Niger state Governor, Alhaji Abubakar Sani Bello, has requested the approval of the state House of Assembly for a N25 billion Sukuk development bond.
This will be the second time the governor would be introducing such a request to the state’s House of Assembly.
The Governor had introduced a request to take a N21.5 billion Sukuk bond to the 8th Assembly but the request was denied due to what the legislators termed “hidden high costs” which led to a frosty relationship between the Executive and the 8th Assembly.
In a letter written to the state assembly and read on plenary by the Speaker, Honorable Abdullahi Bawa Wuse, the governor explained that the government intends to take the bond because of its commitment to the objective of transforming the state.
“The government reviewed its capital intensive development projects and resolved in some high leveraged projects and high impactful visible projects.
“Thus, the government seeks to upgrade, construct and reconstruct some essential roads as wellness improves health. The capital intensive projects which requite long term funding will mostly be funded through a N25 billion infrastructure development Sukuk Bond programme.”
The letter further stated that the bond would be issued in two tranches of N15 billion and N10 billion consecutively.
“The purpose of this request is to seek the approval of the Niger Assembly for the government of Niger state to raise N25 billion through a Sukuk Bond issuance programme in multiple and consecutive tranches. We also ask for permission to issue invokable standing payment orders for the repayment of the bond.”
Deliberating on the letter, the Deputy Speaker, Honourable Bako Kassie Alfa said the letter did not state the duration of the payment plan and give adequate information on the bond.
Another legislator, Honorable Umar Yabagi noted that some of the roads stated to be embarked upon were not fully detailed and sought for more information regarding the roads.
The Speaker then directed the Clerk of the Assembly to communicate the observation of the legislators to the Executives and get further details before there will be any deliberations on it.
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