Chief Servant of Niger State Dr Mu’azu Babangida Aliyu

The Security and Exchange Commission (SEC) has said that it certified the projects being executed with the N6billion bond acquired by the Niger State government in 2009, before giving the go-ahead for the collection of another N9billion from the capital market.
The commission told a stakeholders meeting in Minna, Thursday, that if the money collected was not judiciously used on the projects itemised, it would have denied the government an opportunity to collect another loan.
It will be recalled that the Niger State government, in 2009, obtained a N6billion credit facility from the capital market, which was spent on six major road projects, before applying for another N30billion approved but being released in tranches.
An official of the Commission said the organization had in place a department that supervised project execution and that states found to have failed to utilise the money properly were usually blacklisted and stopped from getting further credit facility from the capital market in the future.
‘There is no way money from the capital market can be diverted to other projects aside from the projects listed in the memorandum of understanding,’ the official said.
He said that the capital market was the most appropriate place to seek funding of development projects because it had long repayment periods with little interest rate.
The bankers of the government for the two bonds, UBA Plc and Skye Bank Plc, also told the meeting that government had been very religious in the repayment of the facilities.
They said government had, so far, paid a total of N6billion from the two bonds, with another N1billion in the kitty that would be used to pay subsequent bills.
The bankers said the government had also generated an interest of N100million from the money kept with them.
Earlier, the Commissioner for Finance, Alh. Mu’azu Bawa, had told the gathering that government’s determination to fast-track the development of the state necessitated the acquisition of the two bonds.