT ITS CONTENTS OR THE ACTION TO BE TAKEN, PLEASECONSULT YOUR BANKER, STOCKBROKER, ACCOUNTANT, SOLICITOR OR ANY OTHER PROFESSIONAL ADVISER FOR GUIDANCE IMMEDIATELY. FOR INFORMATIONCONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 56 HEREOF. THIS DEBT ISSUANCE PROGRAMME PROSPECTUS CONSTITUTES A SHELF PROSPECTUS WITHIN THE MEANING OF RULE 40 (C) OF THE SEC RULES AND REGULATIONS DELTA STATE GOVERNMENT OF NIGERIA BOND ISSUANCE PROGRAMME OF N100,000,000,000 This Shelf Prospectus is dated September 29, 2011 and shall be valid for 24 months after this date. Under this Bond Issuance Programme (“the Programme”), the Delta State Government (the “DTSG” or “Issuer”) may from time to time issue bonds (“Bonds”), in separate series or tranches, in amounts, at prices and on terms and conditions contained in this Shelf Prospectus and to be set out in the applicable Pricing Supplements for each series or tranche. This Shelf Prospectus is to be read and construed in conjunction with any supplement hereto and all documents which are incorporated herein by reference and, in relation to any Series or Tranches (as defined herein) of Bonds, together with the applicable Pricing Supplement. This Shelf Prospectus shall be read and construed on the basis that such documents are incorporated and form part of this Shelf Prospectus. This Shelf Prospectus has been seen and approved by the representatives of the State Executive Council (the “Executive Council”). The Delta State Executive Council (“EXCO”) on behalf of the Delta State Government have taken reasonable care to ensure that the material facts contained herein are true and accurate in all material respects and confirm, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no material facts, the omission of which would make any statement herein misleading or untrue. The contents of this Shelf Prospectus are not to be construed as legal, financial or tax advice. Each prospective investor should consult his, her or its own legal adviser, financial adviser or tax adviser for legal, financial or tax advice. Neither the Delta State Executive Council (“EXCO”) on behalf of the Delta State Government listed on page 8 & 9 nor any of the Parties to the Programme listed on page 9-12 of this document is making any representation to any subscriber regarding the legality of an investment by such subscriber. This Shelf Prospectus has been registered by the Securities & Exchange Commission. It is a civil wrong and a criminal offenceunder the Investments and Securities Act No. 29, 2007 to issue a prospectus which contains false or misleading information. Clearance and registration of this prospectus and the securities which it offers does not relieve the parties of any liability arising under the act for false or misleading statements or for any omission of a material fact. The registration of this Shelf Prospectus and any subsequent Pricing Supplements shall not be taken to indicate thatthe Securities & Exchange Commission endorses or recommends the debt securities to be issued under the Programme or assumes responsibility for the correctness of any statements made or opinions or reports expressed herein. LEAD ISSUING HOUSE RC 125384 CO-ISSUING HOUSES RC 223042 RC 446561 RC 189502 ICMG SECURITIES LIMITED RC 174789 RC 444999 RC 485600 RC 639491 This Prospectus is dated September 29, 2011 1 CONTENTS DEFINITIONS.......................................................................................................................................................... 3 INFORMATION RELATED TO THIS SHELF PROSPECTUS ................................................................................ 6 ISSUE OF PRICING SUPPLEMENTS....................................................................................................................... 7 PARTIES TO THE PROGRAMME........................................................................................................................... 8 THE PROGRAMME................................................................................................................................................. 13 DECLARATION BY THE ISSUER.......................................................................................................................... 14 SUMMARY OF THE PROGRAMME ....................................................................................................................... 15 TERMS & CONDITIONS OF THE PROGRAMME……………………………………………………………….. 19 INFORMATION ON NIGERIA .............................................................................................................................. 29 INFORMATION ON DELTASTATE .................................................................................................................. 40 RISK AND MITIGATING FACTORS FOR THE PROGRAMME........................................................................... 56 FINANCIAL INFORMATION-HISTORICAL........................................................................................................... 59 Letter from the Reporting Accountants........................................................................................................... 59 Statement Of Accounting Policies ................................................................................................................. 60 Statement of Assets & Liabilities..................................................................................................................... 61 Statement of Revenue and Expenditure.............................................................................................................. 62 Notes to the Accounts………............................................................................................................................ 63 FINANCIAL INFORMATION FORECAST............................................................................................................... 74 Report on the Revenue and Expenditure Forecast........................................................................................... 74 Memorandum on the Revenue and Expenditure Forecast........................................................................... 75 Bases & Assumptions for Revenue & Expenditure Forecast........................................................................... 78 BOND RATING (EXTRACTED FROM THE RATING REPORT) ...................................................................... 80 STATUTORY AND GENERAL INFORMATION ................................................................................................. 82 Indebtedness..................................................................................................................................................... 82 Claims and Litigation........................................................................................................................................ 82 Material Contracts............................................................................................................................................. 82 Bond Rating...................................................................................................................................................... 82 Relationship between the Issuer and its Advisers ........................................................................................ 83 Consents............................................................................................................................................................ 83 Documents Available for Inspection ............................................................................................................. 85 FORM OF PRICING SUPPLEMENT……………………………………………………………... 86 2 DEFINITIONS Unless the context otherwise requires the following expressions shall have the meaning respectively assigned to them: “Allotment Date” The date of clearance of the basis of allotment of a Series Issue by SEC “Auditor” The Auditor General of Delta State; “Authorised Representatives” The members of the Delta State Executive Council; “Bond” The Series 1 Bond and any other bond of any Series issued by the State pursuant to the Programme and constituted by the Programme Trust Deed and an applicable Supplementary Trust Deed “Bondholder” Any person for the time being entered in the Register 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” means a day (other than Saturday or Sunday or a public holiday) on which banking institutions are open for business in Nigeria; “CAC” The Corporate Affairs Commission; “CBN” The Central Bank of Nigeria “CSCS” The Central Securities Clearing System; “Certificates” In relation to the Bonds, a certificate in or substantially in the form specified in the First Schedule to the Programme Trust Deed and with respect to any Additional Bonds, a Certificate in or substantially in the form specified in a Supplementary Trust Deed to the particular Securities being issued or in such other form as may be agreed from time to time by the Trustee; “Deed” The Programme Trust Deed and any amendment, notation or supplemental trust deed issued or made pursuant to this programme trust deed; “DTSG” Means the Delta State Government of Nigeria and the Issuer of the Bonds;