FG Commits N362.557 billion To Funding Key Road Projects Through Sukuk

Merit Ugolo

Merit Ugolo

The Federal Government has committed, through the Federal Ministry of Works and Housing (FMWH), a total sum of N362.557 billion from 2017 to date to the funding of key road projects through Sukuk, according to Zainab Ahmed, Minister of Finance, Budget and National Planning.

In her remarks at the recent symbolic cheque presentation ceremony of 2021 sovereign sukuk issue proceeds of N250 billion to the implementing ministries in Abuja, Mrs. Ahmed noted that the symbolic cheque presentation ceremony, which started in 2017, is the fourth in the series.

“So far, we have committed, through the Federal Ministry of Works and Housing (FMWH), a total sum of N362.557 billion from 2017 to date to the funding of key road projects through Sukuk,” she said.

“In view of the significant milestones recorded in the use of Sukuk funds to reconstruct and rehabilitate our road infrastructure, which evidence is visible for all to see, the government decided to incorporate other Ministries with critical road projects into the Sukuk funding structure.

“Today, we have the Federal Capital Territory Administration (FCTA) and Ministry of Niger Delta Affairs (MNDA) joining us.
According to her, the three Ministries (FMWH, FCTA and MNDA) will be sharing the Sukuk Issue Proceeds of N250 billion, which was successfully issued by the Debt Management Office (DMO) on behalf of the federal government on December 29, 2021 as follows: FMW&H – N210,565,000,000.00; FCTA – N29,000,000,000.00; and MNDA – N10,435,000,000.00.

“The 2021 N250 billion will be released as part of the capital expenditure in the 2021 Appropriation Act, which has been extended by the National Assembly to March 31, 2022.

“As at November 2021, N3.40 trillion had been expended for capital, which represents over 74 percent performance when compared to the total capital budget of N4.569 trillion. Out of the N3.40 trillion so released, N2.98 trillion represents 83 percent of the provision for ministries, departments and agencies (MDAs’) capital, N369.9 billion for multi-lateral/bilateral project-tied loans, and N49.52 billion as government owned enterprises (GOEs) capital expenditure.”

The government, according to her, will continue to prioritise spending on critical infrastructure in order to sustain the momentum on gross domestic product (GDP) growth.

The GDP is projected to grow by 4.20 percent in 2022. This can only be possible through steady increase in spending on critical infrastructure, such as roads.

Ahmed congratulated the DMO for the introduction of the Sovereign Sukuk and for the successes recorded in raising the funds through the product, which now stands at a total sum of N612.557 billion.

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