Niger Assembly clarifies $14.4m loan request after public outcry

The Niger State House of Assembly has issued a clarification regarding a $14.4 million financing request, stating that it did not approve any fresh loan for the state government. The clarification came after public outcry and media reports misinterpreted correspondence from Governor Mohammed Bago.

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The Governor therefore requested the House to approve a bank guarantee in favour of the United Bank for Africa for a credit facility of $14,445,007.06 under the Saudi EXIM Line of Finance to the Niger Foods Security Systems and Logistics Company. The facility has a tenure of 84 months with an 18-month moratorium.

Governor Bago had requested legislative approval for a bank guarantee valued at $14,445,007.06. This guarantee was to be provided in favor of the United Bank for Africa, under a financing arrangement for Niger Foods Security Systems and Logistics Company, utilizing the Saudi EXIM Line of Financing. The facility reportedly has a tenure of 84 months with an 18-month moratorium.

Speaker Abdulmalik Sarkin-Daji explained during plenary that the House had merely received and read the governor's correspondence. He stressed that the Assembly neither deliberated on the matter nor approved the request, contrary to suggestions that a new loan had been sanctioned. The statement emphasized that the request was not for the Niger State Government to obtain a loan directly.

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The Speaker explained that, contrary to reports suggesting that the House approved a fresh loan request, the correspondence was merely received and read before members during plenary. He stressed that the House neither deliberated on the matter nor approved the request.

Further clarification was provided regarding Niger Foods Security Systems and Logistics Company. The Assembly explained that it is a separate corporate entity operating as a limited liability company, distinct from the Niger State Government. While the state government holds the largest shareholding in the company, it maintains its own corporate identity and management structure. The government-backed guarantee was reportedly required by the financing institution due to the state's significant stake in the company.

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He explained that Niger Foods Security Systems and Logistics Company is a separate corporate entity and not the Niger State Government. Although the state government is the largest shareholder in the company, it operates as a limited liability company with its own corporate identity and management structure.