GOV. BELLO GOES FOR ANOTHER 3.2BN LOAN TO FUND COUNTERPART PROJECTS

Governor Abubakar Sani Bello of Niger State has sent a request to the State house of Assembly to approve a loan of N3,206,783,783.78 billion (N3.2B) to fund counterparts to donor assisted projects within the state as captured in the 2018 approved budget.

The request was contained in a letter addressed to the speaker, Hon. Ahmed Marafa. In the letter, Governor Bello said

“The government of Niger State has received an offer of a term loan facility of N3,206,783,783.78 for counterpart funding of donor assissted projects in the 2018 approved budget as stated below”

  1. SUBEB 1,918,783,783.78,
  2. SDGs 720,000,000.00
  3. IFAD Value Chain 87,000,000.00
  4. RAMP III 175,000,000.00
  5. ANRIN 250,000,000.00
  6. ATASP 56,000,000.00

The amount except for RAMP III represents the required for 2015 and 2016  counterpart funding

The letter added that the loan is being offered ”…at an interest rate of 17% per annum and 2.0% of transaction cost, is to repaid in 30 months on a reducing balance basis.”

The house approved the request at a sitting on Thursday, 7th June, 2018, with a caveat by the member representing Munya constituency, Hon. John Paul Bahago that the funds must not be diverted by the Ministry of finance.

It would be recalled that in April, a N21.5 billion Sukuk bond request was forwarded to the house by Governor Bello and still pending approval by the assembly.

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