Niger: Gov Bago seeks approval of assembly to secure N65bn loan to support agricultural, educational sectors

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The Niger State House of Assembly has disclosed the receipt of a letter from the State Governor, Mohammed Umar Bago, requesting its approval to secure a N65bN loan from commercial banks to boost the agricultural and educational sectors of the state.

The letter addressed to the Speaker, Hon Abdulmalik Sarkindaji, was presented during plenary on Tuesday after resumption of a one-month recess.

He told the house that the letter sought access to N50 billion Agricultural Financing Facility Offered by Union Bank PLC for establishment of Agricultural Food Park and Farm Estate.

“The facility will support Niger State initiative for actualising the ongoing Green Economy Revolution of the State and Creat value chain for farm produce, ensure bumper harvest and food security for the state and Nigeria at large,” Sarkin-Daji said.

He explained that the N50 million loan will assist the state, being one of the states of the Federation chosen by the Federal Government as a pilot to anchor the 2024 dry season farming programme to get a grant to the tune of N200 billion that will assist the state to defray the proposed loan.

According to the letter, “The N50b loan facility is expected to be backed by an irrevocable payment Standing Order (ISPO) to be issued by Niger State Government in favour of the Bank and would be available at the cost 1 per cent management fee (One – off) and interest rate of 20% pa repayable in 106 monthly installments, inclusive of a 24-month moratorium of principal and three-month moratorium of interest.

“Some of the benefits of the N50bn facility offered by Union Bank PLC will help the government to Finance Niger State Food Security System and Logistics Company Limited through the establishment of agricultural food parks and farms.

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“In addition, the facility will provide self-sufficiency to the people of the state in areas of investments in agriculture, facility maintenance and direct labour interventions, help ensure food security, boost the state Internally Generated Revenue (IGR) provide communities with more projects of water supply, health and education facilities.”

The Speaker further stated that the Governor is also seeking the approval of the House to access the N15b contract financing facility offered by Fidelity Bank PLC for the uptake of Engr. A. A. Kure University of Education, Minna Niger State, to meet the funding requirement.

According to the governor, “The repayment of the facility is through deduction of 60 per cent from the state and 40 per cent FAAC allocation from the 25 local government areas. The state is also expected to receive an additional N100billion loan facility from Fidelity Bank/Afrexim Bank, which could help to defray the above N150 billion together with the initial N150 billion taken by the immediate past administration of the state.

Consequently, the letter was forwarded to the relevant house committees for proper scrutiny and possible approval and given one week to report back to the house.

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