The Niger State Governor Rt. Hon. Umar Mohammed Bago has written to the state House of Assembly to seek for its approval to secure N65billion loan from commercial Banks.
The letter requesting the Assembly’s approval and addressed to the Speaker, Rt. Hon. Abdulmalik Sarkindaji was read at the House plenary on Tuesday after its resumption from one month recess.
According to the Speaker the correspondence includes Request to Access #50Billion Agricultural Financing Facility offered by Union Bank PLC for establishment of Agricultural Food Park and Farm Estate.
The facility, according to the Governor will support Niger State initiative for actualizing 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.
He further informed the house that the N50million loan will help the State being among the States of the Federation chosen by the Federal Government as a pilot to anchor 2024 dry season farming programme with a grant to the tune of N200billion that will assist the State to defray the proposed loan.
The Governor disclosed that “the N50billion 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% management fee (One – off) and interest rate of 20% repayable in 106 Monthly installments inclusive of 24 months moratorium of principal and 3 months moratorium of interest”.
Bago pointed out that some of the benefits of the facility which includes, that the N50billion 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 estate.
In addition, he said the facility will provide self- sustenance 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.
In the same vein, the Governor is also seeking the approval of the Assembly to Access N15billion Contract Financing Facility Offered by Fidelity Bank PLC for Uptake of Engr. A. A. Kure University of Education, Minna Niger State.
According to the letter to the Assembly, the State Government approached Fidelity Bank Plc, for a contract Financing to meet up with the funding requirement of the University
The repayment of the facility is through deduction of 60% from the State and 40% FAAC allocation from the 25 Local Government Areas, the State is also expected additional N100billion loan facility from Fidelity Bank/Afrexim Bank which could help to defray the above N150billion together with the initial N150Billion taken by the immediate past administration of the State.
The two loan requests have been forwarded to the relevant house committees for proper scrutiny and possible approval.
The committees were given one week to report back to the house at it plenary.