The Niger State House of Assembly has clarified widespread reports suggesting that Governor Umaru Mohammed Bago requested a fresh $14.4 million loan for the state, stating that no new borrowing was approved or sought by the government.
Addressing journalists in Minna on Wednesday, the Speaker of the House, Rt. Hon. Abdulmalik Sarkindaji, explained that the correspondence from the governor was strictly for legislative approval to guarantee a loan facility for the Niger Food Security Systems and Logistics Company, not a direct loan to the state government.
He said the misunderstanding arose from misinterpretations of the governor’s request, which was presented to the House during plenary on Tuesday and subsequently referred to the appropriate committee for further legislative scrutiny.
According to him, the request involved a financing arrangement between the Niger Food Security Systems and Logistics Company and the Saudi Exim Bank, facilitated through the United Bank for Africa (UBA), with the state government only acting as a guarantor.
“The House did not approve any fresh loan for the state government. What we received was a request for approval to enable the state serve as guarantor for a facility being accessed by Niger Foods Security Systems and Logistics Company,” the Speaker clarified.
Sarkindaji emphasized that Niger Foods Security Systems and Logistics Company is a separate corporate entity from the state government, despite the government being its major shareholder. He noted that the company maintains its own management structure and operational independence.
He further explained that the loan repayment obligation rests solely on the company, not the state government, stressing that the government’s role is limited to providing a guarantee due to its equity stake in the enterprise.
The Speaker added that such guarantees are often required by financial institutions as part of risk management frameworks when dealing with government-linked entities.
He also noted that the House remains open to considering genuine loan requests directly tied to state development projects, provided they follow due legislative processes.
Sarkindaji disclosed that the Assembly maintains detailed records of all loan approvals granted to the current administration and urged members of the public seeking clarity on the state’s debt profile to consult the Debt Management Office for accurate information.
He reaffirmed the commitment of the House to transparency and due process in all financial approvals, insisting that the recent controversy was based on a misunderstanding of the governor’s request rather than any new borrowing by the state government.