The Niger State House of Assembly has turned down approval to Governor Abubakar Sani Bello’s request for approval to incur an Islamic Bond infrastructural financing (SUKUK) to the tune of N21.5billion which is repayable in 7 years and an interest of 17%
The State Assembly in a committee report laid to the plenary said the fund which is an Islamic bond should not have attracted any interest since Islam makes interest illegal.
The committee after series of hearing discovered that, #10.336 billion will accrue as charges and professional fees. Totaling the amount to be repaid to #31.4 billion over 7 years.
The committee also discovered that a monthly deduction of about # 1 billion from the state’s statutory allocation will not be feasible as salaries and wages might suffer.
In the committee report also it stated that, the mining city project is not feasible and likely to become an abandoned project.
The House committee in it the report said ” The process of selecting the contractor(sic) to handle the jobs don’t follow due process, since there wasn’t any documented evidence regarding bidding/tendering for jobs except those on public private partnership”
The Committee therefore said, “in view of the observations the committee hereby recommends that the request of Mr. Governor for the House resolution to enable the Niger state Government secure a SUKUK bond of N21.5 Billion Should not be granted”
The committee chairman, Hon. Abdulmalik Kabir of Paikoro state Constituency presenting the report said the the bond projects were over priced, and the timing is wrong, he asked why now?
The House then in a unanimous voice vote adopted the report and directed the clerk to communicate the rejection to the executive.