By Fodio Ahmed
The Niger State Governor, Alhaji Abubakar Sani Bello has officially written to the Niger State House of Assembly seeking their legislative ratification for the State Government to restructure the payment of N9 Billion and 12 Billion fixed bond (with outstanding principal of N4,219,531,417.28 and N8,236,728,815.82) issued in 2011 and 2013 respectively.
Governor Sani Bello’s letter was read by the Speaker of the Assembly, Rt. Hon. Ahmed Marafa during the Assembly’s 54th sitting at the Jikantoro Assembly Complex in Minna, Niger State Capital.
The letter reads ; Mr. Speaker may please refer to the extracts of resolution No. 4 -2016/2017 session of the Niger State House of Assembly, for Niger State Government to restructure the sum of N12,456,260,234.10 (comprising N4,219,531,417.28 for Series I (N9Billion) and Series II (N12Billion) bonds due for full repayment by 2018, by extending the tenor by 7 years from the date of restructuring.
The letter further explains that ; sequel to the resolution of the House, the bondholders, at the Extraordinary General Meeting (EMG) of August 9, 2016 , approved that the sum of N10,491,104,628.35 (comprising N3,485,794,168.92) for series I and N7,005,310,459.43 for series II bond) , being the amended balance after repayment of maturities that have fallen due , be restructured on terms which include the following ;
1. That the series I and II bonds be restructured by extending the maturity dates of the bonds by 3 years to mature 2021 with repayment of the Principal amounts still being semi-annual amortised payments;
2. That the Coupon rates with effect from the date of restructuring of the Series I and II bonds will be at 17.00% p.a. respectively.
The sole purpose of the request is to seek the Niger State House of Assembly’s consent to extend the tenor of the bond’s payment by 3 years as against the earlier terms to ease pressure on the State’s cash flow and increase funding for Government to implement it’s programmes to benefit Niger State Citizens.
The letter is in Compliance with the Constitution of the Federal Republic of Nigeria, 1999 (as amended ) to restructure these bonds on the amended terms.
Consequently, the Niger State House of Assembly unanimously approved the Governor’s request in interest of Nigerlites and Niger State.