Niger State government in an attempt to tackle Infrastructural deficiency, has secured a N21.5 billion Sukuk bond to execute six projects within the next two years.
The Commissioner for Finance, Alhaji Zakari Abubakar disclosed this on Monday while briefing news men in Government House in Minna, the state capital.
Abubakar who said the essence of the bond which will be released in two tranches was to enable the state government carry out basic facility projects that will be of benefit to the people and the state added that the projects were to be executed in two tranches within two years.
He further stated that the projects were to be carried out in phases with the first phase of N12.5 billion project kicking off this year while the second phase slated for 2019 would gulp N 9 billion. He also said that the facility has a 7 year repayment plan at an interest rate of 17 percent.
The Commissioner said Minna township roads and the construction and rehabilitation of Kontagora General Hospital were captured, and would be executed in the first phase of the infrastructural development projects.
He said the second phase of the project will be the construction of Mariga International Ultra Modern Market, rehabilitation of Kontagora water treatment plant, construction of Suleja Trailer Park and the development of Niger State Mining Development City.
The Commissioner said 70 percent of the projects to be carried out are revenue yielding adding that the projects when completed will improve the socio-economic base of the state, provide access to clean water, improvement in the healthcare system as well as support to health care training.
Meanwhile the Commissioner said state government still have N8.1 billion outstanding debt to be settled from the N21billion bond taken by the immediate past administration of Dr. Mu’azu Babangida Aliyu.
Giving breakdown of the debt profile, Abubakar said N2.1 billion is outstanding from the N9 billion bond while N5.4 billion is the outstanding balance of the N12 billion bond.
He added that the two outstanding have been rescheduled for repayment by December 2021.