Nigeria: The Niger Bond Debate

18 August 2013
opinion

Controversy has surrounded the decision of the Niger State government to go to the capital market to obtain bonds, which it says are to fast-track development in the state. The government says it spends about 80 per cent of its allocations from the Federation Account on payment of salaries and emoluments of workers and is left with little to carry out development projects.

First Bond In 2009, the Niger State government went to the capital market to take a N6 billion bond, which it said it used for some road projects. The money was used to construct the Babana-Lumuna road that had been a death trap and an embarrassment to the state, indeed the country, since it borders Benin Republic, some township roads in Minna, the state capital, the road leading to Gurara Falls, as well as Mokwa-Rabba road, among others. Roads earmarked for construction with the N6 billion bond, according to the Commissioner for Finance, Mahmud Kpako Bello, were all completed, except the Mokwa-Rabba road. The road contract was re-awarded because it was discovered that the contractor earlier engaged was not working in accordance with the time frame of the contract.

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