Saturday, 31 August 2013

The dividends of the N36billion Niger bond

By Wole Mosadomi

Several years back, Minna, Niger State capital, used to be one of the cheapest state capitals in the country where housing, food and other amenities were at affordable prices.

Besides, infrastructural facilities such as roads among others were in good shape and enjoyed by all without much stress.

However, with the pronouncement of Abuja as the new federal capital, things started to change as Minna, Suleja and other towns close to the new federal capital came under pressure.

Out of the states from which the new federal capital was carved out, Niger  is the closet to Abuja and this proximity affected social amenities  provided as they are overstretched.

Many civil servants and even contractors prefer to settle in Suleja, Zuba and even  Minna and transact their businesses in the new federal capital.

Successive administrations in the state made presentations on the need for the Federal Government to come to their aid in terms of finance.

When the administration of Governor Mu’azu Babangida Aliyu took office in 2007, one of the coordinal points of the administration was how to reverse the decaying infrastructural facilities. Knowing that the federal allocation accruing to the state could not meet up the set goals of his administration, the  Aliyu administration opted for bond.

Opposition against  the bond mounted but  the Aliyu administration was not deterred.

Many financial experts including a former Director General of the Security and Exchange Commission, Alhaji Sulaiman Ndanusa, who is also from Niger, backed the bond   as long as the money would be judiciously spent.

The state government eventually took the initial N6billion bond part of which was spent on roads spread over the three senatorial districts of the state. The bond was not spent on electrification of some villages in order to boost small scale industries at the grassroots.

The roads on which the bond was expended include the new Bussa-Lunma-Babana Road which had been abandoned for almost three decades for N1.5billion.

Others roads rehabilitated were Batati-Dabban Road, Mokwa-Rabba Road,  the first phase of Minna Lapai-Gwari road as well as the road leading to Gurara water falls.

By August 2011, 80% of the N6b bond had been repaid while the balance was also offset early this year.

As a result of the prudent management of the N6b bond, another N30b was applied for last October out of which N9billion has been drawn. This loan is tied to projects which include the Shiroro-Erena bridge. The construction of this bridge put an end to the risk being experienced by people of the area who were forced to cross the river by ferry which often resulted to capsizing and loss of lives and property.

Other roads embarked upon from the new bond is the completion of the Birgi- Gwari Lapai road to the permanent site of the Federal University of Technology Minna.

A breakdown of the projects being executed shows that the eastern by-pass in Minna will cost N2.5b, the Lapai-Gwari-FUT permanent site road, N924.8m, rehabilitation/construction of Kwakuti-Kaffinkoro-Gwada road, N2.2b, Rijau-Dukku road, N2.6b, construction of bridge across the River Kaduna at Shiroro, N1.4b and the dualization of the Idi burial ground-Ahmadu Bahago roundabout at  N1.4b.

In all, about 130kilometers of road projects are to be constructed besides the bridge which is expected to link the northern and southern parts of the state.

The state Commissioner for Information, Communications and Integration, Professor Mohammed Kuta Yahaya, who led a team of journalists to inspect some of these projects, said it was an opportunity to correct the negative impression that the bonds were not  judiciously utilised. It was also an opportunity to assess the ongoing projects and also see the competence of the contractors handling them.

The commissioner explained that the 66.8km Kwakuti-Kaffinkro-Gwada road is not a Federal Government project.

Meanwhile, because of poor quality jobs by contractors, the state government has revoked the contracts for the construction of about 90 kilometers of roads across the state.

Kuta said the contracts will be re-awarded to  competent contractors.

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