Nigeria: Niger Seeks Approval of N25 Billion Sukuk Bond

19 January 2020

Niger State Governor, Alhaji Abubakar Bello has written to the House of Assembly, requesting legislative approval to secure a N25billion Sukuk bond.

When acquired, according to the governor, the bond will be used for the construction of some critical roads and other projects.

The request was revealed in a letter addressed to the Speaker, Niger State House of Assembly, Mt Abdullahi Wuse on Friday.

The letter read in part: "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 sand consecutive tranches

"We also ask for permission to issue irrevocable standing payment orders for the repayment of the bond," the governor said in the letter read on the floor of the house.

He added that the bond would be issued in two tranches of N15 billion and N10 billion and that the government planned to take the facility "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 well as improve some health facilities which are capital intensive and require long term funding," the governor said.

The speaker read the letter at a plenary on Friday, though most lawmakers asked for the location and costs of the projects to be executed with the facility.

Wuse, therefore, directed the Clerk of the Assembly to communicate the observations of the legislators to the executives and get further details before there will be any deliberations on it.

A similar request brought before the 8th assembly was thrown out by the lawmakers who said then that the interest on the facility was too much.

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