Governor Abubakar Sani Bello of Niger state has sent request to the state House of Assembly seeking approval to secure N25 billion Sukuk bond to fix infrastructure and health services in the state.
The request was contained in the governor’s communication to the Niger state House of Assembly read by the Speaker, Abdullahi Bawa Wuse.
The governor said the loan would be used to reconstruct major roads in the state including the Minna – Bida road and to remodel the Kontagora General Hospital.
He said the loan which came in two tranches of N15 and N10 billion respectively will be secured on a consecutive order and would be defrayed through Irrevocable Standing Payment Order (ISPO) to be issued to the creditors by the state government.
Although the governor’s letter did not explain the interest rate and other charges attached to the loan and duration of payment, it however outlined proposed projects to be executed by the loan.
Members in their comments sought for more clarification on the agreement, directing the executive arm of government to furnish the house with details concerning the loan.
Blueprint learnt this is the second time the governor would be requesting approval for sukuk loan after the first one which was N21.5 billion was rejected by the last assembly on the grounds that the interest rate and other charges were unnecessarily high.
The lawmakers argued that the loan will overburden the state finances while also raising concerns on the unequal distribution of projects to be funded by the loan in the state adding that the bulk of the projects were located in the governor’s geo-political zone.
However, Governor Sani Bello said if the present request was approved and secured, the proposed projects to be executed under the bond include the Minna- Kataeregi-Bida road, which was estimated at the cost of N9 billion, the construction of Kontagora bypass to be partially funded with the sukuk at the rate of N3.85 billion even though the estimated cost of the project is N5.05 billion and remodelling of Kontagora General Hospital.
The governor said disbursement of the loan will be carried out in accordance with the 2019 appropriation, 2019 supplementary appropriation law as well as 2020 appropriation law of the state.
