Governor Mohammed Umaru Bago of Niger State has admitted that securing a N1 trillion loan for the state’s Urban-Rural Renewal Project may have been too heavy a burden, revealing that he would have opted for a N500 billion loan instead if he had foreseen the challenges ahead.
Bago made the revelation during a meeting with contractors handling various projects in the state. He lamented the slow progress of work, despite the availability of funds, and expressed concern that less than half of the allocated money had been used so far.
“If I had known, I would have just taken N500 billion because the cost of N1 trillion is heavier on me,” he said. His remarks suggest that the state is facing financial pressure due to the loan, even as some of the intended projects remain incomplete.
The governor did not hide his frustration over the pace of work by contractors, demanding that they speed up their efforts to ensure that the projects are completed on time. He issued a stern warning, stressing that he expected the work to be done within the set deadline of April 2025.
“So you want me to come up and tell you to do it? You have to do it in two weeks,” Bago told the contractors, making it clear that he would not tolerate further delays.
While acknowledging some progress in road construction, including the Paiko-Lapai road, the governor warned that any contractor who failed to meet the deadline risked being dropped from future state projects.
“If you don’t perform by April, I will give the project to someone else. I am serious,” he declared.
Background to the Loan and the Urban-Rural Renewal Project
Governor Bago’s administration secured the N1 trillion loan to fund the ambitious Urban-Rural Renewal Project, which was aimed at improving infrastructure across the state. The project was designed to develop roads, bridges, schools, hospitals, and other key public amenities to enhance economic growth and ease transportation within urban and rural areas.
The initiative was widely welcomed when it was first announced, as many parts of Niger State had suffered from poor infrastructure for years. The government argued that the massive loan would help bridge the developmental gap, boost local businesses, and attract investors to the state. However, the sheer size of the loan sparked debates over whether the state would be able to manage the repayment effectively.
Rising Concerns Over the Loan Burden
Governor Bago’s latest admission highlights growing concerns over the impact of the N1 trillion loan on the state’s finances. The realization that a smaller loan of N500 billion might have been more manageable raises questions about whether the government carried out proper assessments before securing the funds.
There have been concerns from financial experts and opposition voices about how the loan would be repaid and whether the expected benefits would justify the financial burden. Some residents and economic analysts have also questioned whether the funds were being used effectively, considering the slow pace of project execution.
The governor’s comments suggest that the state may be facing financial difficulties, which could impact future developmental efforts. Observers believe that the pressure to complete the projects within a short time frame is mounting, and failure to do so could create more economic strain.
Pressure on Contractors to Deliver
With April 2025 set as the deadline, the governor has made it clear that there will be consequences for any contractor who fails to meet expectations. His frustration was evident during his meeting with project handlers, as he insisted that delays would no longer be tolerated.
Bago’s warning to contractors is likely an attempt to prevent any further setbacks that could add to the financial strain. The state government is keen on seeing tangible results from the massive loan, especially as residents continue to demand better infrastructure.
Future of the Urban-Rural Renewal Project
Despite the challenges, Governor Bago remains committed to completing the ongoing projects. He has also announced plans for the second phase of the Urban-Rural Renewal Project, set to commence in 2027. This suggests that, despite the current difficulties, the government still sees long-term value in investing heavily in infrastructure.
However, with the financial weight of the first phase already causing concerns, questions remain about how the state will fund the next phase. It remains unclear whether another loan will be considered or if alternative funding sources will be explored.
Mixed Reactions from the Public
Governor Bago’s admission has drawn mixed reactions from Niger State residents and political observers. While some people appreciate his honesty in acknowledging that the N1 trillion loan was a heavy burden, others see it as a sign of poor financial planning.
A resident of Minna, Ibrahim Adamu, said, “At least the governor is admitting that the loan is a big problem. But my concern is, why take such a huge amount in the first place if there was no proper plan?”
Another resident, Fatima Sani, noted, “We have seen some progress in road construction, but we need to know if this loan will be a problem for future generations. The government should be transparent about how they plan to repay it.”
Meanwhile, some opposition politicians have seized the opportunity to criticize the administration’s financial decisions, questioning whether the government thoroughly considered the economic impact before securing the loan.
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