25b sukuk bond: Niger Assembly gives Approval

The Niger House of Assembly on Tuesday 21-01-2020 gave Gov. Abubakar Bello the go ahead to access a N25bn sukuk bond after he furnished it with details of the loan facility.

The lawmakers had asked the governor to provide the duration of the repayment plan and sought more information regarding some of the road projects to embarked upon.

In a response to their request through a letter read on the floor of the House by the Speaker, Alhaji Abdullahi Wuse, the governor noted that the tenure of the sukuk bond will not exceed seven years.

The governor also gave a break down of the locations of the RAMP roads totalling 235.19km as requested by the lawmakers.

The lawmakers thereafter unanimously gave the governor the green light to access the N25bn sukuk bond through a voice vote.

Nigerwatch reports that the governor had in a letter read in plenary dated Jan 16 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 require 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.” it added

Bello had requested the 8th Assembly’s approval to take N21.5bn Sukuk bond but the request was denied due to what the legislators termed “hidden high costs.

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